The Hong Kong High Court formally ruled that China Evergrande was liquidated. In other words, Evergrande can enter bankruptcy and liquidation. Why did Evergrande go bankrupt and liquidate?
There is only one direct reason:Creditors have no hope. When these domestic and foreign creditors peel off Evergrande's ledgers, the rest are basically junk assets, and there is not much value left. If it is not cleared, Evergrande's assets will only depreciate further, and no one even wants waste. Evergrande wants to take the route of debt restructuring and come back from the dead, and there is no possibility.
Taking advantage of the fact that Evergrande still has some valuable things, the major creditors hurriedly divided it. Don't think about recovering all the lost investments, you can get back as much as you can. Evergrande has long been dead, and it was only today that the Hong Kong High Court announced its death. From now on, it's time to prepare a funeral about Evergrande's era.
But this funeral will not end in the short term, but a long process, because it involves the delivery of the building. Before the task of "ensuring the delivery of the building" is completed, Evergrande cannot cover the coffin and put it into the ground. For a long time to come, Evergrande will continue to exist until the full delivery of the guaranteed delivery of the building. Let's review how Evergrande got to where it is today?
The fuse of Evergrande's thunderstorm originated from a special dividend. On July 15, 2021, Evergrande announced that it would hold a special dividend plan on July 27, 2021, intending to distribute 10.1 billion yuan to shareholders in the face of huge losses. As soon as this news was issued, Guangfa Bank immediately took action to apply for pre-litigation property preservation, and the court froze Evergrande 13.2 billion cash. As a result, Evergrande opened the curtain of thunder.
Immediately afterwards, Evergrande financial management exploded, and the first merchants and builders sued one after another, freezing Evergrande's assets, and unfinished buildings also emerged. When it came to this point, the whole Evergrande mess slowly surfaced.
First, more than 500 billion commercial bills are owed to the best businessmen.
Second, it owes nearly 2 trillion yuan in loans to major financial institutions.
Third, overseas debts have exploded, and it is impossible to repay principal and interest.
Fourth, by illegally misappropriating the down payment for the purchase of houses and the cash flow of the subsidiary, Evergrande Property was taken away by Evergrande Group for 13.4 billion.
Fifth, the Evergrande Song and Dance Troupe was sent to the hot search.
Sixth, Xu Jiayin's wife Ding Yumei donated money and fled, and her eldest son was nowhere to be found.
Seventh, Xu Jiayin and his youngest son Xu Tenghe**.
During this period, Xu Jiayin also tried to save himself. On the one hand, it sold mansions and villas, and injected more than 7 billion yuan into Evergrande out of his own pocket. But in the face of a huge debt of 2 trillion yuan, this money is just a drop in the bucket. On the other hand, it is too late to sell Evergrande's high-quality assets, such as Evergrande Football Stadium, HengTen Network's equity and its office buildings, hotels, commercial buildings, etc.
Especially Ding Yumei's escape, without Xu Jiayin's planning and help, it was almost impossible. Before Ding Yumei fled, the two of them most likely discussed. Once gone, he will not return, Xu Jiayin is ready to sacrifice himself. It's just that what he didn't expect was that his youngest son Xu Tenghe also got in.
From the moment Xu Jiayin**, Evergrande's fate was basically doomed. Xu Jiayin chose an extremely undignified path, after all, someone would help him be decent. If it weren't for Evergrande's misappropriation of 13.4 billion Evergrande Property, Evergrande Property would definitely be a high-quality asset. At that time, Hopson Development had planned to acquire Evergrande Property for 200 billion**. But who would have thought that a company that specializes in collecting property fees and making steady profits will also be hollowed out by Xu Jiayin.
The mess left by Evergrande can't be cleaned up. The overseas debt has been abandoned, and Xu Jiayin can't pay it back, and no one will pay it back. Domestic debt is also difficult to recover, because most of the funds are used by Evergrande to buy land and become part of the land finance. The land that has not yet started construction has been forcibly repossessed and cannot be remortgaged. The real value is actually Evergrande property, Evergrande nursing home, Evergrande hotel and Evergrande's office buildings, and Evergrande's unfinished buildings, which are all negative assets, and ultimately rely on ** to "ensure the delivery of buildings".
The direct impact of Evergrande's liquidation is that Evergrande Automobile is likely to be finished. CEO Liu Yongzhuo has been arrested, Evergrande Automobile's debt ratio is as high as 99%, there is no net worth at all, and it is also an empty shell, no one can catch Evergrande Automobile, the hole is too big.
The verdict of the Hong Kong High Court is like a death notice, telling everyone:Evergrande is dead, I hope you know.
Guaranteed delivery of the building is the last hope of all the owners who buy Evergrande's unfinished buildings, and it is also the only air cushion to hold up the wounds of the times. Xu Jiayin wants to go down in history, after all, it will be stinking for 10,000 years.