ST Longda has launched an out-of-court restructuring and is openly recruiting restructuring investors to ease debt pressure. On July 6, Longda convertible bonds hit their daily limit up, and the company's share price rose 9.70%. The company initiated the out-of-court restructuring process on July 3, planning to negotiate with creditors, shareholders, and potential investors on debt repayment, debt adjustments, and the introduction of incremental funds before entering judicial bankruptcy proceedings. On the same day, it began the open recruitment of restructuring investors. The Longda convertible bonds will mature on July 12, 2026, with a redemption price of 115 yuan per bond. As of July 2, there were still 7,490,961 bonds outstanding that had not been converted into shares, accounting for 78.85% of the total issuance of 9.5 million bonds, corresponding to a maturity redemption amount of approximately 861 million yuan. The company's current cash funds are expected to be insufficient to cover the principal and interest due at maturity. To reduce redemption pressure, the company has repeatedly lowered the conversion price from the initial 9.56 yuan per share to 1.95 yuan per share. However, based on the share price of 1.47 yuan on July 6, the conversion value per bond is about 75.38 yuan, still below the bond price and the maturity redemption price, making it difficult for the market to voluntarily convert shares to ease the pressure. The recruitment of restructuring investors is divided into industrial investors and financial investors. Industrial investors are required to pay a deposit of 30 million yuan, while financial investors must pay 10 million yuan. The company's 2025 operating revenue was 10.019 billion yuan, down 8.83% year-on-year, with a net loss of 736 million yuan. In the first quarter of 2026, revenue was 2.058 billion yuan, down 19.25% year-on-year, with a net loss of 993,500 yuan. The company cautioned that out-of-court restructuring does not have judicial compulsory effect, and there is uncertainty as to whether it will subsequently enter the restructuring process. If the restructuring fails, it may face bankruptcy and delisting risks.
Shandong Longda Meat Foodstuff Co LtdCompany faces debt repayment pressure and is undergoing out-of-court restructuring due to insufficient cash to cover convertible bond redemption.
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