Xu Jiayin's finale! Evergrande is coming to an end, these types of people need to be vigilant, the situation is dangerous!
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Preface. Financial Times, January 29 -- China Evergrande finally could not escape the end of bankruptcy, and China Evergrande finally could not escape the end of bankruptcy after several postponement of litigation requests. CCTV Voice of the Greater Bay Area, Hong Kong media said that the Hong Kong Supreme Court has issued an order for bankruptcy protection.
According to the Hong Kong Judiciary Officer, the Hong Kong High Court is scheduled to hold a hearing on the bankruptcy case of China Evergrande at 9:30 a.m. on January 29, 2022, which will be held in the Hong Kong Intermediate Court.
At around 10:30 a.m., according to CCTV News, the Hong Kong court has formally ruled that China Evergrande's reorganization plan has no real results and is facing a serious cash shortage.
In fact, Xu Jiayin's life can be said to be both dramatic and tragic. There is no doubt about this, he has no possibility of turning over, and his end is doomed.
While Xu's future is clear, on a broader scale, the knock-on effects of Evergrande's collapse have put some groups at risk. Why did Xu Jiayin end up like this? The reason for this is really intriguing.
Xu Jiayin is ambitious.
In the shopping mall, Xu Jiayin is like a sword out of the sheath, always a high existence. The name China Evergrande Group, like a shadow, is tightly clinged together, symbolizing power, wealth, and boundless passion and desire.
With the sanction of the law, this once prosperous empire began to crumble, and people began to re-examine this once powerful businessman, who came out of **, how did he make a comeback?
Opening Xu Jiayin's brilliant career map, we can see his perseverance and tenacity, and the footprints of struggle. Although he was born in rural Henan, he still firmly embarked on the path of studying; Starting from the metal school in Wuhan, he was like a butterfly, taking root in the metropolis of Guangzhou.
His steps are like stepping on the tide of time. His success does not depend on luck, but on a keen sense of the market and a keen grasp of the crisis. Under his leadership, Evergrande Group has developed from a little-known local real estate company to a well-known international well-known enterprise in China.
However, with the rapid expansion of Evergrande, Xu Jiayin's ambitions were also ignited in this fire.
From 1996 to 2004, he pursued a small-scale, low-cost development strategy. From one program at the beginning, by 2004, he had implemented dozens of programs in the country; Since then, Evergrande Group has become one of the ten most competitive real estate companies in Guangzhou and one of the most competitive real estate companies in Guangdong Province. In this period, the grand development strategy is shining brightly.
Since 2004, Evergrande has been committed to expanding its business scope and brand, and has expanded the company's land area to several million square meters. Through strategic cooperation with world-famous brand enterprises, the quality level of the enterprise has been improved, the price of the enterprise has been improved, the marketing efficiency of the enterprise has been improved, and a new road has been opened up for the standardized operation of the enterprise.
In 2007-2009, Evergrande Group focused on the national layout and carried out comprehensive publicity through high-standard operation methods. It was at this time that the company's cash flow began to have problems, and its net borrowing ratio was as high as 72773 per cent, while its asset-to-debt ratio rose to 96 per cent.
In order to solve the financial difficulties, Xu Jiayin bravely went against the grain, determined to rejuvenate the huge team of Evergrande Group at the moment of life and death. In 2008, he won with 1The $35** acquisition of Chow Tai Fook, Kuwait Investment Authority (KIA), Deutsche Bank and Merrill Lynch (Merrill Lynch) This is also the reason why Evergrande was able to survive its first crisis. It is precisely because of this that Xu Jiayin will not go abroad recklessly and be a pioneer in cross-industry development.
Since then, he has continued to explore the potential of various aspects such as finance and sports activities, with the hope of building a diversified industrial empire with all-round advantages. In this process, he continues to use the power of capital to help the company become bigger and stronger through leveraged buyouts and capital operations.
Although such a high-risk development mode has achieved remarkable results some time ago, it has also laid huge hidden dangers for Evergrande's future development.
Just when Xu Jiayin was thriving in the mall, he probably didn't expect that a righteous fist was quietly approaching her. The rules of the mall are brutal, but fair. Once the phenomenon of "emphasizing profits over law" appears, it will inevitably be severely punished by law. Xu Jiayin's illegal actions are undoubtedly the evil consequences of his corporate conquest road that ignores the bottom line of the law.
Evergrande went bankrupt and liquidated.
The reason why Evergrande wants to declare bankruptcy starts more than a year ago, and Jiasheng Global submitted a liquidation application in the Hong Kong High Court at the end of June 2022, involving an amount of 8HK$62.5 billion in debt.
The hearing will be held on August 31, 2022. Even at this time, Xu Jiayin still hoped to save more Evergrande, so he used a "procrastination trick" and promised to postpone the plan until next year's January 29.
In fact, both the court and creditors have provided ample time for Evergrande, which is about to enter bankruptcy proceedings, hoping that he can make a comeback, use his own strength to fill this huge gap, and pay off all debts.
But the problem is that Evergrande, which Xu Jiayin built single-handedly, is a super big deficit. According to Evergrande's accumulated liabilities at the end of 2022, it reached 24 trillion yuan, but its total assets are only 174 trillion yuan, has reached the verge of bankruptcy. The most important thing is that Xu Jiayin said that he would "not give up", but in fact, he still had a silent technical divorce with his wife Ding Yumei, and the purpose is self-evident.
Therefore, the creditors finally saw through the essence of Xu Jiayin: it is simply impossible to pay off their arrears completely. That's why they will take advantage of the fact that Evergrande still has some assets left, and quickly sell this piece of land to avoid more losses in the future. At the same time, a ** official of the Hong Kong High Court also expressed his attitude that Evergrande has not come up with any valuable reorganization plan so far, and the case has dragged on until now, which has given them enough time.
In other words, Xu Jiayin, you are a good choice, but you have not made any achievements.
Therefore, the only thing he can do is to sell all his property to pay off his debts! Of course, Evergrande's management is also very reluctant to see Evergrande about to go bankrupt: such a good job, go to ** in the future? Evergrande is in a very bad situation now, and no one knows if other companies will accept them in the future.
How much will the bankruptcy of China Evergrande affect these groups?
First of all, it should be noted that after the commencement of bankruptcy proceedings, China Hengke Company can no longer engage in other operations, nor can it dispose of its own assets and **, which must be approved by the Hong Kong High Court. In such a case, the court should take into account the wishes of the majority of creditors and take into account the principles of fairness and justice. In this regard, Huang Lichong, co-founder of Synergy Strategic Management, pointed out that once a compulsory liquidation order is issued by the court, all legal acts of the company, including all legal acts of the company, will cease until the court approves it.
In the course of the settlement of debts, all activities must be forcibly suspended, except for litigation approved by the court, so that the liquidator can recover the property of the "variable cash company" to the greatest extent possible, conduct a thorough investigation of the company's operating conditions, adjudicate the claims of each creditor, and draw up a fair and equitable compensation plan accordingly for distribution to all creditors.
When all the liquidation work is satisfactorily completed, the liquidator can ask the court to relieve him of his duties and formally dissolve the company. Among them, our focus is:
First, as home buyers, can they safely protect their legal homes?
Second, can most workers maintain a stable salary?
The above problem is just a small problem, there is a more serious problem, especially as a guarantor of a bank loan, what should they do in the face of such difficulties? When we have such questions, to unravel the fog and explore the crux of it, we will get a satisfying answer. Below, we discuss these three levels in detail.
First of all, this time, the Hong Kong High Court initiated a clean-up order against China Evergrande, a Hong Kong-listed company, China Evergrande.
As we all know, China Evergrande and its subsidiaries control the property of many countries, so their property has a strong connection. For this reason, although there is some security for property in the home country, there is special security for employees and some creditors who buy houses.
Second, let's take a look at how the entire bankruptcy process actually works. First of all, the list of creditors, debts and assets is put together, and then all the property is properly valued, and then a public auction is held, and the proceeds will be used to pay off the bankruptcy liquidation expenses, employee salaries and charity**, and the rest of the money will be returned to the creditors. Generally, the repayment ratio implemented depends on the company's overall assets.
Third, how to ensure the effectiveness of the implementation of state-owned capital? As everyone knows, some property in our country is not arbitrarily expropriated, but is restricted by laws and regulations, such as paying taxes on land and the people.
In terms of protecting the interests of the people, the state usually has relevant guarantees, such as ensuring that the house is delivered on time, and that those taxes can buy a pre-sold house.
Therefore, in order to ensure the security of people's property, the State will strive to ensure that people buy real estate, so as to achieve special protection for certain people.
Conclusion. A difficult road is finally coming to an end, and I hope that Evergrande Group can clean up these companies smoothly in a good order. There is no doubt that both Xu Jiayin and those investors who are waiting for returns will be shocked by this scene.
In such an era of social responsibility, each of us should be vigilant, strengthen our awareness and understanding of investment risks, and avoid repeating the mistakes of the past.
At the same time, the first department should also strengthen the supervision of the real estate market, improve the transparency and transparency of the real estate market, so that the rights of various participants can be effectively protected, so that they can better support the overall strategy of sustainable and stable economic development across the country. Only in this way can we build a richer and more stable social structure that will provide a stronger impetus for the great rejuvenation of the country.