Seeing him rise up, watching him feast guests, seeing his building collapse.
Recently, the High Court of Hong Kong officially issued a winding-up order for China Evergrande, and the once invincible Xu Jiayin finally ushered in the final ending.
In fact, as early as more than 2 years ago, after the news of the debt default came out, everyone had already guessed the ending of Xu Jiayin, after all, 2Whoever comes with the 4 trillion astronomical debt can't afford it.
It's just that I didn't expect it to last so long after the thunderstorm, and it wasn't until Xu Jiayin was arrested at the end of September last year that everything seemed to have finally settled.
Why is it saddled with 2The debt of 4 trillion yuan will be insolvent early tomorrow, but Xu Jiayin can delay it for another two years?
On 27 June 2022, Jiasheng Global, one of China Evergrande's creditors, filed a winding-up petition against Evergrande with the court.
According to the legal procedures in Hong Kong, the court hears the winding-up petition and then decides whether to make a winding-up order.
However, Evergrande then applied for an adjournment of the hearing of the winding-up petition and the court granted it, and since then Evergrande has applied for seven more adjournments, all of which have been granted by the Hong Kong court.
Many people may ask, why did the court agree to the extension, is it biased in favor of Xu Jiayin? Not really.
Because once the winding-up application is approved, it means that the enterprise will cease to operate, and then the assets will be counted, and the creditors will divide the assets and the company will be dissolved.
The court's refusal to approve the liquidation is to give Evergrande time for Boss Xu to find a way to save himself, negotiate with creditors to complete the debt restructuring as much as possible, and let the company survive.
Evergrande has tens of thousands of employees, many upstream and downstream enterprises are related, and the number of employees is an astonishing number.
It's a pity that Xu Jiayin was given a chance, but he didn't cherish such an opportunity at all. What has Boss Xu done in the past two years?
Performative resumption of work, technical divorce, all kinds of small actions show that Boss Xu has no heart to clean up the mess at all.
So it's not surprising that Boss Xu was arrested, he has already given you time and opportunity, but you don't want to be decent, so you can only help you be decent.
Xu Jiayin was able to drag on for more than 2 years, in addition to giving him the opportunity to find a way to save himself, there is also a very important reason for ensuring the delivery of the building.
According to Evergrande's latest financial report, as of June 30, 2023, Evergrande's accumulated liabilities are as high as 239 trillion, of which 6,039 are contractual liabilities800 million yuan.
The so-called contractual liabilities are the money handed over by the buyers to Evergrande to buy the house, which is expressed in the form of liabilities in Evergrande.
Most of Evergrande's projects are in third- and fourth-tier cities, and we estimate that the average price of 600,000 units is nearly 1 million houses behind 600 billion yuan.
The number of families and people affected by these 1 million houses is too large, and it is likely to cause a series of problems if they call it to stop, so they give Boss Xu the opportunity to "delay".
The original intention was to let Boss Xu solve the matter of handing over the building, but who knew that 2 years later, this matter basically only stayed in Boss Xu's words.
Some people will ask, no, Evergrande's announcement clearly said that they have handed over hundreds of thousands of suites.
However, we can see from Evergrande's debt structure that this matter is by no means as advertised.
When the news of the imminent thunderstorm came out in 2021, it was rumored in the market that Evergrande's debt had reached about 2 trillion.
In 2023, Evergrande's debt is still as high as 239 trillion, Evergrande's debt has not decreased at all in the past two years.
It can also be inferred from this that their handover work is actually not very good.
Some people may say that although the debt is not less, the debt structure may have changed. In fact, Evergrande's debt structure is unlikely to change, why?
Because after the news of the thunderstorm came out, who would dare to lend money to Boss Xu in this situation? How can Boss Xu adjust the debt structure if he has no money?
It is even more impossible to let the construction party advance funds, the large debts owed to the construction party have not been liquidated, and now they want to create new debts, and the construction party is not stupid, how can it be possible to make wedding clothes for Boss Xu in vain?
Therefore, Boss Xu is always playing tricks, and other people's patience is gradually exhausted.
One of the most concerned questions for many people is, what should be done to the owners who have not delivered their houses after liquidation?
First of all, it was said above that there may be 1 million houses that have not been delivered, which is the most important task at the moment, because it is not only an economic issue.
Secondly, for Evergrande's undelivered projects, there are actually advantages and disadvantages. For example, projects in first- and second-tier cities, or projects that have been completed and most of them can be revitalized with only a small amount of capital, after the dust settles, the delivery should be accelerated.
However, in third- and fourth-tier cities that have been severely affected by the real estate downturn, there are still projects that sell houses after building a gate, and these situations will take longer.
Of course, there is no need for these owners to be overly anxious, and ensuring the delivery of the building is one of the primary livelihood tasks at present, which is certain, but there will be a sequence when saving the project.
After all, this needs to be supported by money, and the kind of project that can be revived with a small amount of money will most likely be ranked first, and then it will be a difficult project that requires a lot of financial support.
Therefore, the problem of handing over the building must be solved, but it takes a process, and we have to be patient.