Extraordinary Genius

“Parange, according to our previous agreement, the Land Rover belongs to your Tata, and a factory in North America belongs to you, which you choose to fund by the amount of the contract, while bearing the corresponding debt.” Feng Yu said very generously.

Parange is actually a little unhappy, he still wants to be warm, but the takeover, all under the auspices of Windstorm Holdings Group, and the money is paid by Huaxia XX Investment Co., it's already very nice to give them a Land Rover, let alone North American factory, and let them choose first.

Fortunately, he also knew that the same side of the car was not no longer talked about, but paused first, equal to when the other side became more depressed, then negotiated, and the Tower car could still get a nice car brand or two back.

“Then let's take this.” Parange grabbed a document, the largest of the three factories, but not the best location, but what Tata now wants is to scale up.

“Yes, then the leopard belongs to us and will be sold back to Iceland Machine Manufacturing Group. President Xu, the demons share the same equity, you want this, so do you want Changan Fut's equity too? And Wolverine, are you sure you want it all? ”

“We want all the equity in the joint venture, and Wowo is sure to take it all, but we can give you a factory. North America says we have a factory, right? We want this one. ”

President Xu also bluntly stated his terms, or the conditions studied above, and of course discussed them with Feng Yu in advance.

“Well, then, as agreed, we will invest in the establishment of an asset management company, then restructure these assets, strip the non-performing assets, and we will bear them proportionately. ”

Ralph means liabilities on the side of bad assets, buy them out directly. This means paying off the debt in a lump sum, buying out the contract directly from the remaining workers, etc., and then some companies can write it off directly.

Tata Automotive, for its part, believes that direct buyouts are inexpensive, and while some interest will be paid on these debts each year in the future, they can ease current financial pressures so that they do not have to invest as much money at once.

On the state-owned side, it doesn't matter. They have money now, they can afford it, but it's good to lose some money and then invest it to make money.

But they also understand that the economic situation is looking good, but that the impact of the subprime mortgage crisis has emerged, and that many small real estate finance companies have gone bankrupt, so the economic situation is likely to change sharply, and they are not confident at this time that investment can be guaranteed to make money.

Typically, this large capital investment chooses a number of long lines of sound investments, such as blue-chip equities, such as high-quality long-term bonds, such as high-quality funds, etc.

As far as investing in futures markets is concerned, such investments are too risky, and general State capital does not do so. The only thing they've ever done is invest in gold, and they don't dare to leverage more than twice as much, afraid of an inadvertent loss, and nobody can carry that responsibility.

Gold has been rising over the years, but not without falling. The general level of state-owned capital still earns a lot more and loses less, but it is not without losses.

They now have the other idea, like Moving East, of buying Taihua Consulting bonds, which yield good returns and are still stable.

But there are some who disagree that Taihua Consulting's bonds have a margin of return that assures you that you have the lowest yield, but the highest yield is just that. Even if this project makes more money, it won't be distributed to you anymore.

This gives a sense of likely loss and makes many people very uncomfortable. To say that they are directly hosted to Taihua Consulting, they also have concerns. One is not very comfortable, and the other is that Taihua Consulting receives too high a commission percentage. Taihua Consulting is actually registered in Xiangjiang, and the commission negotiation system is adopted.

That is, they are not bound by the commission limits in the interior, which can be very high or very low. Domestic can be within a single zone, and cannot exceed or fall below that zone.

Feng Yu knew that there would be these restrictions in the interior, so he was already prepared. Anyway, Xiangjiang belongs to Huaxia. Who else can say anything?

There are advantages and disadvantages to several ways of dealing with non-performing assets, depending on how they are suitable for their own development.

Feng Yu told Ralph that, in fact, they could not buy out these bad assets at once. There was no money on Taihua Holdings' side. The funds were drawn into the financial market by Feng Yu. Much of the money was on the books, but they could not move.

So they decided to take another approach, which was to securitize non-performing assets. What it means is that these bad assets are packed and securities are sold. And with that money, you can buy out the bad assets.

Or there's another way, big banks like Morgan Stanley, who are also good at dealing with these bad assets and can directly pack and sell them.

Securitization of non-performing assets, this is still in the exploratory state in Huaxia, it's just a few pilot trials, domestic operations, very troublesome, luckily they will finish processing abroad.

Parange's team quickly accounted for the money they were supposed to pay, and he went to the group to talk to them about the money.

President Xu mysteriously whispered at this time: “Mr. Feng, these bad assets, our state-owned assets are ready to buy. ”

Feng Yu looked at President Xu with surprise. The domestic securitization of bad assets is still in the budding stage, what are they going to do about it?

Poor assets have been disposed of and may indeed make money, but if not handled well, not only will they have to be matched, but they may also create a huge burden.

President Xu saw Feng Yu's puzzled expression and explained: “President Feng, when you continued to invest in Iceland Machinery Manufacturing Group, there was an agreement to follow suit. If necessary, you can accept that Iceland Axe's equity increase by a certain percentage, right? ”

Feng Yu picked his eyebrows: “Are you going to convert debt into shares? ”

Debt to equity, which is the conversion of debt into shares, was tried as early as the end of the 1980s, and was particularly prevalent in the restructuring of State enterprises around 1998.

At the time, Feng Yu diluted the shares of Ice City Axe a lot, including Fu Guangzheng's shares. Later, as agreed in the contract, Payout was making an additional investment, bringing the equity ratio back to sixteen percent.

And the Ice City Axe, while adding some investment and pulling back some equity proportions, is far less than it was originally. Now it's not as good as paying off Guangzheng's shareholding ratio.

Ice City Axe can't get the money out, but the boss can, after a simple operation, restore the equity ratio in the name of Ice City Axe, and then pay off the debt to a national capital.

“President Feng, Zhang Buchang said you promised this.” Weak Xu said.

Do I have to repent? Anyway, Taihua Holding Group remains the controlling party.

“No problem. Talk to Zongqing first. ”

……