In the context of the financial crisis in the textile industry giants into the group Bingku Long

Core Tip: deep debt crisis has been more than 1 month Zhejiang China Holdings (hereinafter referred to as the Group of vertical and horizontal), an internal anxious. There are well-informed sources, who are charged aspect of the Group of the bank debt of up to 4,000,000,000 yuan.

Now with the crisis in sharp contrast to the Group of China have brilliant. Earlier, the state’s key high-tech enterprises, selected by the end of August when the 2008 China top 500 enterprises, ranked No. 280. In the Oct. 8, China Hui Yuan Bo, chairman of the Group of 70 billion wealth, short-listed for the first time Hurun Report list.

Forced, Zhejiang Shaoxing city government launched an unprecedented operation to rescue Bingku Long-strand break into the capital of China Group. At present, Shaoxing City, re-establishment of the difficulties of the leading group (hereinafter referred to as the Working Group) has been stationed in the plant inventory of its assets, and restructuring and creditor negotiations.

The biggest efforts in the rescue operation

More than 3 months ago, continue to spread a variety of vertical and horizontal group of funds of the strand breaks, and the company always passively ongoing denial. In fact, in accordance with the current situation of China Group, not only unable to pay the bank a total of up to 40 billion in loans, its liquidity has dried up.

Shaoxing counterparts from the local media learned that the working group is currently on the inventory of the Group of China has substantially more liabilities than assets.

A banking source said that even if China’s production equipment auction, and not worth any money, the actual deficit number, it was not the end. In addition to the bank and the huge debt, the Group of China has also been paid for the supplier of a huge amount of money. Statistics show that China Group paid arrears of 230 suppliers, and the total amount of 490,000,000 yuan.

In order to ensure that the local government and non-production enterprises, has been ahead of the implementation of the business part of the land of demolition compensation policy for the time being to ease the tense issue of corporate funds. At present, China’s business by the Group of Shaoxing, another local chemical fiber enterprises – the ancient fiber Zhejiang Road Materials Co., Ltd. for a new contract processing.

At the same time, the local government set up the Working Group on an unprecedented scale, known as the “Shaoxing on the crisis at all levels of government efforts to save the largest enterprise in an operation.” As far as I know, China entered the headquarters of the Group of the Working Group brings together 26 leaders, under the protection of the production, verification of claims and liabilities, letters and Wei Wen, debt restructuring and disposal of the debt negotiation 5 special working group.

In addition, the local government has also commissioned accounting firm ZTE Shaoxing China on the assets of the Group audit. However, the complexity of the Group of China has assets in excess of the auditors of the imagination, “7-10 days before the expected completion of the audit will be able to, but have not yet passed two weeks to complete.”

According to people close to the Working Group, China accounts payable of the Group of almost 30 billion, more than 2,000. “At present the audited, it is the headquarters of this asset, as much out of the hole, it is hard to tell.”

Have said, not only the loss of assets outside in order to ensure that the Group of China to carry out the reorganization.

Bank loans to expand business territory

China in the group behind the office building, Hui Yuan Bo, Chairman and General Manager of Mercedes-Benz car and his wife’s BMW car had been parked there quietly more than 1 a month. It is reported that in order to prevent the escape Hui Yuan Bo, Shaoxing City, on their implementation of the relevant departments under house arrest.

In fact, the vertical and horizontal group leaders the current situation, a closely-guarded secret in-house staff. Reporter phone aspect of the group, his office staff repeatedly said “no comment” and hung up hastily.

43-year-old Hui Yuan Bo, several times in recent years into the Rich List Report. 2006 is still ranked 251, he rose in 2008 to 76, only a selected list of the Hurun Report Shaoxing local entrepreneurs.

Hui Yuan Bai and the matter has been started to be talked about: in 1992, Shaoxing County, the town of Doumen government deficit of nearly 200 million of the original yarn-dyed Wuchang County, Shaoxing, China Light & Textile Industrial City to sell in the 13 years of cloth Hui Yuan Bo . Through the use of letters of credit issued by the long-term approach, yarn-dyed Wuchang bring in international advanced equipment, loss-making enterprises out of the situation.

Hui Yuan Bai and the banking sector by virtue of the close relationship between the vertical and horizontal group received up to 40 billion yuan of bank loans to total loans and letters of credit, the rapid expansion of the Group of China’s territory.

In 2003, China began a rapid expansion of the Group, a large number of funds into capital-intensive industries.

These large projects, including concrete, MA-based Industrial Park in the production 400,000 tons of polyester fiber production projects; quickly launched 600,000 tons of PTA production line; Handan in Hebei Province with an annual output of construction of 2,500,000 tons of steel rolling project in broadband, the establishment of China Handan Iron and Steel Limited Company; set foot in the real estate industry, the establishment of real estate companies, Paojiang invest in the development of “centers of wealth”; 1.1 billion investment, joint investment and development Badong power cascade hydropower stations along the river crossing.

However, these investment projects, almost all of the Group of China, “Mak defeated city.” By the end of April 2004, with the contraction of money supply, bank to stop the vertical and horizontal group of all lending, so that aspect of the Group of the chain of funds to start up tension.

Look forward to help the textile industry in Shaoxing

In 2006, when the vertical and horizontal chain of the Group of funds to ease a little tension, Ren-Yuan Bai began adjusting the industrial structure of the layout. And surprisingly, China Chemical Fiber Industry Group, cutting down and been replaced by the financial industry to expand, the equity participation of up to 5 city commercial banks, with a total capital has reached more than 800,000,000 yuan.

Turned out that the global financial crisis broke out. International oil prices, which led to the domestic chemical fiber raw materials and product prices drop caused by a loss, the Group of China’s imports of raw materials used letters of credit losses more than PTA.

In August this year, the group’s China sales from the normal course of 500,000,000 yuan / month, dropped by half, to 250,000,000 yuan / month.

As a result, the Group of China to seek help from a number of banks, hoping to help make up for its shortfall in funds. Bank credit in the survey, China also took the Group 700,000,000 assets as collateral to obtain bank’s hand.

However, Ren-Yuan Bai did not think that they have made great efforts, he high hopes for a state-owned banks but did not give the final aspect of the Group 800,000,000 yuan of loans to fill a vacancy. This fund was about to crack the China Chain Group, suffered a fatal blow.

At this point, in order to ease the tension of the capital chain, Ren-Yuan Bai began to play a high financial cost of the sale of letters of credit, but often resulted in the sale of letters of credit of up to 6% of the financial costs. The Working Group has vertical and horizontal group of illegal funds the operation of the audit investigation, which may also include non-high interest loans. The media describe these acts seem to be more like China Yuan Bai Hui to save the group’s “drinking poison to quench thirst” move.

In fact, China is the second Hualian Group Sanxin, Shaoxing in the country’s largest textile center and a strand break Bingku funds into large-scale enterprises. So far this year, also in Zhejiang Jinxiong Group, Shaoxing Textile Printing and Dyeing Co., Ltd. Long Yao, Jiang Long Holdings, the five rings of these Spandex-known local textile companies are in trouble.

At present, the textile industry in Shaoxing is looking forward to help, and the Government of China Group, the large-scale rescue of making enterprises moribund renewed vigor, all is still unknown.