2 Million Of Zhejiang'S Private Enterprises Are Facing A "Collapse" Crisis.

Zhejiang Yiwu's former star enterprise "Jin Wu group" is now facing a "collapse" of billions of dollars in debt, and Zhang Zhengjian, an enterprise leader and then "top ten young private entrepreneur", is also far away from debt and whereabouts.

Our reporter found that the dilemma of Jin Wu group is not a case.

At present, nearly 30% of private enterprises in Yiwu have broken their capital.

In Zhejiang, where millions of private enterprises are located, similar problems are very prominent.

It is disturbing that the "collapse tide" of larger private enterprises is spreading across the country.

The above situation has attracted the attention of decision makers.

Recently, Premier Wen Jiabao, vice president Xi Jinping, Vice Premier Li Keqiang, Vice Premier Wang Qishan and other relevant ministries and commissions have rushed to various places to investigate.

It is reported that tight monetary policy will not be loosened in the second half of the year, but the policy of credit restructuring for SMEs has entered a high-level decision-making vision.

At noon on July 15th, the scorching sun was burning in Yiwu.

More than 400 workers from the well-known private enterprises in Yiwu, Zhejiang, "Zhejiang Jiao Li socks Clothing Co., Ltd." (hereinafter referred to as "Jiao Li socks") are waiting for the hot sun to pay salaries for five or 62 months this year.

So far, the factory has been shut down for 15 whole days.

The sudden disappearance of Zhang Zhengjian, the head of Zhejiang's golden black group, is the main reason for the closure of the factory.

According to the workers in the clothing industry of Jiao Li, workers received a notice from the company in June 30th that the company began to suspend production from next month, so that the workers would wait in the factory for a reply.

At present, an endless stream of bank clerks, court officials and private usurer are visiting this group to try to recover loans.

However, as the group leader Zhang Zhengjian disappeared, the debt collectors could not get what they wanted.

The reporter understands that the general view of the local business community on this former star enterprise falling to this state today is that after the implementation of the credit tightening policy, there is a shortage of funds everywhere. Zhang Zhengjian, the general manager of Jin Wu group, was urged to repay the huge bank debts and usury, and must not escape.

In July 8th, the headquarters of Jin Wu group, 661 Chou North Road, Yiwu, had already been locked on three sides. The headquarters office of Jin Wu group was in a mess.

A nearby shopkeeper told reporters that a few days ago, many people gathered around the door for money, and some creditors moved away some valuable things. "These days, there is nothing to move."

Even the security guards left, leaving only the gatekeeper.

The staff of the group's clothing industry of Jiao Li socks said that the company did not pay wages for two months, with an average of 3000 yuan per worker.

In order to pay wages for two months, the company has to prepare about 1000000 yuan.

Yang, who has worked in the private company for 11 years, has said that the Yiwu labor inspection team has said that if the company terminates labor relations with the workers, more than 400 workers will have at least about 4000000 yuan in two months' wages and labor compensation.

The labor contract law allows the enterprise to prepare for huge compensation.

However, this is only a small sum.

According to a lawyer from Zhejiang Zawa law firm, which has recovered many debts owed by Jin Wu group, the debt of Jin Wu group is at least 500 million yuan, and Zhang Zhengjian's escape is obviously to avoid debt.

Yiwu City Middle Road 88, Jin Wu group's Quasi Samsung Hotel Santo Traders Hotel location, now become a "staged" debt, debt farce "stage."

On the afternoon of July 9th, the reporters saw that the spacious lounge was in a state of disorder, with bicycles full of bicycles; the kitchen utensils were also stacked in the corner of the lobby; more than 30 employees gathered to play cards on the sofa in the lobby.

The staff told reporters that they also received an oral notice at the hotel's senior level at 5 p.m. on June 30th. From now on, the San to Grand Hotel ceased to operate.

For now, the hotel has been closed for more than half a month, and more than 100 employees are still staying in the hotel waiting for payroll.

According to the staff of Traders Hotel, the second half of 2007, the creditors went to the hotel to ask for money, and some creditors still lived in the hotel.

In April, one day, more than 20 cars, including BMW and Mercedes Benz, were stopped at the entrance of the hotel. The owners were all in debt.

"Zhang Zhengjian ate a group of debtors in the hotel to eat, he personally told these creditors that he had seven or eight billions of assets, and was afraid that he owed the money."

A waiter in the box recalled.

But in the evening of May 12th this year, Zhang Zhengjian was locked up in the 1010 room of several hotels by several creditors.

Zhang Houlai threw the phone in the room downstairs and was seen by the security guard. Security and staff looked up one layer at a time and finally rescued Zhang.

Also, employees once witnessed that Zhang once served in a banquet hall and was tucked away in the car by several creditors.

According to a legal profession familiar with the private lending market in Yiwu, Jin Wu group has debts less than 5 hundred million, tens of millions of dollars and a single usury is a common practice for Zhang Zhengjian.

According to the hotel captain, Zhang Zhengjian spent 60 million yuan in July 2005 to buy the old Jinjiang Hotel, renamed it Traders Hotel and reopened.

The hotel business has been very good, and the 100 rooms are almost full every day. The turnover of restaurants is at least 200 thousand ~30 yuan per month during the off-season, reaching 400 thousand ~50 yuan in the peak season.

But as the group debt crisis broke out, the funds could not be recovered. In the first half of 2008, the hotel was in a state of loss.

At present, many subsidiaries of Jin Wu group are almost out of business and there is a phenomenon of arrears of wages.

Reporters learned that founded in 1994, the Jin Wu group was a star enterprise in private enterprises in Yiwu. It was an integrated enterprise of agriculture, industry and commerce. It mainly engaged in socks, clothing production, processing, chemical fiber, cotton yarn and other textile raw materials wholesale, hotel catering, agricultural comprehensive development, and so on. It was Yiwu's "top five" private enterprises.

Zhang Zhengjian, President of the group, was awarded the honorary title of "top ten young private entrepreneurs" in Jinhua and "youth spark leaders" in Zhejiang province.

In 2003, Jin Wu group turned over 11 million yuan to the state revenue, ranking first in Dachen Town, Yiwu.

The debt crisis of Jin Wu group was concentrated before and after the Spring Festival in 2008.

The earliest was the bank's debt collection. Later, Guarantee Corporation and some creditors also heard the news.

According to a private borrower.

At the end of December 2007, the about 20000000 yuan loan of Jin Wu group was expired at a bank.

In the end, Zhang took the 4 point interest from a Guarantee Corporation to 20 million yuan to cope with the crisis. But after the Spring Festival, the new loan came to the repayment date.

After the Spring Festival of 2008, some private borrowers were found wanting to borrow 10 million yuan for 4 months' interest rate for 3 months. At that time, it was a good "sweetness". But he later heard that he wanted to lend a loan to the group.

The personage introduces, these years, Zhang Zhengjian often is to take the east wall to make up the west wall.

Mr. Zhang Zhengjian, a well-known businessman in Yiwu, said that he was originally a farmer in Yiwu's Dachen town.

In the 80s of last century, Zhang Zhengjian accumulated experience in distributing socks business in Henan, Hebei and other places.

In 1991, he returned to Yiwu to start a business and run the wholesale business of socks.

Soon the business grew bigger and Zhang Zhengjian started the Zhejiang Jiao Li socks industry Co., Ltd. in 1994.

In 1998, Zhang Zhengjian set up Zhejiang Jin Wu group Co., Ltd., including 10 subsidiaries in Zhejiang, including "Zhejiang Jiao Li socks", "Yiwu Wansheng chemical fiber", "Jinhua Jiangnan farm", "Shenzhen Di Jia Trade" and "Yiwu mountain Los Alisios Hotel".

"Jiao Li socks" has two brands: "Shan Tu" and "dream Dansari". It is a famous trademark in Zhejiang and a famous trademark in Jinhua.

"Shan Tu" and "Meng Dan Sha Li" were famous in those days, but now they are all going to disappear in the market.

According to the staff of Jiao Li socks, the export volume of the garment industry started to decline due to the poor export situation in recent years, and the competition in the domestic market became increasingly fierce. "In the past few years, when the company was in good condition, its annual output value exceeded 100 million yuan, and it was turned over to tens of millions of dollars in national profits and taxes every year.

But when the group opened in early 2008, the group made only 20 million yuan for the annual sales of Jiao Li socks.

According to Zhang Zhengjian, a garment maker in Jiao Li, he wanted to move the Kun Li socks factory to Jin Wu group in the factory area of more than 100 mu in the Beiyuan development area, and later there was no movement of funds.

The reporter saw that the new factory had been built by workers, but the gate was closed, and there was a lot of construction waste left in the factory.

According to the workers from other factories nearby, the factory has been built for more than half a year, but it has not been started yet.

Faced with the declining situation of clothing sales both at home and abroad, Zhang Zhengjian finally decided to put money into other fields.

"In 2005, Zhang Zhengjian built a" dragon city "commercial city in Dubai, which has more than 500 shops for domestic enterprises.

The group has more than 200 employees in several companies in Dubai.

According to the insider, Zhang has set up 4 overseas subsidiaries in the UAE, Dubai, UAE Golden Group International Co., Ltd., UAE Shan Tu Trading Co., Ltd., UAE Shan Tu Decoration Co., Ltd., UAE Shan Tu restaurant Co., Ltd.

In order to maintain overseas projects, Zhang Zhengjian squeezed the funds of its domestic enterprises, even including the core assets of Jin Wu group.

The new factory that Jin Wu group had prepared for the clothing of Jiao Li socks was eventually mortgaged because it could not afford a bank loan.

Since then, the business of Johnson's clothing and other subsidiary companies has been on the decline.

However, overseas business has not made Zhang happy.

In recent years, a large number of Wenzhou and Yiwu businessmen have gone to Dubai to invest in real estate projects, such as investment in shopping mall. Zhang Zhengjian's business in Dubai has been fiercely competitive. Due to the increasingly limited domestic financial support, Zhang Zhengjian has to finance from domestic banks or private sectors. It is said that Dubai's "dragon city" project has spent more than two billion of Zhang Zhengjian, many of which come from loans and usury.

According to people familiar with the matter, the main reason for the breakup of the capital chain is the shrinking of its main business, less investment in other industries and the expiration of usury.

According to a bank personage, a few years ago, when Yiwu's Bank credit policy was loose, an enterprise could borrow money from the bank or borrow from the private borrowers if it had normal operation and maintained good results.

Generally speaking, after investing in other projects, the company will repay loans after making enough interest.

It is understood that there are 3 hundred million of the fixed assets of the Jiao Li socks industry in Jin Wu group. When the business was good in the past few years, the annual output value was up to 100 million yuan.