LYC Restructuring End with Full Acquisition by YCEG
Resource from: cbcc-yinx Likes:2942
Jan 18,2007
LYC Restructuring End with Full Acquisition by YCEG
Due to the joint efforts by local government and involved enterprises, the LYC restructuring event lasting 3 years, has finally ended.
As a result, Yongcheng Coal & Electrical Group (YCEG) acquires the rest shares in Luoyang LYC Bearing Co.,Ltd that previously held by Luoyang Bearing Group(LBG) and the later will be dismissed in accordance with the National Preferential Bankruptcy Policy in March this year. From then on, LYC brand will only belong to the Luoyang LYC Bearing Co.,Ltd.
This restructuring event began since the end of 2003, when LBG signed a strategic framework agreement with NTN to carry out restructuring, but the Japanese party did not do anything essential until August 2004.
In June 2004, under the efforts made by Li tao, who just took the post of general manager in LBG, LBG began to launch their cooperation with YCEG.
By the end of 2004, LBG and YCEG formed joint venture, Luoyang LYC Bearing Co.,Ltd. YCEG invested RMB250 million, holding 67.5 percent of the new company's shares; LBG got the rest shares by paying 80% of their clean assets, including productive equipments, land and workplaces.
During the first half of 2005, however, the so-called clean assets of LBG were freezed by 14 creditor banks successively while being transfered to the new joint venture. Consequently, disput between two parties arose.
According to an informative man, "YCEG believed that it was LBG's delay in transfering that led to the freezing assets. And because of unfinished assets transfering, YCEG stopped providing money for the new company's technical upgrading. On the another hand, YCEG's action triggered dissatisfaction from LBG.
Since the second half of 2006, LBG and the local government set out to find new partners to complete the restructuring. They contacted several famous enterprises both in China and overseas for coopeartion, but without avail. The companies they had contacted include ZWZ, Shaeffler, Zhejiang Tianma, AVIC etc.
With the end of the lasting restructuring event, LYC bearing must revive, regaining its leading place in Chinese bearing industry.
Related Link:
Schaeffler Group Gave up LYC Acquisition
YCEG Announce Their LYC Restructuring Plan
Zhejiang Tianma Contest for LYC with Schaeffler Group
Schaeffler Group Plan to Acquire LYC
YCEG Announce Their LYC Restructuring Plan
Zhejiang Tianma Contest for LYC with Schaeffler Group
Schaeffler Group Plan to Acquire LYC
(cbcc-yinx)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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