Fuhuang Steel Structure disclosed that it has received a notice from the Hefei Intermediate People's Court. Creditor Chaohu Lushun Transportation Company applied to the court for pre-reorganization and reorganization of the company, citing its inability to repay due debts and obvious lack of solvency, while arguing it still has reorganization value. As of the announcement date, the company has not received court documents on initiating pre-reorganization or accepting the reorganization application. There remains significant uncertainty over whether the application will be accepted and whether the company will subsequently enter pre-reorganization and reorganization proceedings. The announcement also cautioned that if the court formally accepts the reorganization application and the reorganization is successfully completed, it would help improve the company's asset-liability structure. However, if the reorganization fails and the company is declared bankrupt, its shares face the risk of delisting. During the trading session on August 18, before the major matter was publicly disclosed, Fuhuang Steel Structure's share price surged shortly after the open and hit the daily limit up, remaining locked at the limit for the whole day. It closed at 4.47 yuan per share, a single-day gain of 10.10 percent.
Anhui Fuhuang Steel Structure Co LtdPre-reorganization application filed by creditor; outcome uncertain, could lead to restructuring or bankruptcy/delisting.
