St Dongsheng won 1. 500 million yuan default compensation

St Dongsheng (600771) today, the board and announced that, due to the inability to obtain new Reiter in Xinjiang or other shareholders agreed to give up the preemptive right, St Dongsheng terminated the "proposed contribution of 1."　　500 million yuan to buy the stake in the Qianjiang pharmaceutical assets by the Xinjiang new Reiter National Pharmaceutical Co., Ltd. (Xinjiang New Reiter) 36% Equity, 14% equity custody and Shaanxi Jisheng Pharmaceutical 50% Equity custody of the two medical assets "of the relevant bills." The company and the Sino-Pearl Shares November 2 signed the "cancellation of asset purchase Agreement" shows that the Pearl shares will be refunded St Dongsheng assets purchase advance 1. 500 million yuan, and pay liquidated damages 1.　　500 million yuan. At the same time, the corporate creditor committee presented a high risk contingent liability solution of 20% per cent of the liquidation ratio at a meeting of some financial creditors held on October 26, 2010. This ratio is compared with the company's three quarterly "25% to 30% of the amount of debt," a one-time liquidation of the expectation, more reduce the company's debt repayment burden. According to St Dongsheng 2007 Annual Report, its external guarantee a total of 1.2 billion yuan, of which about 120 million of its subsidiaries, Murray paper about 130 million yuan, Lanbao information, Cang shares, Cangzhou Cang well Chemical Company, *st Baoshuo and Hebei Bao Shuo group, and so on guarantee about 1.047 billion yuan. The four companies have been creditors to the court for bankruptcy, of which, Lanbao information, Cang shares and Bao-Shuo shares have entered the reorganization stage. 2007, according to the corresponding insolvency rate of enterprises, excluding the United States and subsidiaries of the paper and subsidiary guarantees, St. Sheng or have a liability of 695.57 million yuan. If the rate of 20% per cent, the company only pay 1.　　3.9 billion yuan, you can solve this heavy debt burden. It is noteworthy that the scope of this debt restructuring is only or is responsible, does not involve the short-term loan of St Dongsheng, and the relevant financial creditors have not formally replied to the Debt Commission whether the solution. The Commission will, after the formation of a formal solution, report to the relevant management departments, the approval can be fully implemented.