Ruihe Decoration: Application for reorganization and pre-reorganization by creditors
Ruihe Decoration announced that, due to creditors applying for reorganization and pre-reorganization, the Shenzhen Intermediate People's Court will hear this application. Creditors believe that the company is unable to repay its due debts but has reorganization value. If the court accepts the application, a delisting risk warning will be implemented on the company's stock, and if the reorganization fails, it will face the risk of termination of listing. The company stated that if the reorganization is successful, it will improve the asset-liability structure and promote sustainable development
According to the announcement from Ruihe Decoration (002620.SZ), on February 17, 2025, the company received a "Reorganization and Pre-Reorganization Application Notice" from the creditor Shenzhen Anyuan Stone Supply Chain Co., Ltd. (referred to as "the applicant"). The applicant applied to the Shenzhen Intermediate People's Court (referred to as "Shenzhen Intermediate Court") for the company's reorganization on the grounds that the company cannot repay its due debts and is clearly lacking in repayment ability, but has reorganization value. The company has not yet received the court's acceptance documents regarding the applicant's request for the company's reorganization and pre-reorganization. There is still uncertainty regarding whether the applicant's reorganization and pre-reorganization application will be accepted by the court and the specific timeline.
According to the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules" (2024 revision), if the court rules to accept the applicant's reorganization application, the Shenzhen Stock Exchange will implement a delisting risk warning for the company's stock trading; if the company is declared bankrupt due to a failed reorganization, the company's stock will face the risk of being terminated from listing. Investors are advised to pay attention to investment risks.
If the court rules to accept the reorganization application for the company and the company successfully implements the reorganization and completes the reorganization plan, it will greatly improve the company's asset-liability structure, enhance the company's operational capabilities, and promote the company's early return to a healthy and sustainable development track
