One of China's Richest Men Cannot Repay Banks, Suspected of Illegal Fundraising

The entire financial system in Guangxi province is in a state of emergency as one of the richest men in China is facing the bankruptcy of his company, in addition to charges of illegal fundraising.

At the end of 2013, every law firm in Liuzhou was already working on various lawsuits on behalf of creditors suing the Zhengling Group. The firms is estimated to owe ￥7 billion to banks and ￥3 billion to private lenders. The Zhengling Group is highly profitable. In fact, looking at the numbers in the story I couldn't figure out how the firm could be anywhere near bankruptcy (debts could be paid off with a few years of profits), but then it says that interest rates on private debt went from 20% per month to 70% per month in early 2014. Since he was such a good credit risk, everyone wanted to lend Liao Rongna money......

This is a complex story that Google doesn't translate very well. Hopefully there will be some English coverage later in the week. 柳州首富非法吸储成员集体失联 多单位连夜开会