On September 28, 2023, China Evergrande issued an announcement that Xu Jiayin was taken compulsory measures on suspicion of violating the law and committing crimes. However, when Xu Jiayin first entered, many people still had great hopes for him, after all, Evergrande's debt has reached 2.4 trillion, and it involves the national economy and people's livelihood, which has reached the point of "too big to fail", and it will not be long before Xu Jiayin returns.
What these people are waiting for is not Xu Jiayin's return, but Evergrande's "liquidation". On January 29, 2024, the Hong Kong High Court issued an order to "wind up" Evergrande Group. The term in Hong Kong is called "liquidation", and in the mainland it is called "bankruptcy liquidation". It's just that there is no essential difference in the statement. Once the winding-up process is initiated, it means that Evergrande's business operations will be suspended, and the court will sort out Evergrande's assets and liabilities, and recover the shareholders' ownership of Evergrande's assets, and re-dispose of Evergrande's assets. Once it comes to this point, it means that Evergrande and Xu Jiayin will usher in the finale.
However, Evergrande and Xu Jiayin have come to this point completely at their own fault. After the Evergrande thunderstorm, the state gave Xu Jiayin a lot of time to "save himself", but Xu Jiayin shouted the slogan of "guaranteeing the delivery of the building" while secretly transferring a huge amount of money overseas, which led to imprisonment. In the face of the "winding-up order" of the Hong Kong High Court, Evergrande applied for a cumulative extension of 19 months several times, but refused to cooperate with the provision of relevant information, which eventually led to the situation of compulsory liquidation.
This move means that the full delisting of Evergrande enterprises is a foregone conclusion, and the stock market has been lost as a blood transfusion channel. Even if Xu Jiayin has high hopes and pays 1 billion yuan out of his own pocket to turn over, Evergrande Automobile has no possibility of rebirth.
Xu Jiayin is to blame, but for ordinary people, they are completely innocent, and just getting caught on the side of "Evergrande" has led to an unwarranted disaster! Therefore, after Evergrande has come to an end, the situation of these types of people has become dangerous!
1. Evergrande employees
The data shows that in addition to cars and properties, Evergrande also has 25,000 employees, and some of them have not been paid on time. However, their risk level is the lowest, because the order of liquidation and debt repayment in Hong Kong is roughly like this: employee salaries, etc., secured creditors, liquidation expenses, and unsecured creditors, so even if Evergrande does not pay wages now, employees' wages should be repaid normally after liquidation. However, many employees have bought Evergrande's wealth management and have not yet cashed it out, and the risk of this part of the money is still very large.
2. Creditors
At present, Evergrande is in a state of serious insolvency, and the debt after excluding the pre-sale of the people's house purchase money is still as high as nearly 1.8 trillion, of which about 600 billion is interest-bearing borrowing, and about 1 trillion is the material payment of various suppliers. According to the more optimistic debt restructuring plan given by Evergrande, Evergrande believes that once it is sufficient, creditors can get up to 9.34% of the principal. And once liquidated, it is clear that the real money that creditors can get will definitely be much lower than this percentage.
3. Prospective owners of Evergrande
I can only say that this group is quite helpless, once Evergrande is liquidated, it is equivalent to pushing this "mess" to the society and the country. The good news is that the liquidation is only for listed companies and their directly held assets, and has little impact on Evergrande Group's business in the mainland. But what the real situation is, to be honest, no one has a bottom in their hearts, and it is still unknown.
The ending of Evergrande and Xu Jiayin sounded the alarm for all enterprises: the so-called "too big to fail" is completely non-existent, no matter how big the enterprise, no matter how big the influence, it must be operated legally and compliantly, if it is carried out in a way that harms the country and the people, the final result will be backlashed, spurned by the people, and severely educated by the relevant departments, and finally become a sinner for the ages!