The least important bills go to the bottom of the pile;
China Evergrande Group’s electric-car unit missed salary payments to some of its employees and has fallen behind on paying a number of suppliers for factory equipment, according to people familiar with the matter, evidence the stricken property developer’s debt woes are having an impact beyond its core business.
The cash flow difficulties mean China Evergrande New Energy Vehicle Group Ltd. will likely miss its target to start mass deliveries next year considering trial production of electric vehicles at its factories in Shanghai and Guangzhou has been dialed back, the people said, asking not to be identified as they’re not authorized to speak publicly.
Most employees at Evergrande NEV are paid at the start of every month and again on the 20th, however for some mid-level managers, the second installment for September hasn’t arrived, the people said. Several equipment suppliers, meanwhile, began withdrawing their on-site personnel from the Shanghai and Guangzhou sites as early as July after payments for machinery in Evergrande NEV’s factories weren’t made.
Keep moving! Nothing to see here! Keep moving! All is Well! ALL IS WELL!
What happens when the thousands of suppliers and contractors stop paying their bills?
And then their employees, suppliers and banks don’t get paid?
I bet every construction contractor, building supply company, and bank are asking for their money from every Chinese property developer today, and wanting cash up-front for every job.
How many depostits were put down for those cars?
Maybe the likeable basic dictatorship, can kidnap some more people only this time hold out for cash. Or maybe 2 Mikes were paid for?
Holy, those 2 villages have 36 million people between them,and if their economy collapses, there will be huge problems, 36,000,000 pissed of people could cause big problems that reach far beyound their city limits,so maybe the Chinese are just setting things up so they are in a possition to beg for favours $$$$$$$$!
I’ve seen this before – companies financing their cash flow from the stock market and not from operations. Evergrande (what a name!) saw their stock drop by 75% BEFORE their troubles began. Can’t finance. No cash flow.
Evergrande owes 300 Billion dollars
yup 300,000,000,000 dollars
If anyone cares, here’s a video of the Evergrande EV factory and the sham that the entire enterprise really is:
https://www.youtube.com/watch?v=cOdncrrlukY
These guys make Bernie Madoff look like an LPC amateur.
I wonder how many pension plans are deeply invested in Evergrande ?
I wonder how much CPP money has been invested in various Chinese entities.