Evergrande's bankruptcy drama has finally staged! Evergrande, known as the "savior of Chinese football", actually had an "unlucky" day.
Liquidation and bankruptcy sound a bit like the plot of a TV series, but this is reality, not made up by screenwriters. And what is even more surprising is that after the dust of this farce settled, someone became the first batch of beneficiaries!
Did you hear that? On January 29, the Hong Kong court pronounced a judgment on Evergrande's compulsory bankruptcy liquidation! And this news is not a joke, Evergrande's ** has been stumbling all the way, it's like jumping off a cliff!
As for the reason, I didn't explain it in detail at the time, but simply said "insolvency" and passed it over.
But with the progress of this sentence, Evergrande's **, including China Evergrande, Evergrande Property and China Evergrande, all suffered a huge decline.
Evergrande's ** stopped falling and rebounded, but the process was not smooth, China Evergrande's share price was once **21%, and its Evergrande Automobile also suffered an 18% decline, which can be described as ups and downs.
Soon after, all of Evergrande's ** were suspended from trading and entered a state of suspension, and it seems that China Evergrande, which was once a standout, has dropped to 0HK$163, and the market value also plummeted to 21HK$500 million, the future is worrying.
While there is no indication of which companies have the most potential in the future, when a company is in trouble, it is a clear warning with a sharp message of data that the company has lost its value and is waiting to disappear completely.
The final judgment of Evergrande is essentially a declaration of its bankruptcy liquidation and liquidation. To put it simply, it is to use all of Evergrande's valuable assets to repay debts.
Now, Evergrande must strictly follow the court's ruling, conduct a comprehensive inventory of all the company's property and intangible assets, and then distribute them in accordance with the regulations, and use the remaining funds to pay off debts.
Then the problem comes, Evergrande's debt is as high as 24 trillion yuan, can be said to be the largest bankruptcy case in China's financial history.
In the face of such a huge debt, does Evergrande have enough funds to repay it? This is not the case, if there is really so much money, why should Evergrande choose bankruptcy and reorganization?
Perhaps a comeback would be a wiser choice. However, it is Boss Xu, the founder of Evergrande, who is to blame, after all, it is he who squeezed out Evergrande's property, which led to today's predicament.
According to Hong Kong's regulations, if a listed company is ordered by the court to go into bankruptcy liquidation, there is still a chance to appeal, and if the appeal is successful, the bankruptcy liquidation will be revoked, which means that Evergrande still has a chance to regain its strength.
After all, if the capital markets cease trading once the bankruptcy liquidation takes effect, it will mean that any opportunity will be lost.
In theory, this opportunity is not that Evergrande did not grasp, in fact, as early as two years ago, Evergrande received a notice of liquidation, but the company's strength was still there at that time.
According to the rules, the company will only accept liquidation if there is no hope, so Evergrande had to delay it a full eight times, a full two years.
At that moment in mid-'23, according to the financial data disclosed by Evergrande at the time, the company's debt was as high as 24 trillion.
Of this, about 600 billion yuan came from home buyers, and this money was actually used to buy real estate, and Evergrande should have repaid it with the delivery of real estate.
However, the pre-sale houses launched by Evergrande were not delivered as scheduled, resulting in this part of the payment not being repaid. And the remaining 1.8 trillion is owed to banks and major investors.
Evergrande's pre-sale housing involves about 3.6 million households, and the number of people involved has reached about 10 million based on the average of three people per household.
Theoretically, these families should be able to be protected, because in terms of regulations, the guarantee has been clarified, after all, Evergrande may delay the construction period or lack of funds to delay the construction.
But now that bankruptcy is enforced, these families who need to secure their homes should be given priority, which is already a prescribed procedure.
The crisis may also be an opportunity for the company to reform and lay a solid foundation for its future development, so despite the short-term pain and uncertainty brought by bankruptcy, it may also be the only way for Evergrande to recover and thrive.
For Evergrande, the declaration of bankruptcy is not the end, but the beginning of a fresh start, and as the liquidation process unfolds, the company has the opportunity to reflect on its past mistakes and reinvent itself through restructuring and rebuilding.
Despite the difficulties and challenges, the bankruptcy declaration has also brought new possibilities to Evergrande, perhaps after the baptism of bankruptcy, Evergrande will be able to get rid of the burden of the past, rejuvenate itself, and seek a more sustainable development path.