Evergrande ushered in the moment of life and death, Xu Jiayin may have nothing, and the company's future is full of uncertainties
The time limit has arrived, Evergrande will face a "moment of life and death", and this time, Xu Jiayin may completely lose everything.
Actor "Xu Jiayin, before **, was still a drama spirit. In the past 20 years in Evergrande, Xu Jiayin has always been a responsible entrepreneur and full of gratitude to his motherland and society. Evergrande can dedicate to it at any time as long as it wants, but in the end, it will leave behind more than 20 trillion in debt and a large number of unfinished buildings.
After the thunderstorm, Xu Jiayin still went his own way, claiming that he could do nothing, but Evergrande's investors could not have nothing. In the end, the investor didn't get anything, but he secretly transferred billions.
However, the price to be paid is to be paid after all. Not only Xu Jiayin was arrested, but even all the shares held by the Xu family may be zero.
The latest news is that the Hong Kong High Court will hold a hearing on China Evergrande's bankruptcy petition on January 29. Since June this year, Evergrande has been postponed seven times in a row due to the bankruptcy of creditors, and this time, the date has been determined, and there is no possibility of extension. This means that Evergrande's "moment of life and death" will come on Monday.
To avoid bankruptcy, Evergrande needs to come up with a reorganization plan that is acceptable to both the court and creditors. However, with the arrest of Xu Jiayin, the founder of Evergrande Group, and other high-level executives, Evergrande fell into bankruptcy crisis, and sales are still sluggish. Evergrande wants to turn the tables on Evergrande, which is almost impossible.
With Evergrande's current situation, how could creditors think that Evergrande would be able to make a comeback after the reorganization? Therefore, I think it is difficult for Evergrande to give a convincing solution, and it is very likely that it will eventually go into bankruptcy and liquidation.
In fact, since Xu Jiayin**, Evergrande's fate has been doomed. The reason why Xu Jiayin and others have not been done is that Evergrande's debts have not been paid off, and there are still a lot of projects that have not been completed, all of which were signed by Xu Jiayin himself.
All of Evergrande's projects have been taken over by other places, so it doesn't make much sense for them to stay here, it's more to solve their own debts. Whether it is a reorganization or bankruptcy, a market-oriented operation should be adopted in accordance with the wishes of the debtor.
Since the restructuring of overseas bonds is currently underway, there is a high probability of bankruptcy. Foreign creditors are watching their property being seized in China, so it is better to settle it as soon as possible and make more money.
Evergrande's fate is not the first time it has happened, at that time, HNA owed more than one billion debts, at the beginning, they did not hesitate to sell their property in order to repay the debt, but as time went by, this huge gap has been unable to make up. Subsequently, Chen Feng, the founder of HNA Group, and many other senior personnel. Soon after, Hainan Airlines faced the fate of bankruptcy and reorganization, and was acquired by Fangda Group.
Although Xu Jiayin is the queen, he is still the largest controlling person of Evergrande. If he is really going to go bankrupt, then all the equity in Xu Jiayin's hands will be zero. What's more, once Evergrande is confirmed to be suspected of making false accounts, then Xu Jiayin is likely to be prosecuted. Even overseas property will be disposed of.
Throughout the history of Evergrande, the debt has expanded, and the dividends are huge, among which the biggest benefit is Xu's, who has obtained 50 billion yuan alone and has become the largest shareholder in the real estate industry. There are not only dividends, but also high interest, from which the Xu family receives high profits, and Evergrande pays for the high borrowing costs. To put it simply, Xu is trying his best to hollow out Evergrande.
The so-called "successful entrepreneurs" and "China's No. 1 philanthropists" are all built on debt. If Xu Jiayin really does a good job in business, then he should do what Cao Dewang said about "respecting heaven and loving people", don't be ambitious, don't be insatiable.
With more than 20 trillion yuan in debt, this is the largest debt record in the history of China's private companies, and at the same time it is a huge landmine. Evergrande's failure is an experience that every company should learn from.
As the saying goes, sow melons and get melons, and plant beans and get beans. I think there will be a clear conclusion about the direction of Evergrande in the near future.