Don't be Xu Jiayin second, Sun Hongbin resists the pressure! Sunac once eliminated more than 30 billion debt!
Persuaded Jun Mo to be Xu Jiayin, and advised Jun to be Sun Hongbin.
Real men should dare to be bold, able to flex and stretch, in the face of pressure, do not evade, do not retreat, and must withstand things.
Sunac crossed the robbery, Sun Hongbin is becoming a new example for other lightning real estate developers.
In fact, there are many real estate companies that have exploded lightning, such as Sunshine City, Kaisa, R&F, Jianye, Huaxia Happiness and other large real estate enterprises, but the chairman who was arrested is a very small minority. For the country, these housing enterprises have both historical reasons and practical factors. Real estate is related to the national economy and people's livelihood and social stability, as long as these real estate owners honestly guarantee the handover of the building, do everything possible to pay off debts, do not flee overseas, do not transfer assets, personal safety is still guaranteed.
However, Xu Jiayin really offended the anger of the public. He is the one who has the most debts, he is the one who transferred the assets, and it is his wife who fled overseas, leaving behind millions of rotten buildings, more than two trillion debts, and he actually wants to run away. If Xu Jiayin was allowed to run, the impact would undoubtedly be extremely bad. Xu Jiayin can run, then other thunderous real estate chambers will not also run? Will this demonstration effect spread like a virus? From the perspective of maintaining stability, Xu Jiayin must be arrested, and if he does not catch it, it is not enough to anger the people, and if he does not catch it, it is not enough to deter other debtors!
To say that killing chickens and monkeys, Xu Jiayin took the initiative to be the chicken.
Sun Hongbin offers another viable solution for other real estate developers. Sunac's overseas debt restructuring plan was approved by the Hong Kong High Court. Why Hong Kong? Because real estate companies such as Evergrande, Sunac and Country Garden have adopted offshore equity structures. Their company is registered overseas, and through this overseas shell company, they have borrowed a lot of foreign debt from overseas. But their physical business is also domestic, which is very detrimental to overseas creditors to recover debts. Overseas creditors have little way to reach out to their domestic assets, and domestic assets are also first required to "guarantee the handover of buildings", giving priority to paying employee salaries and repaying bank debts, and overseas debts have a lower priority.
However, the structure of overseas debt is relatively simple, such as domestic debts have supplier arrears, builder arrears, bank arrears, financial arrears, etc., the composition is complex, and it is not easy to dispose of the building by guaranteeing the delivery of the building. Overseas bonds are relatively simple, mainly structural arrears, and many overseas financial companies have purchased US dollar bonds issued by Sunac. Of course, there are also many domestic companies that go to Hong Kong to buy Sunac's US dollar bonds in pursuit of better yields.
It is easier to talk about gathering these creditors and having a meeting. Sunac's overseas debt restructuring plan was approved with a super high approval rate of 99.75%, why is this so? A core reason is that Sun Hongbin has unlimited liability guarantee.
If Sunac goes bankrupt, Sun Hongbin himself will bear unlimited joint and several liability. This money will not be paid, and Sun Hongbin's assets will also be emptied. In terms of specific operations, there are two main ways: First, debt-to-equity swaps. It's the old trick, the money can't be paid, but Sunac still has shares that can be used to pay debts. The second is to borrow new debts to repay old debts. I owe you money now, I can't pay it back, but you can lend me a new amount of money, I pay off the old debt, and the interest rate can be a little higher. In essence, it is to extend the repayment cycle and replace the old one with a new one.
The total amount of this foreign debt is US$9.754 billion, of which US$2.75 billion is a forced debt-to-equity swap and US$1 billion of convertible bonds converted into equity in Sunac Services at HK$13.5, which is US$778 million after discounting. The debt-to-equity swap alone helped Sunac reduce its debt by US$4.5 billion, equivalent to more than RMB32.8 billion. Sunac Services are the same as Evergrande Property, they are cash cows, and holding the equity of Sunac Services is not afraid of not receiving money back, but it is only a matter of time. Sunac Services' annual operating income exceeds 7 billion, and it is relatively simple to collect property fees and make money.
Many people have a misunderstanding of overseas debt, thinking that overseas debt is owed to foreigners, but it is not. In Hong Kong, it is mainly mainland companies that buy foreign debt. Like Evergrande's issuance of overseas bonds, often the biggest holder is the Xu Jiayin family. Lend money to the company at high interest, and then eat the company's interest, the liabilities are the company, and the interest is their own. If the company goes bankrupt, it has to pay its own claims first.
Sun Hongbin's set of debt transformation model is very worthy of learning and reference for other real estate developers. Personal unlimited guarantees, debt-to-equity swaps, new debts for old debts, and time for space can greatly reduce the debt pressure of housing enterprises. This is like, you owe 1 million, you have no money to pay it back temporarily, let the owner give you a grace period of 3 to 5 years, you work hard, pay 220,000 a year, repay 1.1 million in 5 years, and the extra 100,000 is interest. This way, you will be much less stressed. Creditors are also acceptable.
Sunac's assets are relatively high-quality, with most of the projects located in first- and second-tier cities, and few projects in third- and fourth-tier cities. As long as the house can be sold slowly, Sunac can still slowly return to blood. Sun Hongbin does not have to run, Sunac will not go bankrupt, every year there is a sum of money to pay off debts, and the guarantee of handover can be gradually promoted, belonging to the worst environment, as far as possible to do: "Hello, hello, hello everyone." ”
After the overseas debt is resolved, Sunac can also concentrate on domestic business, after all, the foundation still lies in the domestic real estate business.
Lao Sun is a man who has been in prison. At that time, he was sent to prison by Lenovo, and after he came out, he took the initiative to confess to Liu Chuanzhi, where he fell, he got up, and he was also a tough guy. Xu Jiayin evaded responsibility, Sun Hongbin carried it to the end, and different choices will inevitably face different endings.
Persuaded Jun Mo to be Xu Jiayin, and advised Jun to be Sun Hongbin.