Nominal: My senior brothers are all big shots

On the open ground at the entrance of Dafeng Factory, a temporary stage was erected, and a huge banner hung above it: "Dafeng Factory Shareholders' Meeting".

At the very center of the stage sat Gao Xiaoqin from Shanshui Group, dressed in a dark business suit. To her left were worker representatives such as Chen Yanshi and Zheng Xipo, and to her right were the legal and other department leaders of Shanshui Group.

Below, the densely packed crowd includes not only representatives of the shareholding workers, but also a large number of ordinary workers concerned about their future.

On the stage, Gao Xiaoqin adjusted the microphone to a suitable height. Looking around the room, she said, "Dear colleagues and shareholder representatives, I am Gao Xiaoqin from Shanshui Group. Today's shareholders' meeting has only one agenda item—to discuss the employee resettlement issue before the bankruptcy liquidation of Dafeng Factory."

An uproar immediately erupted in the audience, with some shouting, "We want jobs! We don't want resettlement!"

Gao Xiaoqin raised her hand to signal for silence. "I understand how everyone feels. But before we discuss this, please allow me to release some data."

The projection screen behind Gao Xiaoqin lit up, and the first chart showed Dafeng Factory's financial situation over the past five years:

"In 2010, Dafeng Factory lost 1200 million yuan; in 2011, it lost 1800 million yuan; in 2012, it lost 2400 million yuan; and in 2013, last year, the loss reached 3100 million yuan. Currently, the factory's cash flow has dried up, and it owes suppliers a total of 4700 million yuan and has overdue bank loans of 2900 million yuan."

"This is also the reason why your boss Cai Chenggong used Dafeng Factory's shares as collateral for a loan to our Shanshui Group. I don't know why Cai Chenggong didn't use this money to repay the debts to the bank and suppliers, but now Dafeng Factory and Cai Chenggong can't repay this money. According to the mortgage agreement, 60% of Cai Chenggong's shares belong to our Shanshui Manor. That's why I'm here today to preside over this shareholders' meeting."

The audience gradually quieted down.

"According to the Enterprise Bankruptcy Law, Dafeng Factory has met the conditions for bankruptcy." Gao Xiaoqin switched to the next page, "But Shanshui Group, as the major shareholder with 60% of the shares, is unwilling to simply apply for bankruptcy. Because once bankruptcy liquidation occurs, according to the order of repayment, the employees' wages and economic compensation will be ranked after the bank and taxes—at that time, they may not get anything at all."

This caused an even bigger commotion. Chen Yanshi stood up. "President Gao, what solutions does your Shanshui Group have?"

"That's a good question, Mr. Chen." Gao Xiaoqin nodded. "Our proposed solution is to use all of Dafeng Factory's assets to prioritize the resettlement of its employees."

Gao Xiaoqin pulled up the third image, which was a detailed list of Dafeng Factory's assets. "Dafeng Factory currently has three main assets: First, 120 acres of industrial land in the factory area, with an appraised value of 5000 million yuan; second, factory buildings and equipment, with an appraised value of 800 million yuan, but the actual cash value may only be 300 million yuan; and third, accounts receivable, which have 900 million yuan on the books, but most of them are uncollectible."

"The total assets are worth about 5800 million." Gao Xiaoqin paused, "And according to preliminary calculations, the economic compensation for the 1200 employees of Dafeng Factory, calculated according to the N+1 standard, is about 9800 million."

"That's not right, is it? The land where Dafeng Factory is located is worth a billion yuan now!" someone in the audience retorted.

"The premise for the Dafeng Factory land to be worth 1 billion yuan is that it is commercial land, but currently it is still industrial land, so we can only calculate it as industrial land," Gao Xiaoqin immediately explained.

"Then can we wait until this land becomes commercial land before discussing it again?" Wang Wenge stood up and asked.

"That's also acceptable. However, according to regulations, converting industrial land to commercial land requires a land transfer fee. Based on the land's value of one billion yuan, the transfer fee would be 5.7 million yuan. Our Shanshui Group will contribute 3.42 million yuan, and you, the worker shareholders, will need to contribute 2.28 million yuan."

An uproar erupted in the audience. Someone shouted, "2.28 million? How could we possibly come up with that?"

"This is precisely the core of our discussion today," Gao Xiaoqin said solemnly. Her gaze swept over every anxious face in the audience. "Therefore, today we not only need to argue about how much that land might be worth, but also to address the most realistic and pressing issue at hand—the livelihoods and future of 1200 workers."

"So regardless of what the future holds, the fact remains that the factory is currently shut down and wages are not being paid," Gao Xiaoqin said sincerely. "As the current shareholder, Shanshui Group is willing to advance 300 million yuan in emergency living allowance, which will be distributed to all registered employees within the next week to alleviate their immediate needs. This money will not need to be repaid, regardless of any subsequent plans."

A murmur rippled through the audience, easing the tense atmosphere slightly. Giving money directly was the most tangible signal.

Gao Xiaoqin switched the projector, and a clear flowchart appeared on the screen. "At the same time, based on the current situation, Shanshui Group proposes two solutions for everyone to choose from."

Gao Xiaoqin pointed to the projection, "If everyone firmly believes in the future value of the land at 1 billion yuan and is willing to share the risks, then we need to face reality together."

"1. Shanshui Group will immediately initiate the application process for converting industrial land to commercial land and will advance all application fees."

"2. The total land transfer fee is estimated at 5.7 million yuan. According to the shareholding ratio, Shanshui Group will bear 3.42 million yuan, and employee shareholders will bear 2.28 million yuan."

"3. Employee shareholders are required to raise RMB 2.28 million after the land use change is approved and before the deadline for land transfer fee payment. If they fail to pay the full amount on time, they will be deemed to have automatically waived their corresponding rights, and their shareholding will be transferred to Shanshui Group in accordance with the agreement to offset the amount due."

"4. During this period, all employee resettlement issues will be suspended, and no compensation will be paid."

Gao Xiaoqin paused, allowing the workers to process these harsh conditions. "Choosing this path means that everyone must collectively raise 2.28 million yuan in cash and accept a long and uncertain approval process. During this period, there will be no income."

The audience was completely silent. The 2.28 million and the long wait were like two towering mountains.

"If you think raising 2.28 million is unrealistic, are unwilling to wait a long time, and hope to receive tangible compensation as soon as possible, then please take a look at this plan."

"1. We will no longer pursue the conversion of land use rights; instead, we will liquidate the assets based on the current value of industrial land."

"2. Total assets are approximately 5800 million, which will be prioritized for paying employee severance pay. The shortfall is approximately 4000 million."

"3. According to the Company Law, the shortfall shall be borne by the shareholders in proportion to their share. Shanshui Group shall bear 2400 million yuan, and the employee shareholders shall bear 1600 million yuan."

"4. Employee shareholders can use the value of their shares, which is estimated at approximately 2000 million, to offset the 1600 million liability. After offsetting, Shanshui Group will not only be responsible for making up the entire 9800 million compensation, but employee shareholders will also not need to pay a single penny in cash. On the contrary, because the value of their shares is higher than the liability, they will share approximately 400 million in residual value according to their shareholding ratio."

"This means that if this path is chosen, all employees will receive the full amount of legally mandated economic compensation within one month of the resolution's passage."