As long as Evergrande has the Swedish Saab relics, the company will remain on our radar screen. The reports are dramatic, but apparently the administration is still sticking to the hard landing principle. Bankruptcy should be avoided, it would have a fatal signal effect for the Chinese real estate market and the Evergrande competitors. Almost all of them are also struggling with massive financial problems.
$ 13 billion in outstanding payments
Evergrande misses payment date after payment date for domestic and foreign bonds. But the situation is even more dramatic for suppliers and partners, who are also waiting for instructions. With some pragmatism, the administration has assigned payment claims to a single court. There, 24 lawsuits accumulated between August 9 and December 367. There are said to be pending proceedings worth US $ 13,2 billion, such as the Financial Times reported.
Since the Evergrande Group's real estate sales collapsed at the same time, a race for the cash in the accounts is now beginning. The court distributes according to its own judgment, the largest creditors are the state banks, which Evergrande once showered with loans and thus helped the speculative bubble on the way.
Just as the state once gave, it is now taking it again. The administration has begun court recollecting land that Evergrande acquired but did not develop within the prescribed time limit.
Review of assets
In principle, the Evergrande group is nationalized a little more every week. Beijing has sent another commission to the company's headquarters to collect the assets check target. The trigger is the company management described as chaotic and Beijing's dissatisfaction with the crisis management. The audit also extends to founder Hui Ka Yan's private assets.
The founder is said to have received around US $ 2009 billion in dividends from the highly indebted group since 8. The commission is to help uncover hidden assets and ultimately decide whether government funds are needed to clean up the group.
Evergrande already has a state risk management committee on board and can be considered state-run. Even if nobody will officially say or write that.
Meanwhile, the bride show in Trollhättan goes into the next phase. NEVS presents itself from its best side and lets secret insights in the development center too. Time could be pressing. At some point in the near future, creditors will be able to access the Evergrande Group's international assets. By then, at the latest, there would also be a fire under the roof in the Stallbacka.