Evergrande's "serial" finally ushered in the end of the whole drama. According to the Hong Kong Judiciary**, on January 29, the High Court of Hong Kong held a hearing on a winding-up petition against China Evergrande Group.
The judge formally issued an order requiring Evergrande to liquidate and suspend the trading of Hong Kong stocks China Evergrande, Evergrande Automobile, and Evergrande Property intraday.
In the end, Xu Jiayin and his Evergrande still failed to survive this year's Spring Festival.
Some people may wonder, what is a winding-up petition?
To put it simply, the company owes a lot of debts, and the creditors can't wait any longer, so they file a winding-up petition with the court, asking the court to issue a "winding-up order".
If the winding-up petition is passed, then the debtor will have to "smash the pot and sell the iron", sell the assets, and repay how much money is paid, and the creditors will "share the meat" together, which is equivalent to bankruptcy liquidation.
However, Evergrande's total assets are currently about 174 trillion yuan, with a total debt of 238 trillion yuan, which is a serious insolvency, is also the largest "bankruptcy case" in China's history.
At the same time, this means that at that time, some of Evergrande's creditors will definitely be lost and will not be able to get the money, of course, whether Evergrande can pay back the money or not, Boss Xu's end is already doomed:
The iron rice bowl is soft to the hand, the sewing machine is soft to the foot, the assets are zero, and there is really nothing.
In the Evergrande thunderstorm in 2021, Xu Jiayin once spoke publicly:
"I can have nothing, but investors in Evergrande Wealth can't have nothing. ”
However, although Boss Xu's words are very uplifting, the operation is not ordinary.
In August last year, Evergrande Group filed for bankruptcy protection in the Manhattan court in the United States, and only one month later, the cunning boss Xu was imprisoned.
Why don't you catch it early or late, but at this time?
The main reason is that Xu Jiayin has gone too far, and he has exceeded the bottom line that can be tolerated.
Boss Xu's Evergrande borrowed a lot of dollars abroad, but you, a domestic company, can't borrow money with your mouth, so you must have a mortgage and a guarantee.
And Evergrande has not much else, that is, there are many houses, so Boss Xu waved his hand and mortgaged Evergrande's house to our bank, and then the bank issued a guarantee to borrow from the outside world.
Everything was ready, and Evergrande successfully borrowed US dollars from abroad.
And in the process of borrowing dollars, Xu Jiayin also has a high trick:
Evergrande issued high-interest dollar bonds abroad, although the yield of this bond was considerable, reaching 1375%, but ordinary people can't buy it, and many of them go into the hands of Xu Jiayin's family members.
To put it bluntly, Xu Jiayin took the money from the company's account to his pocket in this way.
So now the question is: the money is gone, what should Evergrande do when the time comes?
It's very simple, spread your hands and directly say "I don't have any money", just file for bankruptcy protection, you go to my guarantor and ask for money.
But the guarantor can't come up with the money:
Behind the houses mortgaged by Xu Jiayin are thousands of buyers who have emptied their wallets, who dares to auction these houses and repay them to overseas creditors?
Therefore, Xu Jiayin's application for bankruptcy protection in the United States is almost equivalent to holding a loudspeaker and shouting "I want to run away", and if he doesn't make a move, he will really "evaporate from the world".
Evergrande's liquidation, of course, is most concerned about those creditors, and there are two main types that are most affected:
The first is Evergrande's home buyers.
According to the financial report data disclosed by Evergrande, as of the end of 2022, it owes 24 trillion, of which 720 billion is home buyers' purchase money.
In other words, most of these buyers have not yet delivered their houses, and in the future Evergrande will be liquidated, who will take over these houses and help them build their houses is the top priority now.
Of course, ensuring the delivery of the property is a task for people's livelihood, and buyers do not have to worry too much, even if Evergrande is liquidated, this part of the debt must be put in the first place.
The second category is the large and small businessmen in the upstream and downstream of Evergrande. In July last year, Evergrande proposed a debt restructuring plan, and once calculated an account for creditors, if it is liquidated, then the creditor's ** rate is only 34%。
It means that if Evergrande owes you 1 million, then you can only get back 340,000 yuan.
And this is only an expectation, and in the end, it will really come to the stage of liquidation, and it is difficult to say how much money the creditors will get by then.
The most ironic thing is that this is no longer so unimportant for some ** businessmen who hold Evergrande's debt:
Due to the drag of Evergrande, many ** businessmen are already difficult to protect themselves, and they may have to leave one step ahead of Evergrande.
For example, Shenzhen Guangtian shares hold 32 overdue commercial bills from Evergrande4.7 billion yuan, only one step away from bankruptcy rectification;
Another example is the building decoration company Gold Mantis, which is owed 4.1 billion by Evergrande, which is also short of funds.
When the building collapsed, whether it was the upstream and downstream businessmen, or the countless buyers who bought the Evergrande house, they all became the "victims" who were dragged into the water by Xu Jiayin, and there were words of suffering.
In August last year, the news of Xu Jiayin's "technical divorce" spread far and wide, and it was rumored in the market that Xu Jiayin transferred a large amount of property to his wife Ding Yumei to escape debts by divorce.
But we all know the rest of the matter, only 1 month later, Boss Xu liked to mention the sewing machine technology refresher class and sang "Iron Window Tears".
But here the problem arises:
Xu Jiayin was arrested, but his ex-wife Ding Yumei has disappeared with a huge amount of wealth, does that mean that Xu Jiayin has taken all the debts on his back, and the property taken away by his ex-wife will be irretrievable?
The answer should be no, and the so-called "technical divorce" is a joke in itself.
At the beginning, Xu Jiayin's "saucy operation" was carried out during the marriage, which means that Xu Jiayin's debt, ex-wife Ding Yumei, also scored half of it.
Now that Evergrande has been issued a "winding-up order" by the Hong Kong court, then whether it is overseas or domestic, creditors will demand that it bear the liabilities that it should bear.
Judging by Evergrande's debt volume, the former richest man behind bars should understand what it really means to "have nothing".
Write at the end:
Regardless of whether Evergrande is liquidated or not, for the people, the most important thing is to "ensure the delivery of the building".
It is not only an economic issue, but also an important livelihood issue related to social stability.
Kunpeng Project