Replay 07: Opening the Temple of Learning

Chapter 66 I work hard but I still owe a lot of debt (Please read more)
Since Lisheng is a small factory, it certainly does not have much cash on hand.

For its own interests, the raw material company will certainly ask Lisheng to pay part of the payment in advance.

What should Lisheng do if he has no money?
The choice is definitely a loan!

When a small factory goes to the bank for a loan, the bank refuses to lend it.

There is no other way, we can only find a guarantee company (loan shark).

The accounting firm acted as a middleman and made Lisheng sign a false loan agreement with a local secured loan company in Jiangzhou, loaning a total of 100 million yuan with an annualized interest rate of up to 30%.

Okay, all the holes have been dug.

As a result, Jiangzhou Machinery Factory stopped purchasing springs from Lisheng.

Lisheng immediately fell into a liquidity crisis.

First, even if you pay the full balance for the raw materials and take the raw materials back to produce springs, you will not be able to sell the springs because Jiangzhou Machinery Factory will not accept your goods.

Secondly, if you want to breach the contract, I'm sorry, but when you signed the contract with the raw material company, in order to lock in the raw materials, you were afraid that the supplier would sell the raw materials to other factories, so the cost of the breach of contract clause was very high.

Thirdly, in order to obtain a huge loan from a small secured loan company, Lisheng also signed a very harsh loan agreement. In addition to the high interest rate, it also stipulated that repayments must be made every month. So you have to pay back the money!

Well, now Lisheng has neither orders nor money, and is heavily in debt.

Lu Dehai, do you want to withdraw your shares or repay your debts?
After reading the relevant plans of the accounting firm and listening to Lu Xiang's detailed introduction.

Lu Peng was very excited and glanced at Lu Xiang.

I praised silently, this kid is really a talent!
If you want the company to make money, it will make money. If you want the company to lose money, it will lose money!
Who in today’s society can’t resist money?

Besides, since signing the cooperation agreement with Lu Dehai.

Lu Peng couldn't eat or sleep every day.

I always feel like my money has been taken away by others.

Now that Lu Xiang had provoked him like this, he also felt that this was a good way to get rid of Lu Dehai.

But Lu Peng still had a problem.

“How will our factory make a profit in the future?”

Lu Xiang said: "Our equipment is still here!"

"Jiangzhou Machinery Factory has agreed to give us orders for motorcycle shock absorber springs in the future. We will make as much money as before!"

The two brothers discussed it and decided to do it!
Lu Xiang immediately took the official seal and, accompanied by relevant staff from the accounting firm, went through the relevant false procedures.

Whether it is purchasing raw materials or seeking loans from financial institutions.

These are all daily tasks performed in the factory to produce springs.

Lu Peng found an opportunity to casually tell Lu Dehai about the purchase of raw materials and the loan.

This also means that the relevant procedures of the Company Law have been followed, and shareholders are informed of important matters.

Lu Dehai said with a smile: "I don't know much about business matters, I will do whatever is beneficial to the factory. I also heard that the price of steel plates has increased a lot in the past year. We can save costs by buying some and putting them there!"

Lu Peng thought to himself: "Good fellow, that's exactly what I want you to say!"

Lu Dehai thought to himself, "Great! We just have to wait for Jiangzhou Machinery Factory to master the technology and produce low-cost springs as soon as possible."

Soon all the formalities were completed, and from a procedural point of view, it was seamless.

In the past few days, the workers in the factory have also felt a chill.

The equipment was discontinued one after another!

Lu Dehai followed Lu Shan's request, kept his composure, and went to get off work and came home on time every day without any unusual behavior.

A week later, the entire factory stopped production.

Technical workers who are willing to stay will only be paid basic wages, and those who do not want to stay can leave at any time.

The factory, which originally had more than 30 people, was in a state of panic for a while, with only four or five workers left.

Lu Peng convened a meeting of the top management of Lisheng Factory and made his point. The small office was filled with smoke.

Lu Peng took a deep puff of the cigarette and then shook the ash into the ashtray.

"It's difficult to run a factory. As everyone knows, our orders have continued to decrease during this period, and I'm under a lot of pressure."

"Deputy Director Lu, Deputy Director Lu, Director Li Jun, you all know that the main reason why Lisheng had orders and was able to make some money some time ago was because Jiangzhou Machinery Factory gave us orders."

"But now, the other party won't give it to me. I asked why. Jiangzhou Machinery Factory has better technology and can mass-produce front suspension springs at a lower cost."

“If they buy from us, their costs will be higher.”

Lu Peng lit another cigarette and said, "As the person in charge of the factory, I'd better inform everyone of the situation."

"Some time ago, our order volume was relatively sufficient, and the price of raw materials had been rising, so we took out loans to stock up on some materials."

"Director Lu is aware of this matter." Lu Peng wanted to trap Lu Dehai.

"The problem with our factory now is that all the loans have been used to buy materials. Orders have been cut off, and some raw materials are stored in the warehouse. The springs produced cannot be sold, and the balance of the raw materials cannot be paid off. Many of the raw materials ordered are not delivered by the other party. The capital chain is broken and the loan cannot be repaid. The raw materials in stock have also been withheld by the loan company."

"Now we owe a total of 100 million yuan in principal, 5 yuan in interest, and 5 yuan in loan processing fees, a total of 110 million yuan."

Lu Peng put out his cigarette, looked at Lu Dehai and said, "Director Lu, you are also the deputy director and a shareholder. What do you think?"

Lu Peng’s main theme is that there is no money and there is nothing you can do. You can do whatever you want.

Lu Dehai looked at Lu Peng. Although he had Lu Shan's warning and countermeasures, he was mentally prepared.

But looking at Lu Peng's expression of "I am right but I am bad", I still feel a little angry.

Lu Dehai couldn't understand. If everyone worked hard on machinery and products, they could make the company bigger and stronger step by step.

Why do the people above like to do some quick-success, messy things?

This was the case with the Jiangcheng County State-owned Tractor Factory in the past, and it is also the case with Lisheng now!
Li Jun glanced at Lu Xiang, and the two of them were ready to play the good guy and the bad guy respectively.

Li Jun said: "Director Lu is also a shareholder of the factory. Now the factory is in trouble and the workers need to eat. We still have to find a way! We can't just distribute dividends without taking responsibility!"

Lu Xiang quickly said, "Master Lu used his technology to invest in the company, but he didn't invest anything. Now the factory owes a lot of money. If he takes responsibility according to his shareholding ratio, he will have to pay 44 yuan! I don't think Master Lu should be held responsible!"

Everyone looked at Lu Dehai, hoping to see Lu Dehai's frightened expression after hearing that he was in debt of hundreds of thousands.

But unfortunately, no.

Lu Dehai smiled and said, "Boss Lu, what you mean is that I work so hard every day to help the factory through its difficult times, but I didn't make a dime and ended up in debt?"

Lu Peng quickly said, "Master Lu, that's not what we meant!"

"The domestic economy is now a market economy. Small factories like ours without advanced technology and equipment will be eliminated sooner or later. Master Lu has helped us a lot. How can we hold Master Lu responsible for these things?"

Lu Peng took out an envelope from his briefcase and said, "I plan to take responsibility for the factory myself. I will file for bankruptcy and then find a way to repay the debt. Master Lu, you have worked hard these past few months. This is 3,000 yuan for the holidays. Keep it!"

Lu Peng started to act like a good guy: "If you give up your shares, I won't bear to let you take the responsibility even if the sky falls. I will take full responsibility."

Lu Dehai smiled and said, "What if I don't want to?"

Lu Peng was confused. "Master Lu, I'm not kidding you. This is a debt of more than 40 yuan!"

When Lu Shan was drawing up the contract, he had already fallen into this trap. How could he let his father bear such a big trap?

Therefore, in the general agreement with densely printed small print, it is clearly stipulated that technology investment does not assume the factory's debts.

Lu Dehai said: "Take a look at our contract first."

At Jinbei University of Technology, Luo Jianfeng's body was shaking with excitement. The results from the laboratory were very promising, so he hurriedly took his thesis to the school-enterprise cooperation unit, the 213 Institute in Jincheng under the Ordnance Industry Group.

Thanks to “Book Friend 1816” for the reward of 500 Qidian Coins!

Thanks to "Book Friend 1388" for two monthly tickets, "Book Friend 9818", "Gai Pian" and "Hu Li Hu Tu Ren" for one monthly ticket

Thank you all for your recommendations!

It’s still the same old rule, begging you to read on! Read on, read on, read on, reading on determines life and death!
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(End of this chapter)