Chapter 397 Sadness
The article written by Zhang Yunqi, "The Concept of Public Enterprise System Reform and Rural Land System Reform in the Context of China's Urban-Rural Integration Development", was published in the "Southern Hunan Daily" the next morning after he met Hu Xianxun and had dinner at Ji Zhong's house and returned to Jiangchuan overnight.

That day's newspaper soon appeared on the streets of Jiangchuan, in the upper circles of this small town, and on Gao Shan's desk.

Gao Shan was very busy during that time.

He was busy putting out fires everywhere!

An application from the Jiangchuan Branch of the Agricultural Bank of China triggered the debt crisis hidden under the iceberg of the Phoenix Group.

In the property preservation application submitted to the Jiangchuan Intermediate People's Court, the Jiangchuan Branch of the Agricultural Bank of China requested to freeze the bank deposits of the respondent Phoenix Group worth 12 million yuan, or to seal and seize other properties of equal value.

The reason for this application was a bit exaggerated, blatantly stating: "The situation is urgent. If you do not apply for preservation immediately, your legal rights and interests will suffer irreparable damage."

The high mountain reaction is still very quick.

The first person he thought of was Zhang Yunqi.

This young man saw through the fatal problem of Phoenix City.

Before going in, Zhang Yunqi visited all the major banks. Gao Shan didn't believe that the sudden plunge of the Jiangchuan branch of the Agricultural Bank of China had nothing to do with Zhang Yunqi. There must be a conflict of interest, and Zhang Yunqi at least played a role in fueling the situation!
You should know that the time when the Jiangchuan Branch of the Agricultural Bank of China submitted its application to the Jiangchuan Intermediate People's Court was the day after the Xiangnan Branch of the Agricultural Bank of China and Liansheng Group reached a comprehensive cooperation agreement.

The other party didn't even bother to hide it.

At that time, Zhang Yunqi was still in there and Gao Shan didn't think that Zhang Yunqi had a chance to get out, so all his energy was focused on the company's debt problem during that time. He responded quickly to the plunge of the Agricultural Bank of China's Jiangchuan Branch.

On the day the news broke, Phoenix Group issued a notice, strongly pointing out that the 1995 million yuan loan from the Agricultural Bank of China would not be due until November 11, 27. Phoenix Group will sue the Agricultural Bank of China Jiangchuan Branch for this behavior.

Both sides have different opinions on this.

However, although the Jiangchuan branch of the Agricultural Bank of China did not do this in a very authentic way, it dared to do so because the Agricultural Bank of China had contract terms to endorse it.

There is nothing wrong with the announcement of Phoenix City Group. The development loan of its Rongxing Times Shopping Mall project was not due until November 1995, 11. However, when Phoenix City Group signed the loan contract with the Agricultural Bank of China, there was a clause in the contract that the loan must be repaid when the sales of the collateral exceeded 27%. In fact, almost all development loan contracts have such a stipulation. However, in actual operations, in order to maintain performance, banks generally do not allow customers to repay in advance.

Now the sales of the Rongxing Times Shopping Mall project of Phoenix Group has already reached 70%, which has already triggered the early repayment conditions. The Agricultural Bank of China Jiangchuan Branch has the right to ask Phoenix Group to repay the loan in advance. There is no problem with this at the contract level between the two parties. Therefore, the Jiangchuan Intermediate People's Court supports the property preservation request of the Agricultural Bank of China Jiangchuan Branch!

The final result of this dispute dealt a heavy blow to Gao Shan and the Phoenix Group, but this was just an isolated case. What really put the Phoenix Group into a desperate situation was the series of chain reactions it triggered!
Currently, the Phoenix City Group has ten projects. Apart from the two messes of Times Commercial Lane and Red Star Electronics in Jiangchuan, the most terrible one is the project in Huilongguan, Lijin City, the provincial capital.

The method used in the Huilongguan project was exactly the same as that of Hongxing Electronics. It also obtained the right to use state-owned construction land through bankruptcy reorganization, including land transfer compensation, land transfer costs and related expenses totaling 3286 million yuan. After some efforts, Huangcheng Group has raised 2270 million yuan of its own funds, but is still short of 1000 million yuan. At that time, Huangcheng Group urgently needed to pay the land transfer fee to ensure the start of the new project, otherwise it would face the crisis of abortion of the project and loss of the deposit.

After the project was reported to ICBC Lijin Branch, ICBC agreed to grant a loan to Phoenix Group after the land transfer fee was paid. However, before obtaining the land certificate for the project, the bank could not provide a loan due to insufficient collateral. Therefore, ICBC Lijin Branch recommended Phoenix Group to apply for a bridge loan through an investment bank, namely Lijin Commercial Bank.

Taking into account the strong desire of trust institutions to support enterprises in their new bidding for land development loans, Lizhen City Commercial Bank tailored a short-term financing plan for Huangcheng Group, setting three guarantee conditions: "the legal person and general manager of the company shall bear personal unlimited joint and several liability; Jiangchuan City Huangcheng Group Co., Ltd. and Jiangchuan City Huangcheng Commercial Real Estate Development Co., Ltd. shall bear third-party joint and several liability, and handle the mortgage of relevant real estate and vehicle property with a current value of 1000 million yuan under the name of the legal person Gao Shan", and invested 1000 million yuan of short-term funds with a validity period of 90 days for Huangcheng Group.

Through this business cooperation at that time, Huangcheng Group paid the land transfer fee of Huilongguan in time, the new project was smoothly promoted as planned, and the land certificate was successfully obtained. Huangcheng Group only needed to obtain approval from ICBC for the 3000 million yuan loan funds for project development to make up for the short-term dismantling of Lijin Commercial Bank.

The whole project went quite smoothly.

Now, because of the Agricultural Bank's disturbance, things have become extremely complicated.

First, the Industrial and Commercial Bank of China noticed the risk and failed to approve the application, which meant that it was unwilling to issue the previously agreed 3000 million yuan development loan to the Phoenix City Group. Meanwhile, the bridge loan from Lijin Commercial Bank was about to expire, and default was imminent!
Then, the run began!

Other banks that lent money to Phoenix City also saw Phoenix City's weakness and fatal problems at this time: Phoenix City Group borrowed from financial institutions and its aggressive expansion strategy over the years led to the company's excessive leverage, leaving no room for error! However, Gao Shan had a big setback in Times Commercial Lane and Red Star Electronics, and the sudden plunge of the Agricultural Bank of China triggered a series of negative butterfly effects.

Other banks could not sit still and tried every means to recover their loans and avoid bad debts. Therefore, they began to follow the example of the Agricultural Bank.

What a tough character is Gao Shan?

Of course I disagree!
Of course, the reality is that even if he agrees, he cannot afford to pay so much money to the financial institutions. Those development loans will either be turned into land payments to the finance department or turned into bricks.

A tug-of-war began between Phoenix Group and the banks.

The Phoenix City Group did not agree to repay the loan in advance, but the major banks had plenty of tricks up their sleeves. They simply forced the bank to pay back the loan by deducting the merchant's shop purchase money and rent.

This wave of chaos by financial institutions has completely disrupted the financing and sales of Phoenix City Group. First, Phoenix City Group cannot obtain new financing, and second, it has caused a more serious run on the bank. Suppliers who heard the news have also started to make trouble, and the pressure of capital outflow has increased sharply! Today, the cash flow of Phoenix City Group is on the verge of exhaustion, and the wages of employees can no longer be paid normally.

Under such circumstances, Phoenix City is on the verge of despair!

Early in the morning of that day, Gao Shan stood in front of the floor-to-ceiling window of his office on the top floor of Jinmao Building. The late spring sunshine quietly sprinkled on this big entrepreneur whose reputation resounded throughout Jiangchuan. He looked at the groups of pedestrians on the road like ants and fell into deep thought.

How can the Phoenix Group get through this crisis?
He never underestimated his opponents, and those who could be called opponents should not be underestimated. However, the underlying business model of Phoenix Group determined that the company had this fatal weakness from the day it was born. This fatal weakness is associated with expansion. This is the power of finance, the power of leverage! It can make a penniless person a billionaire in an instant, and it can also drag a billionaire into the abyss in an instant.

Zhang Yunqi is very clear about the business model of the Phoenix Group and has also grasped this fatal weakness.

Before going in, you have to pull him down into the abyss!

Gao Shan actually didn't know that Zhang Yunqi had come out yesterday morning. He had been busy dealing with the major banks these days, but his mind was still clear, able to penetrate the complex fog and grasp the key to the problem. He knew very well that it was difficult to reverse the decline of the Phoenix Group with his own strength. Now, the key to whether he could turn the tide lies in Yuan Qingsen.

He needs Yuan Qingsen to step in and settle this matter!

Only Yuan Qingsen, Jiangchuan No. 1, can handle it.

After throwing away the cigarette butt, Gao Shan turned around and went back to his desk.

He was about to make a phone call when his secretary Xu Yun brought him the latest newspaper of the day as usual. Unlike usual, Xu Yun was in a hurry: "Mr. Gao, there is news about Hu Xianxun and Zhang Yunqi in today's newspaper."

Gao Shan put down the phone and took the newspaper.

He just took a quick glance and saw the title "Hu Xianxun's inspection of Yunxi Village". His pupils constricted. Then, he saw the article "The Concept of Public Enterprise System Reform and Rural Land System Reform in the Context of China's Urban-Rural Integration Development". The author was Zhang Yunqi, Chairman of Liansheng Group!

Gao Shan reacted very quickly and immediately realized the chilling meaning in this.

His first reaction was that Zhang Yunqi had come out, otherwise Zhang Yunqi’s article would not have been published in the newspaper, let alone appear in the Jiangchuan Daily.

However, what makes people even more desperate is the news about Hu Xianxun's inspection of Yunxi Village! The deep meaning contained in it is already obvious, and it is simply the final conclusion of the dispute over the Jiangchuan model! It gives an ultimate answer to the problem between Yuan Qingsen and Yang Jiarong.

Gao Shan immediately picked up his cell phone and called Yuan Qingsen.

The phone kept ringing, but no one answered.

I don’t know how much time had passed. Gao Shan put down the microphone. The huge office was filled with warm sunlight, but he suddenly felt a sense of sadness.

******
Ps: Brothers, please give me monthly tickets! Let me achieve 2,000 monthly tickets this month.

(End of this chapter)