GBP Chapter 363 Losing everything
Chapter 363 Losing everything
"Alright, Mr. Jiang, we'll do as you say. But the payment method has to be my way."
Jiang Tiansheng said, "Boss Zhu, we also need to discuss the payment method."
I propose that our Paramount Company pay a 20% down payment, with the remaining 80% to be paid in three installments over three months.
Zhu Baiqi hesitated for a moment, weighed the pros and cons, and nodded in agreement: "Okay, let's do as General Manager Jiang says."
The two parties reached an agreement, and Jiang Tiansheng paid the first installment of HK$3760 million.
Back at the company, Jiang Tiansheng checked the accounts and found that Paramount Company had HK$3740 million remaining in its accounts.
He sat at his desk and began to think about how to handle the outstanding payments for the Wei Kee Building and the losses incurred by the tenement buildings.
Jiang Tiansheng called Su Qishan over and said, "Su Qishan, that Hewentian tenement building is at risk of being requisitioned for highway construction, so I've decided not to rush into renovations."
Go investigate the property sales situation near the tenement buildings and see if you can make up for the losses by increasing the value of the properties through mergers.
After listening, Su Qishan reminded him, "President Jiang, the building consolidation project involves a huge amount of capital, and the local market is currently sluggish, so the risk is very high."
Jiang Tiansheng nodded. "I know there are risks, but we have to find a way to solve the problem of the tenement building."
Go and investigate thoroughly before making any plans.
By the way, I'm considering reselling the tenement building to one of our subsidiaries, Zhao'an Real Estate Company. If you and other relevant personnel are willing, you can also be transferred there.
Su Qishan said, "President Jiang, I will follow your arrangements. However, the matter of increasing the value of the merged building still needs to be discussed in detail."
"Okay, you go ahead and do it. Report back immediately if anything comes up," Jiang Tiansheng said.
In the afternoon, Jiang Tiansheng signed acquisition contracts with the owners of three shopping malls and the Kato Building in Kowloon City.
Paramount Company invested a total of HK$3275 million, of which Li Jiafeng invested HK$145 million, holding a 30% stake in the two shopping malls.
After the acquisition, Paramount Company had only a few million yuan in working capital left in its accounts.
After finishing his work at the company, Jiang Tiansheng returned home. Lin Ya greeted him and said, "Yulang International Company sent someone today."
They said they wanted to discuss cooperation with us, hoping Shengyun Printing Company would continue printing comics for them, and also said they would withdraw the lawsuit.
Upon hearing this, Jiang Tiansheng snorted coldly, "Huang Yulang is truly desperate."
However, Sheng Yun Printing Company's limited strength made it impossible for it to compete with Yu Lang International Company.
I think we can continue cooperating, but we need to set some conditions.
Lin Ya asked, "What are the conditions?"
Jiang Tiansheng said, "I demanded that they settle all fees before printing each issue of the product and sign a five-year contract, otherwise they would have to compensate for a loss of HK$5 million."
At this moment, Luo Qixing said from the side, "President Jiang, aren't these conditions too harsh? Will Yulang International Company agree to them?"
Jiang Tiansheng said, "Luo Qixing, this is a necessary precaution. Shengyun Printing Company can't afford to suffer any more losses."
Since Wong Yuk-long took the initiative to come to us, it means he needs our help, and he should consider these conditions.
During dinner, Lin Ya suddenly mentioned, "Jiang Tiansheng, I think Bai Jinyan has a good impression of you."
Jiang Tiansheng hurriedly clarified: "Lin Ya, don't misunderstand, Bai Jinyan and I have a working relationship, nothing more."
"Didn't I tell you before that I have a girlfriend?"
Lin Ya didn't believe it. "Hmph, you're just being stubborn. I can tell the way she looks at you. No, she has to explain herself."
Jiang Tiansheng had no choice but to remain silent. The atmosphere at the dinner table suddenly became heavy, and everyone ate their food in silence, no longer speaking.
After the meal, Jiang Tiansheng returned to his study to continue thinking about company affairs.
The cooperation with Yulang International Company, the final payment for the Weiji Building, and the handling of the tenement building—every single matter is related to the company's development.
He had to make careful decisions and lead the company through one challenge after another.
As September arrived, the weather in Hong Kong became unbearably hot and humid. Hung Po Chemical Company's stock price plummeted to 10 cents, and the banks were preparing to bankrupt and liquidate the company.
Jiang Tiansheng knew he had to act quickly, or the opportunity would be lost in the blink of an eye.
He quickly contacted Liang Botao to discuss the acquisition.
"Liang Botao, given the current situation of Hongpu Chemical Company, we need to find a way to acquire it."
"I was thinking, could we persuade the bank to treat some of the pledged loans as bad debts? That would alleviate our acquisition burden," Jiang Tiansheng said bluntly.
After a moment's thought, Liang Botao replied, "President Jiang, this method is theoretically feasible. However, the bank will definitely have a hard time making a decision."
We need to contact the major banks first, such as HSBC, Standard Chartered Bank, and Bank of East Asia.
Jiang Tiansheng nodded. "That's right, that's what I was thinking too. I plan to acquire the bank's shares at 5 cents per share. What do you think?"
"The price is quite attractive, it just depends on whether the banks are willing to accept it," Liang Botao said.
After discussing the matter, the two immediately took action. Their first visit was to Reese, the vice president of HSBC.
In a conference room at HSBC, Jiang Tiansheng and Liang Botao presented Lei Si with an acquisition proposal.
"Mr. Reis, we hope to acquire your bank's shares in Hongpu Chemical Company at a price of 5 cents per share."
"At the same time, we hope your bank can treat some of the pledged loans as bad debts," Jiang Tiansheng said.
Reis frowned. "Mr. Jiang, this price is a bit low. And treating the loan as a bad debt will result in significant losses for our bank."
Jiang Tiansheng explained, "Mr. Lei Si, you are also aware of the current situation of Hongpu Chemical Company. Its stock price has plummeted, and the company is facing bankruptcy."
If we don't do this, the shares your bank holds may become worthless.
After the acquisition, we will find ways to revitalize the company, which will also help your bank minimize its losses.
After thinking for a moment, Reis said, "Mr. Jiang, I can consider the proposal."
However, our bank must retain a 10% stake, and that 10% stake must be traded at market price.
Upon hearing this, Jiang Tiansheng immediately refused: "Mr. Reis, we cannot accept the idea of trading at market price."
The risks associated with Hongpu Chemical Company are too great right now, and trading at market price would be unfair to us.
Moreover, we will need to invest a significant amount of capital to revitalize the company after the acquisition, and we will bear all the risks.
Reis insisted, "Mr. Jiang, this is our bank's bottom line."
If this is not acceptable, then it will be difficult to continue negotiating the acquisition plan.
Jiang Tiansheng and Liang Botao exchanged a glance, and Liang Botao continued, "Mr. Lei Si, please reconsider."
After the acquisition, we will strive to enhance the company's value, and the 10% stake retained by your bank will also appreciate in value.
However, if we trade at market price, our costs will be too high, and we might have to abandon the acquisition, which would put your bank's shares in real danger.
After a heated debate, Reis was finally persuaded and agreed to Jiang Tiansheng's proposal.
After leaving HSBC, Jiang Tiansheng and Liang Botao went straight to Standard Chartered Bank.
At Standard Chartered Bank, they met with Vice President Liu Jiehui.
"Mr. Liu, we are here to discuss the acquisition of your bank's shares in Hongpu Chemical Company."
"Our proposal is to acquire the shares at 5 cents each, and we hope that your bank will treat some of the pledged loans as bad debts," Jiang Tiansheng explained his purpose.
After hearing this, Liu Jiehui said firmly, "Mr. Jiang, this plan won't work. Although Hongpu Chemical Company is not in a good situation now, it still has potential."
"Your price is too low, and you want us to treat the loan as a bad debt? It's not that easy."
Jiang Tiansheng patiently explained: "Mr. Liu, Hongpu Chemical Company is in a very serious crisis right now. If the bank doesn't cooperate, they may end up losing everything."
We are confident that we can revitalize the company after the acquisition, which will be good for everyone.
Liu Jiehui, however, was unconvinced. "Mr. Jiang, I see that your Paramount Company is quite capable. Paying more for the acquisition wouldn't be difficult for you."
"If you're trying to take advantage of the bank, this acquisition is off the table."
Seeing Liu Jiehui's tough attitude, Jiang Tiansheng threatened, "Mr. Liu, don't force me."
If your bank insists on this attitude, I'll just let Hongpu Chemical Company go bankrupt.
"At that time, we'll dilute your bank's equity by issuing new shares and see who suffers more."
Liu Jiehui's expression changed as he realized the seriousness of the problem.
But before he could respond, Jiang Tiansheng had already gotten up and left.
After leaving Standard Chartered Bank, Jiang Tiansheng and Liang Botao went to Bank of East Asia.
They met Li Fushu at the East Asia Bank.
"Mr. Li, we are here to discuss the acquisition of your bank's shares in Hongpu Chemical Company."
The proposed acquisition price is 5 cents per share, and we hope that your bank will treat some of the pledged loans as bad debts.” Jiang Tiansheng explained the proposal again.
After listening, Li Fushu thought for a moment and then said, "Mr. Jiang, I agree to this plan."
This is indeed a good solution for both East Asia Bank and Chinese Estates Holdings.
Jiang Tiansheng was relieved to hear Li Fushu agree so readily.
In this way, Jiang Tiansheng gained control of Hongpu Chemical Company.
After leaving the Bank of East Asia, Jiang Tiansheng said to Liang Botao, "After the acquisition is completed, we will have to dilute our equity by issuing new shares."
At the same time, raising the stock price would allow them to recoup funds and invest in other projects of the Paramount Company.
Liang Botao nodded in agreement, "President Jiang, this plan is feasible. However, issuing new shares and raising the stock price require careful planning, and there can be no mistakes."
Jiang Tiansheng continued, "Furthermore, I have reached an agreement with some of the minority shareholders of Hongpu Chemical Company. They are willing to sell us their 12% stake at market price."
Liang Botao said, "This is good news. With these minority shareholders' shares, we will have more say in the company."
Five days later, Jiang Tiansheng, representing Paramount Company, signed an agreement with HSBC and East Asia Bank to formally acquire shares of Hongpu Chemical Company.
Subsequently, Wanguobaotong Finance Company, on behalf of Bailumen Company, announced an acquisition of Hongpu Chemical Company.
The news caused quite a stir in the industry.
In recent days, Hongpu Chemical Company has been on the verge of bankruptcy.
.........
The company doesn't even have enough money in its account to pay its employees half a month's salary.
Suppliers are blocking the door every day demanding payment, production has basically come to a standstill, and finished products are piled up like small mountains in the warehouse.