Chapter 1697: Division of Business

"Palangi, according to our previous agreement, the Land Rover belongs to your Tata Motors, and a factory in North America is also yours. You choose this one first, invest according to the contract amount, and bear the corresponding debt at the same time." Feng Yu is very generous. Said.

Palangi is actually a little unhappy, he still wants Woerwo, but the acquisition is all managed by Fengyu Holding Group, and the money is paid by Huaxia xx Investment Company, giving them a Land Rover is already Very good, not to mention the factories in North America, let them choose first.

Fortunately, he also knows that it is not that we will stop talking with Yongyong, but suspend it first, and then negotiate when Yongyong's side becomes even more desperate. In the end, Tata Motors will still be able to get one or two good car brands .

"Then we want this." Palangi grabbed a document. It is the largest of the three factories, but it is not the best location, but what Tata Motors wants now is to expand its scale.

"Okay, then Jiebao will belong to us, and it will be sold to Bingcheng Machinery Manufacturing Group in the future. Mr. Xu, if you want the shares of the same use in Shanghai, then do you want the shares of Changanfute? And Woerwo, Are you sure you want it all?"

"We want all the equity in the joint venture company, and Volvo is sure to want all of it, but we can give you a factory. North America agreed that we also have a factory, right, we want this one."

Mr. Xu also unceremoniously stated his own conditions, or the conditions studied by his superiors, of course he had discussed with Feng Yu in advance.

"Okay, then we will invest in the establishment of an asset management company according to the agreement, and then restructure these assets, strip off non-performing assets, and we will bear the burden in proportion."

What Ralph means is that the liabilities on the non-performing assets side are directly bought out. That is to say, the debt is paid off in one go, and the remaining workers are directly given compensation to buy out the contract, and then some companies can be directly canceled.

Tata Motors believes that it is not cost-effective to buy out directly. Although they will have to pay some interest on these debts every year in the future, it can relieve the current financial pressure and prevent them from investing so much money all at once.

It doesn’t matter about state-owned assets. They have money now, and they can afford to buy out, but it’s good to spend less money and then use the saved money to invest to make money.

But they also understand that the current economic situation is good on the surface, but the impact of the subprime mortgage crisis has already appeared. Aren’t many small real estate finance companies going bankrupt? Then the economic situation is likely to take a turn for the worse. They don’t have the confidence to continue at this time. It can guarantee that the investment will make money.

Generally, such a large amount of capital investment will choose some long-term safe investments, such as blue chip stocks, such as high-quality long-term bonds, such as high-quality funds, and so on.

As for investing in the futures market, this kind of risky investment is generally not made by state-owned assets. The only thing they have done is to invest in gold, and they dare not use more than twice the leverage at all, for fear that if they are not careful, they will lose a lot of money, and no one can afford this responsibility.

Although gold has been rising in recent years, it is not without time to fall. The level of state-owned assets here is average. Generally speaking, they still earn more and lose less, but it is not without loss.

They now have another idea, which is to buy the fund bonds issued by Taihua Consulting just like Yidong Company. The income is good and safe.

However, some people objected, thinking that the bonds of Taihua Consulting have a return range, which is to ensure that you have a minimum return, but the maximum is only so much. Even if this project earns more, it will not be distributed to you.

This gives people a feeling that they may lose money, which makes many people very unhappy. They have concerns about directly entrusting it to Taihua Consulting. One is that they feel uneasy, and the other is that the commission rate charged by Taihua Consulting is too high. Taihua Consulting is actually registered in Xiangjiang and adopts a commission negotiation system.

In other words, they are not bound by the commission limit in the Mainland, and can be set very high or very low. Domestically, they are all within a range, and cannot exceed this range, nor can they fall below this range.

Feng Yu has long known that there will be these restrictions in the Mainland, so he has already made preparations. Anyway, Xiangjiang belongs to China, so who can say what is wrong?

Several ways of dealing with non-performing assets have advantages and disadvantages, depending on which one suits one's own development, one should choose.

Feng Yu told Ralph that in fact, they really couldn’t buy out these non-performing assets at once. Taihua Holdings had no money, and all the funds were transferred to the financial market by Feng Yu. Although a lot of money was in the account , but cannot move.

So they decided to take another approach, which is to securitize non-performing assets. What do you mean, these non-performing assets are packaged, issued securities and sold. Then use this money to buy out the non-performing assets.

Or there is another way. Big banks such as Morgan Stanley are also experts in dealing with these non-performing assets, and they can package and sell these non-performing assets directly to them.

The securitization of non-performing assets is still in a state of exploration in China, and it is only tried in some pilot projects. It is very troublesome to operate domestically. Fortunately, they will complete it abroad.

Palangi's team quickly calculated the funds they should pay, and he reported to the group company to discuss the payment.

At this time, Mr. Xu whispered mysteriously: "Mr. Feng, our state-owned assets are going to buy these non-performing assets."

Feng Yu looked at Mr. Xu in surprise. The securitization of non-performing assets in China is still in its infancy. How are they going to deal with it?

If the non-performing assets are handled well, it is indeed possible to make money, but if they are not handled well, not only will it cost money, but it may also form a huge burden.

Mr. Xu saw Feng Yu's puzzled expression, and explained: "Mr. Feng, when you continued to inject capital into Bingcheng Machinery Manufacturing Group, you had an agreement with your superiors. If necessary, you can accept the equity of Bingcheng Zhengaxe. Increase by a certain percentage, right?"

Feng Yu raised his eyebrows: "Are you planning to swap debt for equity?"

Debt-to-equity swap is to convert debts into shares. This approach has been tried as early as the end of the 1980s, and it became very popular in the restructuring of state-owned enterprises around 1998.

At the beginning, Feng Yu diluted the equity of Bingcheng Zhengaxe a lot, including that of Fu Guangzheng. Later, according to the contract, Fu Guangzheng made additional investment, bringing the shareholding ratio back to 16%.

Although Bingcheng Zhengfu also made some additional investments to bring back the shareholding ratio, it was far from as much as before. It's not as high as Fu Guangzheng's shareholding ratio now.

The Bingcheng Government Ax can't get the money out, but the superiors can. After a simple operation, the equity ratio will be restored in the name of the Bingcheng Government Axe, and then the debt will be repaid to a certain state-owned asset.

"President Feng, Zhang Buchang said that you agreed to this at the beginning." Xu weakly said.

Tch, this little money, do I need to go back on my word? No matter what, Taihua Holding Group is still the controlling party.

"No problem, you can talk to Zong Qing in detail later."

... (To be continued.)