Chapter 254 Insolvency [Request for a refund]

"Noisy."

"Look at you, a girl, holding a pair of tongs to face the guests, what kind of words do you think?"

"Go out and cook."

"Grandpa."

"It's no use calling grandpa. If you don't go out, I'll go out and call your parents to ask them to pick you up."

"No, no, okay, okay, I'll go cook now, is it okay to cook?"

The old man pushed the girl out the door.

Although the girl was not very willing, she finally gave in after the old man threatened to call her parents and take her back.

Her name is Li Rou, she is 18 years old and has just finished the college entrance examination.

Because I lived with my grandfather when I was a child, I am particularly close to him.

Moreover, ever since my grandmother passed away, my grandfather has been all alone, and he has difficulty walking.

He doesn't know how to take care of himself at all.

So, ever since she became more sensible, starting from junior high school, she would come to her grandfather's house to stay for a while during every summer and winter vacation, helping her grandfather cook and wash clothes.

Especially in recent times.

After the cotton textile factory managed by my grandfather completely stopped production, the old man became extremely stressed and could hardly sleep for whole nights.

I watched with my own eyes as my grandfather's half-black and half-white hair turned completely white in less than half a month.

She saw it with her own eyes and felt the pain in her heart.

So, in recent times, whenever someone came to my grandfather to collect a debt, she would try every possible means to get the person away.

She just wanted her grandpa to sleep peacefully and stop suffering like this. If he continued to suffer like this, what would she do if something happened? How would she explain to her parents who were very busy at work?

And she wasn't lying.

She knew what kind of person her grandfather was since she was a child, and he was never willing to take advantage of the public even a penny.

When my grandmother was still alive, she never owed any foreign debt.

After my grandmother passed away, my grandfather neither hired a nanny nor remarried. He ate and lived in the factory and had no money to spend. How was it possible that he suddenly owed so much foreign debt?
The only answer is that the money was spent elsewhere.

So where would that be?

Last year, during the summer vacation, Li Rou came to her grandfather's house to help him cook and do laundry.

I often hear my grandfather talking about it.

It is said that since the textile factory began to decline, life is becoming increasingly difficult.

Many of the workers in the factory have stopped working.

In the past few years, the factory gritted its teeth and was able to give some minimum living allowance to the workers who did not go to work.

But now, the minimum living allowance has also stopped.

No job.

There is no minimum living allowance anymore.

Some people want to buy out their years of service. Although the factory has approved it, there is no money in the factory account. What can they do?
In the end, they could only rely on government relief to survive.

But the government’s relief funds are intermittent, sometimes they are issued and sometimes they are not.

This is already very difficult for an average family.

What's more, it is a family with disabled people.

What if I get sick and need to be hospitalized, get injections and take medicine, where will I get the money?

Are you waiting to die?
After grandpa had been nagging for a long time, one day he suddenly stopped nagging.

She thought the trouble had been solved.

Now it seems that the trouble has been solved. But that only solved the troubles of the worker brothers and sisters, and grandpa's troubles have just begun.

"Sit down, young man."

After sending away the troublesome granddaughter, the old man motioned Lu Yang to sit down and continue talking.

"Don't listen to that girl. Actually, this is what happened. Last year, the factory couldn't pay out living allowances, and the city happened to have a problem with the distribution of relief funds. As a result, many workers who were temporarily suspended from work had no food to eat and couldn't afford medical treatment. I was thinking about finding a way to go to the bank to borrow some money to solve the immediate problem.

But the bank refused to lend money.

It is said that our Fuli Cotton Textile Factory has been insolvent for a long time. The reason why it has not gone bankrupt or been liquidated is entirely due to the requirements of our superiors and out of sympathy. This is because our factory is a welfare factory and is related to the survival of more than 100 families of physically disabled people.

They can refrain from collecting debts on previous loans and extend repayment dates indefinitely.

But forget about getting a new loan, because no one can take the responsibility and sign it.

I contacted many banks and they all said the same thing.

In the end, I really had no choice but to act as a guarantor for the factory myself.

If the factory cannot repay this new loan, I will bear the responsibility personally.

Now you can see that I am shooting myself in the foot." After hearing this, Lu Yang was a little surprised and said, "Director Geng, this is not right. You know that the textile factory has become like this now and there is no way to repay the promised loan. Why do you still want to be the guarantor yourself?"

A pure goody-goody?
That's not right. If they were really just good people, they would have to pay anyway, so why would they need to take out a loan in the name of the factory? Wouldn't it be enough if they could just take out a loan themselves and pay the workers?

The old man smiled bitterly and said, “But I had no choice. At that time, there were already working-class families who could not eat, could not afford medical treatment, and were waiting to die at home.

I just couldn't bear it.

Second, I didn’t borrow much money at the time, only 18000 yuan in total.

After all, I am not a big boss. Even if I became the factory director and even if I was willing to be the guarantor, the bank did not trust that I could repay the loan. In the end, I had to persuade and talk a lot before I was able to loan them the 18000 yuan.

You may say that even if it is 18000 yuan, it is not a small amount. When you took out the loan, did you ever think about how to pay it back?

Actually, I really thought about it at that time.

Although Fuli Cotton Textile Factory is now insolvent, it was once glorious. The machines in the factory are antiques, with a history of thirty or forty years, but they are still usable and the quality is completely fine.

In addition to the fact that the woven cloth is somewhat rough and the style is outdated, it is no longer very popular among the Chinese people.

But it is not impossible to improve.

I have done some calculations. If we can introduce 50 yuan of external funds, upgrade the old machines in the factory, eliminate some completely unnecessary departments, lay off 1/3 of the management, and 1/5 of the lagging workers...

In this way, maybe this factory has a chance to revive.

Since last year, I have been writing letters to the higher-ups. Whenever I attend meetings, I express my views every time.

If the Welfare Cotton Textile Factory wants to have a way out, not rely on government relief, and not cause trouble to society, it must complete the salvation of the welfare workers themselves.

How to redeem?

Carry out comprehensive factory restructuring.

Isn’t it being advocated everywhere now that the government should withdraw and the people should take over?
Then let’s also let the government retreat and the people advance.

With the old sign of Fuli Cotton Textile Factory and the nearly 10 acres of land under our feet, why can't we introduce private capital or even foreign capital?
Even if they are all sold.

As long as it can help welfare recipients redeem themselves, and workers have enough to eat and can afford medical treatment, what's wrong with that?"

What the old man said was very radical.

His hair was all silver, standing up like a hedgehog, and his beard was the same color as his hair. He had just drawn countless eights with it.

“Is it because of the rigid requirements of the Disabled Persons’ Federation that scared away the investors?”

Lu Yang suddenly interrupted and said, "So, old man, your restructuring plan failed from the beginning. And the loan that you thought you could repay soon was completely gone. Now you are forced to hide from your debts every day?"

The old man blew his beard and glared, "Young man, how did you know?"

Lu Yang did not answer and continued to ask him: "What about the other creditors? Didn't you just say that you only guaranteed a loan of 18000 yuan for the factory?"

The old man had nothing to hide.

He waved his hand and said, "Who else could it be? The salesperson from the upstream raw material supplier.

"I have worked in the fabric industry for 40 years and I am very familiar with the people and things in this industry. Therefore, many people would give us credit for my sake, even when our factory was in the most difficult times. However, we may have given too much credit in the end. After the factory closed down, everyone suddenly realized the situation and put the blame on me. They insisted that I cheated them and asked me to compensate them for the raw materials or pay money. How could I compensate them?"

Lu Yang asked cautiously, "How much money does Fuli Cotton Textile Factory owe to the bank and our upstream raw material manufacturers? Is it insolvent, or is it insolvent? If we sell all of you, you can no longer pay it back?"

Lu Yang found that he had originally thought too simply.

For a factory with ordinary wages, even if it is a state-owned enterprise, the bank will never lend money to it as long as it is insolvent.

However, this welfare cotton textile factory obviously cannot be regarded as an ordinary factory. Its existence has extraordinary significance. A welfare factory is naturally in a disadvantaged position.

It is a force that society must care about.

Even for the sake of stability.

Yes, stability is above all else.

When it encounters operational difficulties, as long as there is still a glimmer of hope, it will do so even if the bank no longer wants to lend to it.

For this glimmer of hope.

Many invisible and intangible hands will appear at this time and begin to regulate the normal operation of businesses from top to bottom, placing bets and influencing banks, causing them to continue lending to banks regardless of the risk of bad debts.

Until it can no longer be saved.

And the consequence is...

The huge debt has completely blocked the path of enterprise reform.

With so much money owed, even if they sold it twice, it might not be enough to pay it back. At this time, what's the point of talking about reform, state-owned enterprise withdrawing and private enterprises advancing? Who would dare to join in easily?

Unless you don't have to pay back the bank's debts and the money owed to upstream raw material suppliers, only a fool would take out real money to fill this hole, no one knows how deep it will be.

now think of it.

The Fuli Cotton Textile Factory has repeatedly proposed restructuring, and the city has repeatedly agreed.

But the progress is not optimistic.

In addition to the rigid indicators of the Disabled Persons’ Federation, it seems that the real reason ultimately lies in this.

(End of this chapter)