The deal is legally binding. And large portions of the deal pertained to what happens if Foxconn backed out.
There’s even a clause that says if the company is dissolved, the owners will be personally liable for the debts.
So how is Foxconn not paying?
So, I don't think there's a realistic scenario where Foxconn does not pay if they don't file for bankruptcy.
If they file for bankruptcy, then it can be Chapter 11 (restructuring), or Chapter 7. In case of Chapter 7, their assets are ringfenced inside an estate. There is no need for civil asset forfeiture. If it's Chapter 11, then the bankruptcy judge need to agree that there is a reasonable chance that the creditors are better off if the restructuring goes ahead than if liquidation takes place.
However, if they fail to pay, but don't file for bankruptcy, then yes, civil asset forfeiture is definitely in the cards.
It's all just a silly intellectual exercise. We are talking about $36 MM spread over 20 years, or $1.8 MM per year. Foxconn has (according to wikipedia) revenues of about $200 BN per year, and net income of about $4.5 BN.
It's not their bond. It's the state's bond.
> We are talking about $36 MM spread over 20 years, or $1.8 MM per year.
It's $36M annually spread over 20 years. $36M per year, not $1.8M per year.
"Foxconn agreed to pay $36 million annually across a 20-year term to pay for the surrounding infrastructure supporting the now-abandoned 3,000-acre site."
Also, the bonds were for infrastructure for the potential foxconn site. If foxconn isn't going to use the site, they aren't paying for any infrastructure. Especially when the state is looking for new occupants for the site.
"Those payments are scheduled to start next tax year, and local leaders told the newspaper they're counting on Foxconn's cash to maintain the site while they try to attract another occupant."
We've stolen billions from taiwan already by forcing them to buy our useless weapons. I'm guessing the taiwanese are sick of being taken advantage of.