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Last summer, creditor Ding Zhenyuan sold his villa, scraping together tens of millions of yuan to maintain corporate cash flow and defend listed companies. The debtor Zhuang Yongde also spent tens of millions of yuan, bought two villas for his son and daughter-in-law, successfully transferred the assets again.
One creditor and one debtor have their lives upside down.
Over the past year, I have had three interviews with Ding Zhenyuan, in Shenzhen, Beijing and Changsha. Every time I saw him, I felt sad. Each time has the wife to accompany, two people tone is peaceful, slow down has the basis, before discussing is more tacit understanding.
Ding Zhenyuan was born in September 1964 in Jinjiang, Fujian province. He was naturalized in Hong Kong in 1987, but his career was still in Quanzhou, Fujian province. Ziwo Holdings, the couple’s de facto holding company, landed on Singapore’s main board in 2009 and is already wealthy. That same year, he provided loan guarantees for his business partners, Zhuang Yongde and Zhang Hongcheng. Ding and his wife’s cash flow and happiness fell into a double mire for as long as 7 years.
In these 7 years, the lawsuit of two people from Jinjiang to Quanzhou, from Fuzhou to Beijing, although the amount is not big, but occupied a whole four levels of judicial resources. A civil dispute, which can not be simplified any more, has formed a long and difficult power game between the public security law due to the strong intervention of hidden power.
In Ding zhenyuan’s story, it seems that the public security law is neither a tri-sided affair nor a tri-legged one. The police power is too domineering to let things go in a cycle.
In fact, in the economic downline, similar to the private lending things emerge, the police power to intervene in civil economic disputes is prohibited by law. However, the contract is difficult to be repeated, the rule of law is not clear, if the financial power is not guaranteed, “shock bow flight effect” is inevitably geometric amplification.
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Zhuang Yongde, three years ding’s senior, was a “character” in Jinjiang, Quanzhou, praised or blamed for his goodwill.
Before joining the blacklist, Zhuang Yongde was mainly in the name of Hengfa Municipal Engineering construction Co., LTD. The company, which appears to be state-owned, is in fact jointly owned by Zhuang Yongde, His wife Zhang Hongcheng and their son Zhuang Donghui. In filings with the government, Hengfa described itself as a state-level municipal highway construction company, with a net worth of nearly 100 million yuan, and acquired Yunnan Road Construction Group Co in 2008.
In December 2009, Zhuang Yongde and Zhang Hongcheng borrowed money from Jinjiang Hengcheng Small Loan Co., Ltd. on the pretext of investing in Yunnan Expressway. On the other hand, Zhuang Yongde asked Ding Zhenyuan to guarantee the project under the pretext of introducing the project, and The Couple got a 37.4 million yuan loan.
As Zhuang Yongde refused to repay the loan within the agreed time limit, Ding Zhenyuan, as a guarantor, assumed joint liability, according to the amount determined at the time of judgment, to repay the principal of 37.4 million yuan, plus more than 6 million yuan in interest and penalty interest.
No matter how much Ding Zhenyuan urged, Zhuang Zhang and his wife never paid attention to the matter of debt repayment, but secretly already “take the initiative”.
On February 27, 2012, Zhuang yongde brought Ding and zhihe Technology Co., a company owned by his company, to court. Zhuang sued, claiming that during June 29, 2010, solstice, and April 15, 2011, ding zhenyuan and zhonghe technology borrowed 35 million yuan from zhuang yongde for 38 times. “Zhonghe Technology issued the iOU to Zhuang, and the two parties agreed on the monthly interest rate of 2.7%, but did not agree on the repayment period.” Zhuang yongde demanded that Ding pay off 35 million yuan of principal and 11.592 million yuan of interest.
The sum was roughly equal to the debt he had previously paid for him.
Seemingly absurd things, but from quanzhou Intermediate Court and Fujian High Court, to the Supreme Court, the three levels of the court have almost unanimous decision: Zhuang Yongde can not prove the occurrence of these debts process.
As Ding Zhenyuan has testified, Zhihe Technology is a foreign-funded company with high credit in the bank, so there is no need to make private loans at high interest rates. Moreover, 38 transactions with a total amount of 35 million yuan are cash transactions instead of bank transfers, which does not conform to the business habits and management norms of listed companies.
The leader’s land assignment instructions to the company under the name of Zhuang Yongde
In addition, Ding Zhenyuan presented zhonghe’s listing certificate, credit granting contract and enterprise credit, etc., to prove that the company’s own funds and credit funds were quite abundant during the borrowing period.
In addition, the court also held that Zhuang Yongde could not provide each remittance or iOU voucher under the premise that Zhihe denied the above 38 loans; The official seal on the PROMISsory note and to and the official seal of science and technology, such as the letter “ZHIHE” engraved into “ZHIHB”.
At this time, the police power appeared for the first time in a protective manner. To and technology that Zhuang Yongde is suspected of secretly engraved official seal forged iou, then reported to the Public Security bureau of Quanzhou city. The court also hoped that the police would come forward to investigate, but the police did not file a case.
The case began with Zhuang Yongde to withdraw the case and the end, shortly after, he again, until the second time to enter the Supreme Court, was rejected, and ruled that Zhuang Yongde to bear more than 270,000 yuan of costs of the second trial.
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At the beginning of the lawsuit, Ding Realized the importance of the law. In the struggle to cope with Zhuang Yongde’s appeal at the same time, also opened the road of counterclaim.
Mr Ding, a Hong Kong citizen, has had his Hong Kong case delayed. For the 37.5 million yuan debt, Ding according to the court filing standards for the split, 20 million yuan entered the Fujian Provincial High Court, 17.5 million yuan in quanzhou Intermediate Court.
On September 10, 2013, The Quanzhou Intermediate Court sentenced Zhuang Yongde to return Ding Zhenyuan’s 10 million yuan of principal and more than 930,000 yuan of interest penalty interest. If the payment is not made within the agreed time, the penalty interest shall be doubled.
In December of the same year, the Fujian Provincial High Court ruled that The hengfa Municipal corporation under Zhuang Yongde’s name should repay 20 million yuan of the principal and interest of 1.56 million yuan within 10 days, and Zhuang was liable for the third of the debt that could not be repaid.
Zhuang Yongde appealed one by one, and each appeal was not the same, almost using the cause and procedure to the extreme. For example, for the 20 million yuan debt judgment, Zhuang appealed to the Supreme Court. In 2014, the Supreme Court upheld the original judgment, and Zhuang yongde was responsible for the compensation of more than 150,000 yuan. Zhuang also lost his appeal to the provincial High Court over the 10 million yuan debt.
Around the identification of interest penalty interest, there have been 580,000 yuan, 869,000 yuan and 7.4 million yuan three versions.
Even after the Supreme Court’s decision on the 38 funds ended, Zhuang Yongde remained committed and in 2014 applied to the Fujian Provincial people’s Procuratorate for supervision on the grounds that he was not satisfied with the decision. The latter issued a letter of decision not supporting supervision, “Finally, in the process of application for supervision, Zhuang Yongde advocated that the loan in dispute was transformed from the cooperation agreement, which essentially denied the real existence of the loan relationship in dispute.”
Such a long litigation period, Zhuang Yongde, Zhang Hongcheng couple began to transfer assets.
The letter from quanzhou Intermediate Court stated that zhuang Yongde began to transfer his property in the course of the execution of the two cases on December 24, 2014
First, refusing to go to the court to explain the situation and declare the property, he held a grand wedding for his daughter Zhuang Juru in January 2014.
Second, on March 27, solstice, on April 2, 2014, he transferred his 25.51% equity of jinjiang hengwei shoe and plastic development co., LTD at a discount of RMB 2.551 million to zhang jiakang (zhang hongcheng’s brother).
Zhuang yongde’s domineering does not stop at his actions. He bluntly told Ding Zhenyuan and even the executive judge: “I have spent more than 10 million yuan in the public security bureau. You can’t do anything about it.”
Rather than pay back the huge legal and public relations fees, which people close to him say Mr Zhuang thought he could get rid of the huge debt by intervening with his power to enforce the case. This had not been impossible before, but unfortunately he came across a new system.
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Zhuang yongde exhausted all judicial proceedings in both cases, leaving only the last link — execution. To his surprise, the court system now operates a nationwide database and blacklist of defaulters.
Zhuang’s luxurious wedding became a hot topic on the streets of Jinjiang in January 2014, and two weddings were held, one at home and the other at the Honor International Hotel. Zhuanru cloak gold and silver dowry map, but also online top posts. Zhuang Yongde and his wife squandered and gave her a huge dowry without compensation.
Zhuang Yongde this rich do not return “Lao Lai” act, forced the court decided to move.
On February 19 that year, yuanxiao just passed, The Intermediate court of Quanzhou city on the execution of the two cases – Zhuang Yongde, Zhang Hongcheng and his wife were both included in the blacklist, and made a decision to detain them for 15 days each.
Notice of Assistance in Detention issued by Quanzhou Intermediate Court to Jinjiang Public Security Bureau in 2014
The execution party of the detention is the Public security bureau of Quanzhou city, no surprise, Zhuang Yongde managed to escape, his wife Zhang Hongcheng was detained for 15 days. The court seized and disposed of the two apartments no. 1119 and No. 1121 in Yajiang International Building under the name of Zhang Hongcheng, investigated and punished zhuang Yongde whose car license plate number was MinCC0009, and 650,000 yuan in cash. The implementation of the two projects was about 1.3 million yuan, but most of the principal and interest could not be implemented.
To take this breathing space, on March 27, solstice, April 2, 2014, zhuang yongde transferred the 25.51% equity of jinjiang hengwei shoe and plastic development co., ltd. under his own name to his brother-in-law zhang jiaxin at a discount of 2.551 million yuan.
In April 2015, the Fujian Provincial High Court, in accordance with the Supreme Court’s judgment, sealed up and froze four land use rights applications under the names of Zhuang Yongde and Hengfa Municipal Enterprises, of which hengfa municipal property was worth 21.56 million yuan and Zhuang Yongde’s property was worth about 7 million yuan.
But it is a pity that these are the contents of the urn, but they are still missing. In particular, a piece of municipal land of hengfa located in meiling Industrial zone, 20 mu, was recently expropriated by the government, but the money has gone nowhere.
Even if the procuratorate and the court, also can only express helpless.
An old dog’s umbrella
Under the supervision of the prosecutor, on August 5, 2015, the Public letter of the Quanzhou People’s Procuratorate said that the Intermediate Court of Quanzhou urged the Public security Bureau of Quanzhou city to handle the case according to law.
In March, Quanzhou Intermediate Court issued a letter of Investigation on Zhuang Yongde’s refusal to carry out the Verdict and ruling transferred to the PUBLIC Relations authority: “Zhuang Yongde flouted the national law, refused to perform his obligations, and avoided execution for a long time, leaving his whereabouts unknown.”
“Zhuang yongde’s evading of execution has seriously damaged the judicial authority, trampled on the dignity of the law and caused a bad social impact.” The Intermediate Court of Quanzhou city held that, “Zhuang Yongde, the person subjected to execution, has the ability to perform but refuses to perform, and the circumstances are serious. His behavior is suspected to constitute the crime of refusing to execute the judgment or written order, and now his criminal clues are transferred to your bureau for investigation.”
However, The Quanzhou public Security bureau has yet to take Zhuang Yongde into custody. The procuratorate and the court urged the public security Bureau to reply that “it will not harm the society”.
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A review of the archives reveals that Zhuang Yongde’s debts were not limited to Ding Zhenyuan.
He has a very high reporting rate in Quanzhou. Among his creditors, Wang Jingke has more than 6 million yuan and Wu Qingqing has more than 26 million yuan. These two people have been filing petitions in Jinjiang and Quanzhou, and both the provincial and municipal complaint reporting departments have two reporting materials.
Besides Hengfa City, Zhuang Yongde’s companies are also being transferred or entrusted to others — not many people he can trust are said to have been excluded, even his daughter and son-in-law.
Of the 50 million yuan in registered capital, son Zhuang Donghui and daughter-in-law Lin Jinshuang, 35 million yuan, were set up in December 2012, when Zhuang Ding’s lawsuit was underway. As for other assets, the transfer has been completed, such as some housing demolition funds and land transfer funds, are directly into the account of Zhuang Donghui.
Ding Zhen long accused said in the book, the victim to and holding as well-known overseas listed companies, the balance for generations, have paid nearly one hundred million yuan of the principal, interest, penalty interest and bank interest, operating because of worsening ZhuangYongDe couple behavior, facing the company cash flow fracture, the production and business operation in normal, hundreds of employees wages can’t pay for the serious situation; Listed companies are also regulated by SGX and are at risk of being delisted.
On October 10, 2016, Ding Received a notice that the case of Zhuang Yongde refusing to carry out the judgment and ruling had been returned to the police by the prosecutor, requesting that the case be returned to the police to make up for the investigation. Once the police delay or fail to provide new evidence, the case may reach a deadlock.
Had it not been for the blacklist, the situation would have been even worse. However, laolai can’t use their ID card to travel on high-speed trains and planes, but they can still use a passport instead. This means that Zhuang Yongde, if not detained, is still free to leave the country.
Ding Zhenyuan’s experience is a warning.
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