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Re:Evergrande shares plunge as much as 87% as trading resume... by NotYourLawyer on Monday August 28, 2023 @07:13AM (#37292334)
Right. But assets < liabilities means that “what is left” is nothing.
Re:Evergrande shares plunge as much as 87% as trading resume... by matwood on Monday August 28, 2023 @07:24AM (#37292416)
On paper before the bankruptcy process happens. There is often a restructuring, assuming the business can become a going concern again.
Re:Evergrande shares plunge as much as 87% as trading resume... by slv77 on Monday August 28, 2023 @08:01AM (#37292740)
Shareholders have no priority and the only hope for shareholders to recover anything would be through government intervention (e.g. American International Group). The value in Evergrande was entirely in its financial engineering capabilities and not in its construction expertise. The loss of confidence means that the financial side of the business has zero value now and nobody would be give them new money today even if excess liabilities magically disappeared and the construction side is severely impaired as there is little demand for new apartments.
Re:Evergrande shares plunge as much as 87% as trading resume... by NotYourLawyer on Monday August 28, 2023 @08:06AM (#37292797)
Restructuring doesn’t create money out of thin air. If the bondholders aren’t paid off in full, there’s nothing left for equity.