Textile Giants Under Financial Crisis Are Insolvent

Core tip: Zhejiang has been deeply involved in debt crisis for more than 1 months.

A person familiar with the matter revealed that the bank liabilities of the group were as high as 4 billion yuan.

The contrast between today's crisis and the current crisis is the brilliance of the vertical and horizontal group.

Previously, the country's key high-tech enterprises were selected to be ranked 280th in the top 500 enterprises in 2008 at the end of August.

In October 8th, Yuan Bairen, chairman of the group, won the first prize in the Hurun rich list with a fortune of 7 billion yuan.

Helpless, the Shaoxing municipal government of Zhejiang launched an unprecedented action to save the vertical and horizontal group which fell into the ice hole of the capital chain.

At present, the leading group for solving difficulties and restructuring work in Shaoxing (hereinafter referred to as the working group) has been stationed in the factory area to check its assets and negotiate with the reorganizing party and creditors.

More than 3 months ago, the most powerful rescue operation came out of the news that all kinds of capital chains were broken, and the company was always passively carrying out rumours.

In fact, according to the current situation of the crossbar group, not only can it not afford to pay a total of 4 billion yuan of loans, but also its own liquidity has dried up.

"The legal weekly" reporter learned from Shaoxing's local media colleagues that the vertical and horizontal group, which is being examined by the working group, is virtually insolvent.

A bank official said, even if the vertical and horizontal production equipment is auctioned, it will not be worth much money, and the actual deficit will not be enough.

In addition to the huge debts of banks, the group also defaulted on a large amount of money from suppliers.

According to statistics, there are 230 suppliers of goods in arrears, and the total amount is 490 million yuan.

In order to ensure that enterprises do not stop production, the local government has implemented the compensation policy for removing part of the land in advance, temporarily relieving the shortage of funds.

At present, the business of the crossroads group is handled by the Shaoxing local another chemical fiber enterprise, Zhejiang ancient fiber road new material Co., Ltd.

Meanwhile, the scale of the working group set up by the local government is unprecedented. It is known as "the biggest action of all levels of government in Shaoxing to rescue the crisis enterprises".

According to the reporter's understanding, the working group stationed at the headquarters of the group has brought together 26 leaders, including 5 special working groups, including production protection, debt and debt verification, letters and visits stability, debt and debt disposal and reorganization.

In addition, the local government has commissioned Shaoxing Zhongxing accounting firm to audit the assets of the group.

However, the complex asset situation of the group has gone beyond the auditors' imagination. "It is expected that the audit will be completed in 7-10 days, but the two weeks have not yet been completed."

According to people close to the working group, the accounts receivable and payable accounts of the cross section group are close to 3 billion yuan, with more than 2000 pens.

"What has been audited at present is the assets of its headquarters, but it is hard to tell how big the hole is outside."

A related person said that only when the assets outside were not lost could the restructuring of the vertical and horizontal groups be ensured.

Yang Jing: editor in charge