The Spring Festival is coming, many domestic companies are carrying out the work of closing and summarizing, and Evergrande, which has just experienced the debt crisis, has sent out an explosive news, the original company struggled in the debt dilemma for 7 months, and finally announced that it will usher in restructuring, what is going on?
On the night of January 26 this year, Evergrande publicly stated that due to the evaluation and analysis of the company's internal situation, it finally decided to reorganize the company to ensure the rights and interests of consumers and investors.
Generally speaking, everyone knows that the company is going bankrupt when they hear about the restructuring, but in fact, in addition to the bankruptcy reorganization, there is also a type of restructuring that is debt restructuring.
Simply put, Evergrande can't afford to pay off its debts, so it repays its debts by mortgageing the assets under its name, including but not limited to the land, real estate and equity under its name.
Bankruptcy reorganization is the complete disappearance of the enterprise, and all kinds of assets are divided, so the difference between restructuring is still relatively large.
This time Evergrande did not publicly state whether the group chose bankruptcy restructuring or debt restructuring, according to the previous Evergrande continuous land and real estate debt, this time should choose debt restructuring, that is to say, Evergrande will not go bankrupt.
In this announcement, Evergrande said that it is expected that the restructuring time will be completed in the next 6 months, that is to say, evergrande's final outcome will be announced before July this year at the latest.
In the announcement, Evergrande also rarely asked creditors to give the company a little more time so that the company could integrate assets and finally achieve debt repayment.
Even Evergrande implored creditors not to take legal action, which can be confirmed from such an attitude that Evergrande chose debt restructuring in order not to be sued to apply for bankruptcy.
It is worth mentioning that most of the debts that Evergrande can use to pay off today are real estate and equity, after all, after experiencing the land recovery storm in the fourth quarter of 2021 and the beginning of this year, Evergrande's land assets have been difficult to make other creditors feel reliable.
So can Evergrande's assets really offset all of the company's debts?
From the perspective of equity, at present, Xu Jiayin and his wife Ding Yumei's cumulative shareholding in Evergrande is about 50%, and according to the provisions of debt restructuring, the shares of the company's responsible person and who is also the highest shareholder must all be used to pay off the debt.
That is to say, once the debt restructuring is completed, Xu Jiayin and his wife will completely lose control of Evergrande.
Of course, in the announcement, Evergrande also proposed that in addition to the shares of chairman Xu Jiayin, it would also guarantee Xu Jiayin's personal assets.
That is to say, the cash deposits, real estate and cars under Xu Jiayin's name are not within the scope of the assets that are mortgaged to repay debts.
Just when people were talking about the future direction of Evergrande Group, another heavy news was exposed, it turned out that as early as January 23, that is, before Evergrande said it wanted to reorganize, Evergrande's internal director structure quietly changed.
It can be seen from the announcement that the executive director of Evergrande has become Shaun, and even the non-executive director has been replaced by Liang Forest.
It is reported that this Shaun only entered Evergrande in 2013, and has since been promoted to the position of vice president of the company, and has been responsible for Evergrande's tourism and automobile projects.
It is worth mentioning that shortly before Shaun was elected executive director of Evergrande, Hengchi Automobile ushered in the downline, and a series of behaviors can be seen that Evergrande is preparing to change from real estate and other businesses to the automotive field.
At present, Hengchi Automobile has been offline, which means that Evergrande's future business income has a new support point, but what is more surprising is that Hengchi Automobile, which has high hopes for Evergrande, not only did not usher in a sharp rise in stock prices on the day of achieving the offline, but fell by 2.33%.
On the whole, the reason is that Evergrande is too affected by the real estate business, so that investors no longer have hope for Hengchi Automobile, after all, Evergrande car manufacturing as early as 2016 has a plan, now nearly 7 years have passed, Evergrande's car has just come off the production line, for most people Evergrande's auto products have not the heat of investment.
However, in any case, Evergrande has a new performance growth point in addition to real estate, and may be able to reduce assets and liabilities through the sale of Hengchi Automobile in the future.
In the end, will Evergrande survive the difficulties, and whether Xu Jiayin will be able to revitalize Evergrande's prestige, what do you think?