Author: Xiaoming
Source: Mingjin.com
Evergrande, which always makes announcements late at night, brings all shock!
One
If the house can't be sold, just pick and choose?
Evergrande thundered in the middle of the night, and countless creditors were completely insomnia.
First, on the evening of September 22, Evergrande Group announced that the reorganization voting meeting originally scheduled for September 25 and 26 was canceled.
The reason was that sales were not as good as expected.
In other words, the Evergrande house is not easy to sell, and the restructuring meeting will not be held. This inexplicable logic made the creditors of Evergrande confused, and the incomprehension and uneasiness made the creditors sleep all night.
Two days later, on the evening of September 24, the pessimistic expectations were fulfilled, and Evergrande once again announced that the group could not meet the qualifications for the issuance of new notes because its subsidiary Evergrande Real Estate was under investigation.
A sentence that seems to have no beginning and no end, but it detonated a real thunder!
Because this basically announced the failure of Evergrande's restructuring, the repayment of 2.388 trillion yuan of debt has become a mirror.
Two
After half a year, Evergrande's debt restructuring played lonely.
At the end of March this year, Evergrande's overseas debt restructuring, which was approved after several setbacks, gave creditors some hope of returning their capital.
At that time, Evergrande announced three restructuring plans:
1. Issue new bills for 10-12 years, exchange time for space, and slowly repay debts.
2. Issue new notes for 5-9 years, linked to the equity of Evergrande Property and Evergrande Automobile, or debt-to-equity swap.
3. Combination of the first two schemes.
Obviously, no matter which plan it is, the essence is to allow Evergrande to issue new notes and repay debts by borrowing new to repay old ones.
In order to allow the debt restructuring to continue, Evergrande's creditors, even if they knew that they had suffered losses, repeatedly accommodated Xu Jiayin's troubled operations.
In April this year, Evergrande Automobile's debt of 24.8 billion yuan, Evergrande saddled, creditors turned a blind eye.
In August this year, Xu Jiayin signed an "unequal treaty" with the Newton Group, known as the "King of the Middle East", selling 27.5% of Evergrande Automobile's shares for US$500 million (about 3.64 billion yuan), and ceding Evergrande's controlling shareholders and board of directors.
At the same time, Xu Jiayin also represented Evergrande and subscribed for the newly issued shares of Evergrande Auto at a premium of 2.25 times, and Wu Nan, the owner of Newton Group, made 800 million US dollars without doing anything. On the other hand, Evergrande did nothing, and the loan of 16.05 billion yuan shrank to only 7.06 billion.
But now Evergrande's words that it is not qualified to issue new notes means that the debt restructuring has come to naught, at least in the short term, there is no hope of continuing.
The creditors behind Evergrande's 2.388 trillion debt are dripping blood!
The direct factor for the failure of Evergrande's restructuring was that Evergrande's real estate credit disclosure violation was placed on file for investigation.
The deeper reason is believed to be likely to be related to the quiet divorce of Xu Jiayin and his wife Ding Yumei, and some media confirmed that the two had gone through the divorce procedures as early as last year, but Xu Jiayin and Evergrande did not report it, and kept everyone in the dark until the announcement in August this year.
The angry creditors of Evergrande still dare not speak out.
Three
The belt wrapped around the necks of Evergrande and Xu Jiayin became tighter and tighter.
On the evening of September 15, the national team took over and received all the assets and liabilities of Evergrande Life, and Evergrande Life ushered in the end.
But this does not mean that Evergrande Life is fine, Evergrande Life's former chairman Zhu Jialin was recently taken away for investigation and is currently in a state of disappearance, and people in the industry generally believe that it is inseparable from Evergrande.
On the evening of September 16, Evergrande Wealth was suddenly placed on file for investigation, and a number of executives were taken away overnight, announcing the official collapse of Xu Jiayin's financial empire.
As the boss behind Evergrande's wealth, Xu Jiayin sat and watched the legal person Du Liang, his wife Ding Yumei and others pay in advance and run away, Du Liang was arrested, but Ding Yumei has been safe and sound so far, how can Xu Jiayin not be afraid?
Now Xu Jiayin can only stay in the Guangzhou headquarters, and even outsiders cannot see him casually, which is equivalent to being "under house arrest", waiting for the final trial that belongs to him.
But Ding Yumei is still free, and her marriage to Boss Xu is divorced, but the marital debts can't run, and she can't let her run.
All indications are that the end of Xu Jiayin may not be far away.