https://www.caixinglobal.com/2019-0...nfirms-it-faked-financial-data-101417286.html
https://www.scmp.com/business/compa...ntions-sanpowers-debt-workout-show-why-chinas
The objective of the meeting was to devise a rescue plan for Sanpower Group, a hometown conglomerate with 100,000 staff on its payroll, with total liabilities estimated at more than 50.4 billion yuan (US$7.3 billion). The retailer and developer, founded by flamboyant entrepreneur Yuan Yafei in 1993, has defaulted on more than four onshore and offshore bonds as well as promissory notes worth a combined 2.6 billion yuan.
When I joined in 2015, Sanpower boasted of its fast development and outstanding management. All our notebooks printed quotes of our chairman Yuan on the front page,” said Wang Xia, who remembered how the company had been trying to sell its own residential property development on Hainan island to its own staff, just before she was laid off last October as part of a corporate restructuring. “Now I understand, things started to go downward at that time. The company was running out of cash.”
Out of their own concern to cap the ratio of bad loans, and having to make provisions for those bad debt, many banks are happy to cooperate with the government to give their borrowers more time, or even work together to hide problem loans, bank staff said.
An effort to restructure Sanpower’s debts failed to come up with a viable plan after eight months of negotiations, as creditors failed to reach a consensus on whether the company was capable of repayment, according to several sources familiar with the matter.
Genius businessmen in China!!!
https://www.scmp.com/business/compa...ntions-sanpowers-debt-workout-show-why-chinas
The objective of the meeting was to devise a rescue plan for Sanpower Group, a hometown conglomerate with 100,000 staff on its payroll, with total liabilities estimated at more than 50.4 billion yuan (US$7.3 billion). The retailer and developer, founded by flamboyant entrepreneur Yuan Yafei in 1993, has defaulted on more than four onshore and offshore bonds as well as promissory notes worth a combined 2.6 billion yuan.
When I joined in 2015, Sanpower boasted of its fast development and outstanding management. All our notebooks printed quotes of our chairman Yuan on the front page,” said Wang Xia, who remembered how the company had been trying to sell its own residential property development on Hainan island to its own staff, just before she was laid off last October as part of a corporate restructuring. “Now I understand, things started to go downward at that time. The company was running out of cash.”
Out of their own concern to cap the ratio of bad loans, and having to make provisions for those bad debt, many banks are happy to cooperate with the government to give their borrowers more time, or even work together to hide problem loans, bank staff said.
An effort to restructure Sanpower’s debts failed to come up with a viable plan after eight months of negotiations, as creditors failed to reach a consensus on whether the company was capable of repayment, according to several sources familiar with the matter.
Genius businessmen in China!!!
