In May 2016, Wang You Zeng died in a car accident in the United States. I wonder if at the last moment of his life on the Audi A8 on California Highway 10, Wang You Zeng felt any guilt for the many victims of the hollowing case and the 250,000 shareholders. Woolen cloth? unnamed Image source: Wang Youzeng, the former head of Liba Group, died in a car accident in the United States – FTV News News at the time After founding "China Liba Steel Frame" in 1959, Wang continued to expand his business territory, and finally ventured into banking, insurance, coupons, cement, telecommunications, department stores, etc., and also owned five listed companies, with total assets in the heyday. Up to more than 500 billion Taiwan dollars. Compared with the total assets of today's large groups, 500 billion does not seem like much, but if you know that the total assets of Hon Hai Group in 2006 were only more than 460 billion, you can understand the weight of the Liba Group at that time.
The two oldest listed companies in the group, China Liba and Jia Shihua, have been operating poorly for many years. Especially in the seven years Special Database before the scandal broke out, the accumulated losses totaled more than 25 billion yuan. They also cooperated with about 20 financial institutions. For borrowing, the total debt is at least 40.6 billion yuan, and the monthly interest is nearly 100 million yuan. Years of losses, coupled with the repayment of huge loans and interest, the financial situation was already shaky, so I had no choice but to do so at 4:30 pm on Friday, December 29, the last working day of 2006, also known as the closing day of the stock market. I will find a time), and apply to the Taipei District Court for reorganization and emergency sanction. Why Reorganization and Emergency Action? Because the financial situation of these two companies is really bad, so bad that they can't even pay. Take Jiashihua as an example. In 2006, it negotiated with various creditor banks, hoping that the bank group could reduce the interest rate and delay the repayment of the about 14 billion long-term loans that are about to expire. Just like in TV or movies, the vicious debt collectors demanded to pay back the money quickly, the poor borrower knelt down and begged, and kept saying,
"Please give me another week, I will have money next week, I'll give it back to you!" It's just that the scene is changed to a business and a bank. The result of the negotiation is regrettable, and the vast majority of banks have refused. It is conceivable that the next step of the bank will not be foolishly waiting for the day when the money is not paid, but will immediately try to get the company to repay the money (exercise the creditor's rights), such as applying for an auction of the collateral. If every creditor bank starts demanding its claims, it's like takt sell its assets, and can only pay for the necessary operating expenses. Paper can't wrap fire On January 4, 2007, the Taipei District Court ruled that China Liba and Jia Shihua were granted emergency punishment fo