Evergrande Gave Workers a Choice: Loan Us Cash or Lose Your Bonus

[Zorro]

The Chinese property giant owes $300 billion and is on the hook for as many as 1.6 million apartments. It may owe tens of thousands of its employees money, too.

When the troubled Chinese property giant Evergrande was starved for cash earlier this year, it turned to its own employees with a strong-arm pitch: Those who wanted to keep their bonuses would have to give Evergrande a short-term loan.

Some workers tapped their friends and family for money to lend to the company. Others borrowed from the bank. Then, this month, Evergrande suddenly stopped paying back the loans, which had been packaged as high-interest investments.

Now, hundreds of employees have joined panicked home buyers in demanding their money back from Evergrande, gathering outside the company’s offices across China to protest last week.

Once China’s most prolific property developer, Evergrande has become the country’s most indebted company. It owes money to lenders, suppliers and foreign investors. It owes unfinished apartments to home buyers and has racked up more than $300 billion in unpaid bills. Evergrande faces lawsuits from creditors and has seen its shares lose more than 80 percent of their value this year.

https://www.nytimes.com/2021/09/19/business/china-evergrande-debt-protests.html

[Tomconroy]

1. That would be a sign you should update your resume!

[Faux pas]

2. DISGUSTING

[fescuerescue]

3. That's one of the more bizarre employment practices I've heard of.

[empedocles]

4. 300+ billion on the line

Evergrande debt: Collapse could have domino effect on ...
https://www.cnbc.com/2021/09/20/evergrande-debt...

17 hours ago · Evergrande, the world's most indebted property developer, is crumbling under the weight of more than $300 billion of debt and warned more than once it could default.

[dixiegrrrrl]

5. Massive tidal wave of bond market collapse moving out of China.

Huge huge numbers of real estate giants, of big banks who lent to them, of companies that insured every aspect of the mess are all dependent of the apparently fictional value that held that market up.
Numbers were fudged...Everglade reported NO losses for years now....wtf?
No one looked too closely until last month.

bonds are debt. Global economies have relied on living on debt as money.
When you stop regulating debt markets, you get bigger and bigger debt until it becomes evident there is not earthly way to pay it all back.
Simple as that.
On an intertwined global scale China is having a fiscal neutron bomb explosion, and trying to deny it.

[empedocles]

6. Corruption in China - imagine

[Amishman]

8. Yup, the Chinese government's hands on role in the economy is problematic

Especially their desire to appear infallible.

Bad economic news reflects poorly on the party and their leadership, so bad news is suppressed as much as possible.

Hopefully it all falls down and the current government topples. China is not our friend

[Buns_of_Fire]

7. I wonder if they're related to Everstuck container transport...

[Celerity]

10. Evergreen Group is Taiwanese, completely different firm nt

[Mr.Bill]

9. That doesn't even sound legal. n/t