1. The purpose of issuing bonds by Brilliance Auto Bond Default Company is to raise funds and make the enterprise realize further changes. The idea that shareholders buy bonds is that they can make a profit. However, Huacheng Company's default of 654.38+billion bonds obviously made these shareholders lose all their money, which would deal a fatal blow to the reputation of Brilliance Company. And the person in charge of Brilliance Company also said that there are indeed financial problems within the group, so no action has been taken to realize bond redemption, but measures are being taken to give you an explanation. But the person in charge won't talk for long, and I don't know if it's a bad check. After all, it's been three years now, and the group still hasn't succeeded, which also makes many buyers have considerable concerns.
Third, the collapse of the company's word of mouth From the current situation of the capital chain of Brilliance Group, it is indeed a temporary difficulty. It is normal for bondholders to feel anxious. After all, they have invested their money and are worried that the company will eventually close down. Although the group issued a statement before this breach of contract, it did not reassure people, and word of mouth also suffered a big collapse. Even if the follow-up promises are successfully fulfilled, the influence is not as good as before. Brilliance Group is quite famous in China. After all, BMW Brilliance is still a well-known car, and the delay in debt exchange has also caused other bonds to plummet to the bottom.
Third, the company is in business crisis, and BMW Brilliance is also the main source of funds for this group. But now Brilliance Group has lost its core products, lost its former scenery, and even through long-term borrowing companies, the debt pressure is great. With such a large debt, it is actually very unfavorable for the company to turn losses into profits.