Kunpeng Project
I really didn't expect that after 7 postponements, Evergrande was really going to liquidate, and the buyers wanted to cry without tears. The Hong Kong High Court announced on January 29 that it had officially issued a winding-up order to China Evergrande Group, with not many words, the matter is really not small, it has dragged on for more than a year, it has not been cleared in the morning, and it has not been cleared in the evening. What is liquidation, why is Evergrande liquidated, and what will be the impact once it is liquidated? Let's take a closer look.
The so-called "liquidation" of the Hong Kong court is called "bankruptcy" in the mainlandIt is impossible for an enterprise to go bankrupt casually, the most basic condition is insolvency, Evergrande's net debt exceeds two trillion, how to meet the standard, so in June 2022, some creditors who can't wait apply to the Hong Kong court for Evergrande to liquidate.
Who is this creditor who grabbed the head, and how much does Evergrande owe him? The company that applied for the liquidation of Evergrande, called Jiasheng Global, is registered in Samoa, and the actual controller behind it is the Hong Kong Lian family. In 2021, Lianjia will take out 7500 million investment in Evergrande RV Bao, not long after the money was given, Evergrande thundered, and now even the principal with a total of more than 800 million, Lian Haomin, the new generation of heirs of the Lian family, has publicly stated many times that he invested the money in Evergrande, he really looked away and paid the tuition.
More than 800 million tuition fees are really not cheap, but for the Lian family, these money is nothing, although the Lian family is not very famous, but in Hong Kong's rich circle, it also occupies a place, Lian Haomin's father Lian Zhuozhao, known as the "gambling king on the high seas", in the early years of Hong Kong's most luxurious and famous five-star luxury cruise ship "Neptune", is the assets of the Lian family. Not to mention whether the family lacks these 800 million, Evergrande's liquidation is not much good for the debts of more than 800 million yuan, and it is optimistic that it would be good to get back a fraction.
I have to say that Hong Kong is a society governed by the rule of law, and Hong Kong people also pay attention to the law, no matter what you do, I will apply for liquidation first, and then the court will see this situation, so I can only find Jiasheng Global and Evergrande Group, and persuade each other with good words, and Lian's family said, don't rush to apply for liquidation, first see if Evergrande has a better debt resolution plan.
Evergrande Group does not want to go bankrupt, based on reason, the tug of war began, Evergrande cried and told the court, you see, my overseas debts are still being restructured, and the cases have been prepared in the US courts, and there is still hope for success in suspending the liquidationIn this case, the court withstood the pressure and made 7 extensions for Evergrande, but by January 2024, the court will no longer have any reason to help Evergrande.
The winding-up order has been announced, the raw rice is cooked and matured, what debt restructuring, what is the delivery of the building, Evergrande has to stop everything at hand to make way for bankruptcy liquidation, so the question is, Evergrande is bankrupt, what will be the impact?
First of all, the biggest impact is Evergrande's ** businessmen, the financial institutions that lend money to Evergrande, and the owners who buy Evergrande real estate.
In the past, Evergrande's debt was slowly resolved, one of the reasons was Xu Jiayin's reluctance, the land bought for 100 million yuan was now sold at a discount of 50 million, which was really painful, all kinds of reluctance, and finally became all kinds of unsellable. Xu Jiayin is not like Wang Jianlin, Lao Wang brushes and discounts to sell assets, five or six discounts, and he doesn't even blink an eye. Now it's okay, Xu Jiayin doesn't have to be reluctant, when it comes to bankruptcy liquidation, there are no assets that can't be sold, only ** that can't be sold, and I can't wait to dispose of them all for you in one go. For Evergrande's creditors, there is hope to get back some of the principal, but how much can be recovered, whether it is one-tenth or one-hundredth, is completely resigned to fate, I advise everyone not to have too much hope, the hope of the province is disappointed, and the disappointment is even greater.
After the asset disposal is completed, Evergrande will become an empty shell, and the final outcome will be to cancel the enterprise and become history. Even if these creditors can't get back any more money, after the bankruptcy liquidation is over, they can no longer settle accounts with Evergrande.
Secondly, it is the impact on Evergrande companies. This time the liquidation is talking about Hong Kong-listed China Evergrande, but for other enterprises in the entire Evergrande system, there will also be a ripple, Evergrande assets are not a lot, such as Evergrande Automobile, Evergrande property, take the property company as an example, proper cash cows, but if it enters bankruptcy proceedings, these assets must be disposed of, in other words, all companies in the Evergrande system have to change owners, this is a huge earthquake, these companies will not be surnamed Xu in the future, as for the surname Li or surnamed Wang, it depends on who will take over, It's really hard to say.
The third is the impact on the Xu Jiayin family. I said it directly, Xu Jiayin may be the person who most hopes that Evergrande will go bankrupt. The company is bankrupt, and the shareholders are only responsible within the scope of the capital contribution, and Evergrande's registered capital of 3.9 billion yuan can still fill the hole of trillions, so the bankruptcy liquidation of the enterprise cannot be traced to Xu Jiayin at all, but can get rid of the responsibility of the Xu family. A few years later, Xu Jiayin may see the light of day again, there is no Evergrande in the world, and when people forget it, the Xu family will make a comeback, and he will be a good man.
In the end, Evergrande's liquidation will cause a huge earthquake in the real estate circle, and other real estate companies will tremble. Sunac has also been liquidated by creditors, will it also go to Evergrande, Country Garden's situation is a little better, but it is also insolvent. The domestic real estate circle is already a rumor, and Evergrande's liquidation is equivalent to taking the initiative to puncture the bubble, and under the violent impact, I don't know who will be the next person to fall.
The Qing Dynasty is finally coming, Evergrande has entered the countdown to life, the worst is the buyers and creditors, want to cry without tears, this is really choked by the throat of the times, which is also a disguised alarm to real estate companies with tight cash flow, timely self-help, urgent, don't follow in the footsteps of Evergrande!