Who bought these "bad debts"?
Before the Spring Festival, a non-performing asset auction rushed to the hot search: the total amount of the largest private stainless steel production enterprise in southwest China was 1235 accounts receivable of 9.5 billion were fiercely bid by 4 bidders for 31 rounds, and finally sold for 210,000, with a premium rate of 615%。
For the least "valuable" accounts receivable in non-performing assets, such a premium rate is very rare, who cares so much about these "bad debts"? Can it be cleared in the end?
3 years, 12 auctions, 0001% offThe main body of this auction: Sichuan Southwest Stainless Steel Co., Ltd. was established in 2004 and is the largest and only private stainless steel production enterprise in southwest China. It was once ranked among the top 500 private enterprises in China, with assets of 8.2 billion yuan at its peak, and sales revenue of 12.5 billion yuan in 2011. However, just when it is fully engaged in the construction of the second phase of the 700,000-ton-a-year stainless strip annealing and pickling production line project and the hot-rolling technical transformation project, it is ready to show its ambitions. The market environment has changed greatly, and there are multiple reasons such as the sharp rise in raw materials, steel and overcapacity, and for a time, many iron and steel companies have gone bankrupt.
In 2018, Southwest Iron and Steel was declared bankrupt and liquidated. Its 35 accounts receivable have been listed for auction by the manager since January 2021, and the starting price of the first time is 10% of the total amount of accounts, that is, 12.9 billion, no one cares. Until this transaction, the non-performing asset has been listed on Ali Assets for 3 years, and after 12 auctions, no one has registered, and the starting price has dropped all the way to 130,000.
At the beginning of the new year of 2024, it finally ushered in the favored eyes of 4 bidders, and after 31 rounds of bidding, it won 2180,000 ** transactions, equivalent to 0001% off.
This incident once again confirms the classic quotation of the non-performing asset industry: there are no assets that cannot be sold, only those that cannot be sold.
Can**? The industry is noisyAlthough the ** is very low, in the non-performing asset industry, accounts receivable are not worth much.
"The accounts receivable we have encountered are generally valued at 0. ”The project manager of one of the five major AMCs said to the headlines of non-performing assets: whether the transaction has really happened, whether there is a valid certificate, whether the purchaser's qualification and credit are reliable, as long as a link is not verified in place, it will lead to a loss.
Compared with collateral or physical assets, such assets are called "intangible assets", including trademark rights, patent rights, etc., which are difficult to dispose of.
Therefore, the accounts receivable of Southwest Iron and Steel can be fiercely contested this time, which is beyond the expectations of industry insiders. Although the transaction price of 210,000 is not high, whether it can be ** or not, whether it is stepping on thunder, everyone has different opinions.
Some people in the industry believe that most of the above-mentioned arrears companies are in a state of survival, and as long as they recover a sum, they will make a steady profit. However, it was also argued that, according to the bidding announcement, the accounts were flawed, some of the debts did not have "IOUs", some of the amounts were inaccurate, and some of them may have exceeded the statute of limitations or the statute of limitations. And among these 35 companies, many of them are in the same east as Sichuan Southwest Stainless Steel, and the "Daodao" is difficult to explain, so it is very difficult to recover.
The controversy in the industry is actually the charm of non-performing assets: "If it is arsenic, it is my honey".
Of course, there is also a theory: the bidder is one of the 35 companies that owe money, buys its own creditor's rights, and the debt is also written off.
Due diligence valuation is the key to unlocking the "treasure".
Most of the non-performing assets of non-gold enterprises are accounts receivable, the amount is huge and increasing year by year, for the non-performing asset industry: the scale is huge, and it is difficult to pan for gold. But it's not without success stories. In 2021, the manager of Hangzhou Lin'an Jiuzheng Lighting Electric Appliance publicly auctioned 14 related to Lin'an Jiuzheng Lighting Electrical Appliance to auction the receivables of a number of judgment debtors, all of which started at 1 yuan, and all 14 targets were sold, with a minimum of 7 bids and a maximum of 400 bids, and the highest transaction price reached 57,301 yuan.
In addition, according to the data on the front page of Ali Auction, the first-auction transaction rate of intangible assets including accounts receivable is 558%, with a total turnover rate of 699%, with a premium rate of 245%。
Since someone buys it, it means that there is value. It's just that due diligence and valuation are difficult problems in the disposal of accounts receivable, but once the key is found, it will become a source of huge profits.
**: Distressed asset headlines.