Yao Zhenhua was forced to sell assets again due to debt problems. The asset portfolios of the three companies under the Baoneng Group are being auctioned, involving a total of about 11$7.6 billion in claims. Among them, Ping An Bank is the main body of this asset disposal. It is understood that the cooperation between Baoneng Group and Ping An Bank is mainly carried out in the form of asset mortgage.
Although Baoneng Group's debt problems have had a certain impact on Ping An Bank, Ping An Bank still makes full provision for Baoneng Group's debts and has sufficient collateral for all credit facilities of Baoneng Group. However, due to the deteriorating debt problems of Baoneng Group, Ping An Bank also began to dispose of Baoneng Group's collateral through auctions.
In 2022, some properties of Baoneng Group were auctioned by the judiciary. In September this year, 260 apartments of Baoneng Group were also put up for auction, but the auction was not successful. And this time, the asset package is also facing the risk of unsuccessful auction. Overall, since 2022, the valuation of Baoneng's assets that have been put up for auction has exceeded 20 billion yuan, and most of them are due to debt problems between Baoneng Group and financial institutions.
Although these assets are high-quality assets, there are still frequent unsuccessful auctions and postponement of auctions. Therefore, there are concerns that this asset package may also be unsold.