Suppliers complain - Evergrande Auto shares continue to plummet

Evergrande does not currently see a solution to the crisis. Evergrande Auto stock continued to tumble today and complaints from suppliers about unpaid invoices continue to grow. In the German legal system, the group would be a case for the insolvency administrator. But in China the judiciary works differently and observers are looking into the whereabouts of Evergrande founder Hui Ka Yan (Xu Yiajin). At least he travels very exclusively. Communism is no longer what it used to be.

Exclusive - Airbus with ACJ equipment
Exclusive - Airbus with ACJ equipment

Losses that it hurts

Evergrande Auto stock (HK 0708) is losing so hard it must hurt. It went out of trading today, down 14,84% after it was more than a quarter of its value on Monday forfeited would have. At the moment, no one can answer the question of where the bloodbath will end. Just as little the future prospects of the Evergrande Auto division.

Meanwhile, more and more suppliers of the Evergrande Group are taking legal action. Yonggao Co Ltd. reports $ 74 million in bills, approximately a third of which are overdue for payment. The company stopped delivering to the group in May. In total, commercial invoices of around US $ 12 billion will be due in the next 37 months, reports Bloomberg in relation to the rating agency Standard & Poor's.

Where is Hui Ka Yan?

As always when there are problems in China and public figures spontaneously no longer appear to be visible, speculation about their whereabouts flourishes. Evergrande founder Hui Ka Yan is said to have landed in Beijing on August 14 with his plane, an Airbus A319-100 ACJ. Since then, the jet, registration B-6435, has been parked at the capital's airport.

The ex-Lufthansa Jet (D-ALTH) was taken over by Evergrande in 2012 at the age of 2. The ACJ equipment of the A319 is used as a VIP version by governments and companies. Germany and Italy fly corresponding jets in the government fleets. The installation of additional tanks enables a range of 11.000 kilometers. The A319 kostet In the basic configuration, US $ 92,3 million, the exclusive ACJ package plus any special requests are also added.

The Chinese media speculatively suspect that Hui Ka Yan has been in Beijing since August 14th. Which would not indicate a viable solution to the problems at this point in time.

With images from Airbus

5 thoughts on "Suppliers complain - Evergrande Auto shares continue to plummet"

  • blank

    One can assume that Hui Ka Yan has to answer a few questions in Beijing. The most important question: How do you go from being the most valuable manufacturer in China (see also Saabblog from August 7, 2020) to being a restructuring case in just one year? And that with a large part of government money.

    The government will try a lot to save face here. Hui Ka Yan will have to be humble, one can also assume that the Airbus will be communalized with a high-quality interior in all kinds of beige tones.
    Applied to Germany, I would think of some large companies and corporations where I could also imagine something like this retrospectively; Arcandor with Karstadt and Quelle, Lufthansa, Opel, BayernLB, HSH Nordbank and various other banks …… ..a seductive thought… ..

  • blank

    VW is now well ahead of TESLA, and again, this enriching society, is incredibly annoying to me, not my style, but that had to be revealed.

  • blank

    The Saab dealer tour

    If Evergrande were about to deliver its dozen models that had been announced, they would now go on the offensive and go public ...

    Saab had 7 current models including the 9-5 NG SC and 9-4X, at least in pre-production, on the road when the curtain fell.

    In this situation, if Evergrande could deliver a positive message to the public, its creditors, investors and the CCP, they would have delivered it to the media yesterday.

    Prototypes or pre-series on the road, on the test track, in the climatic chamber, during a crash test or wherever. If there is nothing like that in PR in this situation, then there is nothing to show. You have to look at it soberly.

  • blank

    Everything will be fine! Tesla and Nio were about to go bankrupt shortly before marketing, so those who have sold with losses are still crying and now it's going mega for them!

    Either you are convinced that it will be something and get involved now or if you have already invested you buy again and again to reduce your equity or you leave it. Sure, things like that are always fraught with great risks. It just depends on how advanced the new models are.

    If you don't dare, you won't win 😉

  • blank

    One would have to be a communist. Chic Airbus, you have to be able to afford it ✌️

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