Germany'S Six Subsidiary German Companies Will Resume Trading Today When They Apply For Bankruptcy.

In March 30th, Si Jie global (00330) will resume trading. On the evening of March 27th, Si Jie global announced that, under the influence of health incidents, 6 Affiliated Companies affiliated to Germany had applied for the initiation of property protection litigation procedures.

It is reported that German property protection proceedings similar to the US Chapter 11 and the British CVA procedures, can protect the relevant companies from individual creditors recover, and the company must formulate relevant creditors and court approved reorganization plan.

In its March 27th announcement, Sijie global said that due to the recent outbreak of public health incidents, the public life of nearly all European countries has been completely restricted. The tight measures have led to the closure of all the shops in the European Group, as well as the franchised and wholesale partners of nearly all the groups, which can control the sales outlets, which will continue to have a significant negative impact on the sales of the group. 。

The situation of group Affiliated Companies in Europe has deteriorated further. At present, turnover is generated by weak e-commerce. However, salaries, rents and operating costs continue to accumulate. In March 27th, according to article 270b of the German bankruptcy law, the six Affiliated Companies of the company (collectively referred to as "related Affiliated Companies") have applied for the initiation of property protection litigation procedures, namely, the self management reorganization procedure, which is only applicable to enterprises whose liquidity is still liquid.

In March 27, 2020, the competent court has responded to the application of the Affiliated Companies's property protection litigation procedure and has temporarily implemented its own management to allow relevant Affiliated Companies to continue to manage its assets. When the mandatory public embargo is lifted and re opened, the Affiliated Companies can resume normal business operations.