After the news that the Hong Kong court officially issued a winding-up order to China Evergrande on the morning of January 29, how to deal with the 2The huge debt of 4 trillion yuan has become the focus of heated discussions in society. In this wave of liquidation, the asset size is 1Evergrande of 7 trillion faces a debt of 24 trillion under heavy pressure. Everything will be carried out in the order announced by the court, and the settlement of debts involved in the winding-up process will affect the interests of thousands of households.
Winding-up Debt Treatment Order:
With the announcement of the liquidation, the order of debt treatment has become the focus of social attention. According to the court, the debt settlement will be carried out in the following order:
1.Winding-up costs:Liquidation itself is a costly task that requires a significant amount of capital to support. Therefore, the costs of winding up will be met first.
2.Employee wages and social security:Protecting the rights and interests of employees is of paramount importance, so employee wages and social security will occupy an important place in the liquidation order to maintain social stability.
3.Tax arrears settlement:Taxation is an important part of the country's finances, so the outstanding tax will be filled to ensure the proper functioning of the tax system.
4.Debt Settlement:Evergrande has a wide range of debts, including advance payments from buyers, commercial payments, externally guaranteed debts, bank loans and overseas loans.
5.Equity Liquidation:Although the interests of shareholders are not counted in the debt, they will also be affected during the winding-up process and need to be reasonably compensated.
Types of Debts and Difficulty of Liquidation:
1.Advance payment for buyers:For home buyers, the advance payment is the most sensitive part. However, in the winding-up process, mortgage debt will be paid first, and home buyers need to be aware of this. Therefore, in the process of liquidation of Evergrande, the transfer of the project company under construction or how to continue the construction of the house under construction is more important for buyers.
2.*Commercial Payment:**As a partner of the enterprise, the payment will also be paid attention to in the debt settlement. However, it is important to pay attention to the collateral of the assets and whether the funds are sufficient after the liquidation.
3.Externally Guaranteed Debts:Enterprises may be involved in external guarantees, and this part of the debt also needs to be properly handled.
4.Bank Loans:Bank loans may be repaid earlier due to the mortgage advantage, but it remains to be seen whether the remaining funds are sufficient to cover the entire loan.
5.Offshore lending: Cross-border lending may have an impact on international financial relations and needs to be taken seriously.
Shareholder Situation and Social Concerns:
Shareholders appear to be the most injured party because they are at the end of the liquidation sequence. However, through early cash-outs and other means, shareholders may have withdrawn their investments. But the whole society will suffer a huge impact, and it will be difficult for both ordinary people and investors to stay out of it.
Social Appeal and Future Prospects:
At this critical juncture, society calls on upper decision-makers to give priority to the interests of the general public. Evergrande's liquidation is not only a business problem, but also involves the livelihood of thousands of households. Policymakers need to be fair and impartial in the process of handling debt repayment to ensure that the interests of all parties are reasonably protected.
The liquidation of Evergrande will become an important topic in the economic field, which is not only related to the future of enterprises, but also to the stability and development of the whole society. It is hoped that policymakers can handle this financial turmoil in a scientific and fair manner, so as to escort economic recovery and development.