Chapter 2494: Reform Plan

The next day, Su Xinghui had a talk with Liu Yunqing. As soon as Liu Yunqing saw Su Xinghui, he shook his head and smiled bitterly, "Team Leader Su, I really drank too much yesterday. My head is still hurting until now."

Su Xinghui smiled and said, "It's happy, it doesn't matter if you drink too much occasionally."

Liu Yunqing said, "Yes, this matter is indeed a happy thing."

Su Xinghui said, "Mr. Liu, I'm afraid you still have to stay at the Yanfang Group for a while."

Liu Yunqing said, "Is it for the shareholding reform of the Yanfang Group?"

Su Xinghui nodded and said, "Mr. Liu is indeed an expert. You knew it as soon as I said it."

The Yanfang Group wants to carry out shareholding reform, and Liu Yunqing can indeed play a big role.

Now the leaders and many middle-level cadres of the Yanfang Group have been put under "Shuanggui," especially the finance department. Many people have big problems and are confessing their problems to the discipline inspection personnel. It can be said that the finance department of the Yanfang Group has basically been completely paralyzed.

The Yanfang Group wants to carry out shareholding reform, it must have accurate financial data. The Yanfang Group's family foundation must have accurate figures, and methods like debt-to-equity swaps and listing for financing are very professional, requiring professional personnel like Liu Yunqing to design plans and provide guidance.

Liu Yunqing asked, "What kind of shareholding reform plan does Team Leader Su tend to?"

Su Xinghui said, "This depends on the current specific situation of the Yanfang Group. Mr. Liu should be the person who is most familiar with the current specific situation of the Yanfang Group. It's better for you to help us design a shareholding reform plan."

After auditing the Yanfang Group for so long, Liu Yunqing is indeed the person who is most familiar with the current specific situation of the Yanfang Group, and he is a professional in this field. Su Xinghui naturally let him help design the shareholding reform plan.

After pondering for a long time, Liu Yunqing said to Su Xinghui, "Team Leader Su, the current status of the Yanfang Group is not optimistic. The debts owed are several hundred million, and due to the existence of the Guangda Trading Company, the Yanfang Group's supply and marketing network has been relatively severely damaged."

Su Xinghui nodded. Liu Yunqing hit the nail on the head. The Yanfang Group's problems are indeed very serious. Although these parasites of the company have been dug out now, this does not mean that all the Yanfang Group's problems have been solved. On the contrary, the Yanfang Group's problems are still very serious.

The Yanfang Group now owes several hundred million in debts, mainly bank loans and interest, payments to suppliers, electricity bills to the power bureau, wages for employees, etc. These debts generate huge loan interest every day, so every day that passes, this figure is increasing.

And what is even more serious is that the Yanfang Group's supply and marketing network has indeed been severely damaged.

Because the Guangda Trading Company monopolized about 80% of the Yanfang Group's supply and marketing business in recent years, most of the Yanfang Group's original relationships with suppliers and distributors have been broken.

Coupled with the Asian financial crisis in the past two years, many distributors doing foreign trade have collapsed, which has damaged the Yanfang Group's supply and marketing network even more severely.

The current Yanfang Group can be said to be on its last breath. Even if someone wants to invest, they have to weigh it when they see this situation.

And like bank loans, in the past two years, the state has been stripping off non-performing assets, allocating these stagnant and bad debt loans to specialized asset management companies, and letting them be responsible for collection.

And the collection methods of these asset management companies are also relatively flexible, mainly recovering the fixed assets of the debt-owing units for auction, or engaging in debt-to-equity swaps. In short, they will use various methods to revitalize these non-performing assets.

For the Yanfang Group, engaging in debt-to-equity swaps is of course the best method. Debt-to-equity swap means that the company's creditors turn their creditor's rights into the company's shares. If the principal and interest of the bank loans managed by these asset management companies are all turned into equity, these asset management companies will also become the company's shareholders.

Turning these bank loans into equity means there is no need to increase loan interest in the future, and the bank will no longer urge collection, which greatly alleviates the company's financial pressure. Otherwise, just these loan interests would crush the company.

However, in the current situation of the Yanfang Group, those asset management companies may not agree to engage in debt-to-equity swaps, because after turning creditor's rights into equity, they become shareholders of the enterprise. If the enterprise is not managed well, they don't even have creditor's rights. If the enterprise loses money and goes bankrupt, their equity will also be useless.

So, if Liu Yunqing wants to design a shareholding reform plan, he must consider the current situation of the company.

If the company's profitability is not strong enough, it is very difficult to find partners to carry out shareholding reform.

And the Yanfang Group's supply and marketing network has been damaged, and it has no start-up funds, and it owes so many debts. Who can believe in their future production and profitability?

Liu Yunqing said, "However, the Yanfang Group also has its own advantages. The Yanfang Group's machinery and equipment are still relatively advanced, and the Yanfang Group's workers have good quality, and now their work enthusiasm is also quite high. As long as credit is re-established, the establishment of the supply and marketing network is also a matter of course, so it should still be possible to find suitable partners."

"My current idea is to try debt-to-equity swaps, try to reduce the Yanfang Group's debt pressure, sign repayment agreements with those creditors who are unwilling to engage in debt-to-equity swaps. In addition, we can also convert the wages owed to employees into their equity, letting them also become the true masters of the enterprise. In this way, they can become the true masters of the enterprise."

"If these employees have extra funds to invest in the company, that would be even better. In that case, the company can obtain a relatively large amount of start-up funds. Just say that 30,000 employees invest an average of 1,000 each, that's 30 million!"

"Of course, if we can find a powerful investor to invest in the company, that would be the best. According to my estimation, if the Yanfang Group wants to successfully resume production, it must have at least 200 to 300 million in start-up funds. So, there must be that kind of powerful investor. I see, that Mr. Yu should be the candidate you found, Team Leader Su, right?"

Su Xinghui smiled and nodded, "Yes, he is indeed the partner I found who has the intention. However, this also depends on the conditions he offers. If they are too harsh, I won't cooperate with him."

Liu Yunqing nodded and smiled, "Team Leader Su is truly selfless!"

Su Xinghui put away his smile and said, "The Yanfang Group is too difficult, it can't afford to be tossed anymore. Mr. Yu and the others don't care about these things. Besides, I think the Yanfang Group's prospects are quite good. If they really invest in the Yanfang Group, they will definitely make a big profit in the future. Of course, this is also a win-win cooperation for both sides."

Liu Yunqing said, "Okay, then I understand. I will continue to stay at the Yanfang Group, and I will also make the shareholding reform plan for the Yanfang Group as soon as possible."

Su Xinghui said, "Thank you for your hard work, Mr. Liu. Now the situation of the Yanfang Group is not very good, and there is no money in the account, so this time your remuneration may also have to be owed. After the company is on the right track, I will let them pay you first."

The audit project that Liu Yunqing did this time, plus the shareholding reform plan and guidance for the Yanfang Group, the total cost is at least several hundred thousand. For the current Yanfang Group, this is not a small figure. Now letting them pay the fee to Liu Yunqing, they really can't pay it.

Liu Yunqing smiled freely and said, "It's okay, let it be owed. I haven't reached the point where I can't open the pot for the time being."

Su Xinghui shook his head and said, "I'm really sorry, the Yanfang Group has reached the point where it can't open the pot now. The living expenses for the employees next month still have to be borrowed. And those electricity bills and coal money are still owed."

Liu Yunqing said, "I certainly understand this. The Yanfang Group is at its most difficult time now, but this is also the darkness before the dawn. I believe the Yanfang Group will definitely get better."

Liu Yunqing started to make that shareholding reform plan for the Yanfang Group, and Su Xinghui found Yin Deshan and Gu Zhilin again. He told the two that he wanted the company's employees to convert the wages and living expenses owed to them by the company into equity and invest in the company. ===== CHAPTER 2496 =====