On May 20th, Kangdexin released the announcement of Kangde New Composite Materials Group Co., Ltd. on the bankruptcy application of KDX Europe Composites R&D Center GmbH, a wholly-owned subsidiary of Germany.
According to the announcement, KDX Europe Composites R&D Center GmbH (hereinafter referred to as KDX Europe R&D), a wholly-owned subsidiary of Kangde New Composite Materials Group Co., Ltd. (hereinafter referred to as “Company”), is unable to pay the debt due, according to the local laws of Germany. On May 8, 2019, local time, the bankruptcy application was filed with the local court, and the court accepted it.
According to the announcement, KDX Europe Composites R&D Center GmbH is registered in Munich, Germany with a registered capital of 3 million Euros, mainly for the development of carbon fiber composite materials for mass production of automobiles.
The announcement pointed out that the German local court accepted the bankruptcy application of KDX Europe R&D on May 8, 2019, local time and appointed the bankruptcy custodian.
Kang Dexin said that the German local court has accepted the bankruptcy application of KDX Europe R&D. If KDX Europe R&D is officially declared bankrupt by the German court, it will no longer be included in the company's consolidated financial statements.
On the same day, Kangdexin also released a “Condition of Composite Materials and Assets Sealing and Freezing Announcement (VII)”.
The announcement pointed out that the company and its wholly-owned subsidiaries have filed 70 new cases of litigation and arbitration since April 16, 2019, including 41 labor dispute arbitrations, 17 sales and contract disputes, and 5 construction contract disputes. There were 4 corporate bond disputes, 2 contract disputes, 1 contract, no cause management, and 1 improper profit dispute. The total amount of the target amounted to RMB 936.79 million (involving the euro at a rate of 7.7175 to RMB), accounting for 5.17% of the latest audited company's net assets (18.135 billion).