According to the official website of the Hong Kong Judiciary, Top Shine Global Limited of Intershore Consult (Samoa) Limited has filed a liquidation petition with China Evergrande Group in the Hong Kong High Court . The case number is HCCW 220/2022, and the hearing is scheduled for 2022. August 31st at 9:30am.
What is a winding up petition? If a company has too much debt, its creditors or company members can file a winding-up petition with the court. The company's operations will cease and all assets will be sold at low prices in the short term to repay previously unpaid amounts. Then, in accordance with legal procedures, the company will be declared to be dissolved. . After the creditor files a winding-up petition, the court will conduct a hearing on the winding-up petition. Finally, the court will issue a compulsory winding-up order ordering the company to be wound up. Generally speaking, liquidation petitions can be divided into two situations. One is voluntary liquidation, that is, the company believes that there is no need to continue operating and liquidates assets to repay debts. The other is compulsory liquidation. Usually because the company cannot repay its debts, creditors file a liquidation petition with the court. After the court hears and approves the application, it finally issues a compulsory liquidation order. Obviously, Evergrande belongs to the second type.
In response to the liquidation petition filed, China Evergrande issued an announcement stating that it "strongly opposes the liquidation petition and will not affect the restructuring plan." China Evergrande stated in the announcement, “Top Shine Global Limited of Intershore Consult (Samoa) Limited (the petitioner) filed a winding-up petition against China Evergrande with the High Court of the Hong Kong Special Administrative Region on June 24, 2022, involving China Evergrande’s The amount of financial obligations is HK$862.5 million." Evergrande further said, "China Evergrande will vigorously oppose the petition, and it is also expected that the petition will not affect China Evergrande's restructuring plan or timetable; China Evergrande has been actively communicating with creditors to promote overseas debt restructuring work, and is expected to An initial plan for overseas debt restructuring will be announced before the end of July." However, Evergrande also reminded: "If China Evergrande is eventually liquidated as a result of this petition, any transfer of shares made on or after the Commencement Date will be invalid without a recognition order from the High Court."
China Evergrande executive director Sean said that the person who filed the liquidation petition this time was a strategic investor in China Evergrande’s housing trading platform RVB, whose claims accounted for less than 1% of the group’s total overseas debt ratio. Evergrande has had multiple rounds of communication with it before, but the other party still filed a liquidation petition against China Evergrande in the Hong Kong High Court on June 24. At present, Evergrande's overseas debt has defaulted. The company will treat all creditors fairly as usual, actively continue to seek reconciliation with the above-mentioned strategic investors in accordance with international practices and market rules, and consider the debt under the framework of overseas debt restructuring in accordance with the law. Sean also emphasized that at present, the operations of China Evergrande's board of directors, risk resolution committee and management teams at all levels are not affected. All parties are sparing no effort to stabilize production and operations and continue to actively communicate with domestic and foreign creditors on overseas debt restructuring.
Some legal experts said that the submission of a winding-up petition by creditors does not mean that the company is bankrupt. After receiving the winding-up petition, the company can object to the liquidation in accordance with the law. This has no substantial or significant impact on the company's financial status and operating conditions. At the same time, the Hong Kong court will hear the winding-up petition and decide whether to make a final winding-up order, and this hearing process may last several months or even longer. The management of the company may continue to perform their duties until a liquidator or provisional liquidator is appointed by the court.
As of now, Evergrande has officially defaulted on 13 US dollar bonds totaling approximately US$19.285 billion. On June 20, China Evergrande issued an announcement that the company is actively promoting restructuring work and the company is expected to announce a preliminary restructuring plan before the end of July.
stock suspension , debt default, car manufacturing stagnation, Evergrande fell into an endless loop. Against the background of huge debts, Evergrande still adheres to the "car-making dream" and seeks more possibilities for the mass production of Evergrande Automobile by selling its assets, and even "keeps the car and abandons the house", formulating a "realization goal within the next 10 years" The industrial transformation of real estate to new energy vehicles will form an industrial plan with new energy vehicles as the mainstay and real estate as the supplement.In other words, Evergrande's transformation from real estate to new energy vehicles is a helpless move, because the success or failure of Evergrande Automobile is the key to Evergrande's turnaround. Only the success of Evergrande Automobile can save Evergrande from the fire.
html On March 22, Evergrande New Energy Automobile Group held a mobilization meeting titled "Three months of hard work to achieve mass production of Hengchi 5". Evergrande Chairman Xu Jiayin said at the meeting: "The automobile group must work hard day and night, work hard, and work hard for three months. We must achieve mass production of Hengchi 5 on June 22 to contribute to the healthy and sustainable development of Evergrande Automobile." "Laying a solid foundation." On May 18, Hengchi's official WeChat public account issued a "Statement": Affected by the epidemic, the original mass production time of Hengchi 5 from June 22, 2022 will be adjusted to September 20, 2022. Work is progressing normally. With "March after March", the time of Evergrande Automobile's "savior" is running out. In 2021, Evergrande Automobile's highest stock price soared to HK$72.4, surpassing BYD to become the country's highest market value car company. However, it has now fallen to HK$3.2 and has been suspended for three months. At present, the biggest problem hindering Evergrande Automobile's resumption of trading is that Evergrande's financial performance and audit cannot be completed. Continued suspension may trigger the accelerated repayment of 's convertible bonds, thereby exacerbating the company's liquidity pressure, and financial pressure will further Affect the progress of car building.
As the first mass-produced car of Evergrande Motors, Hengchi 5 plays the role of "savior". Currently, Evergrande is working hard to ensure mass production of new cars, but the pressure after mass production is even greater. As a cross-border car brand with a luxury positioning, in order to match its market positioning, Hengchi Automobile means that channel construction and marketing expenses are also a large expense. If Hengchi 5 wants to truly achieve mass production, it must invest A lot of funds, but what the entire Evergrande department lacks most is funds. What's even more difficult is that if the car never gets built, it will further exacerbate the financial crisis.
Of course, although the mass production of Hengchi 5 has been postponed to September, it will not affect the tour of Hengchi 5 at all. On April 21, three Hengchi 5 units appeared at the Guangzhou Evergrande Center. Xu Jiayin and his management team experienced the appearance and interior of the vehicles. In order to test the intelligence of the vehicles, Xu Jiayin also ordered the song "Waiting" through the voice assistant. , and after the experience, they repeatedly praised: Beautiful! it's beautiful!
At the same time, Hengchi 5 is accelerating its entry into the Hengda community, attracting the attention of many property owners. At present, signs such as "Hengchi Sales Center" and "Hengchi Exhibition and Experience Center" have been hung up in Hengda District and Evergrande Plaza Commercial Street in some cities. The first 15 key cities to display and experience center layout are also The area where Evergrande Property project is densely divided.
"Building a car itself is not easy, and building a car across borders is even more difficult! This is a matter that requires both technology and money, and timing and luck also account for three parts." Three years ago, Weilai Li Bin, the founder of , said frankly, "If you don't have 20 billion, don't build a car." But by 2022, this threshold will become "If you don't have 40 billion, you may not be able to build a car."
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