Soviet Godfather

Prime Minister Thatcher has cleared all obstacles to his reforms, and the union, which is the most troublesome for politicians, cannot allow this woman to give in. However, because the British economy is still in the doldrums, there are not many foreign capitals willing to invest in the UK. Therefore, the competition that Sergei faces mainly comes from these financiers in the UK. Sergey Shah has prepared the banknotes and can start his purchase in the UK at any time. And the first one Sergey Shah valued was the British National Gas Company.

Judging from the current financial situation of this company, there is basically no investment value. Not only is debt high, but also because the British government restricts natural gas prices, the company’s profits can be estimated only from the books. Up.

However, as the actual head of the Soviet Ministry of Foreign Trade and Economic Cooperation, Sergei Shah holds the British natural gas supply contract in his hand, and he is confident that the company will be profitable on the basis of the current price. But the people who ordered this company are not only Sergey Sha, but also the British company PLC Group, and some large banking institutions behind it. And if Sergei wants to win this company at a fair price. The most important thing is to acquire the company's upcoming debts from the creditors of British Gas.

There is a huge difference between the debt of an acquired company and the direct acquisition of a company. If Sergey Sha directly buys the British Gas Company, then the company's existing debts will also be borne by Sergey Sha. In fact, the gain is not worth the loss, because if the British Gas Company does not repay the debts it owes, then he cannot obtain loans from British financial institutions, so Sergei can only use his own money to maintain the company. Continue to operate. This is a situation that Sergey Sha does not want to see. Sergey Sha hopes that he can obtain a healthy British gas company without huge debts.

The acquisition of debt also carries certain risks, because bonds are not equivalent to equity, and because the company belongs to shareholders, not creditors, there is only a debt relationship between shareholders and creditors. Moreover, a company can apply for bankruptcy protection. Once a company applies for bankruptcy protection, although all the company’s profits during this period will be used to repay creditors’ losses, the corresponding creditors cannot interfere with the normal operation of the company. It is not possible to take part or all of the company’s assets as one's own by running its own debt proceeds.

After weighing the interests, Sergei finally took the path of buying bonds. Because the cost of doing so is lower. As the British Gas Company has been losing money year after year, the bank debts owed and the debts of the British government have reached an astronomical figure, and the total amount is close to twice the company's assets. Sergei’s main opponent, PLC Group, is willing to assume the debt, but they also put forward new conditions to the creditors, that is, the time for repayment of the debts owed by the company must be extended, and the interest must be reduced to less than one percent. . As a local company in the UK, PLC is naturally the best destination to take over the British Gas Company, but these harsh conditions make it unacceptable for the British government, which has been running high deficits and debts for years, and financial institutions that have been dragged down by the UK's sluggish economy. The British government needs to get rid of this bottomless pit of funds in its own hands, and the bank also hopes to use the fastest speed to slash this hot potato.

At this time, a new consortium headquartered in Switzerland, the Bank of Columbia also participated, demonstrating its interest in working with British Gas. The plan given by the Bank of Columbia is to acquire the debts that have no hope of being repaid in the hands of the British government and British banking institutions, and then proceed with debt-to-equity swaps. So as to achieve the purpose of acquiring the British Gas Company. As soon as this plan came out, it immediately aroused the interest of many financial institutions. Because Bank of Columbia is not a small local British company like PLC that wants to behave like a snake. The company's business covers major developed countries in the Americas, Europe and Asia. He can get real money to buy British Gas.

However, it is naturally impossible for Colombia to acquire debt in full. If British Gas has excellent repayment ability, then the bond price of the company may be higher than the sum of its face value and interest. Unfortunately, this company’s short-term debt credit is C. Long-term debt credit is. The credit rating given by this rating is that this company has a very poor reputation, unreliable solvency, and may default. It is thankful that this level of debt can be sold on the open market at a discount.

Sergey Sha’s price for these debts was 20% of the face value. The price is twice as high as the market price, but correspondingly, Sergey Shah wants to purchase all the debts of the company and also asks BG’s parent company, British Gas Group, the major shareholders of the British Ministry of Finance and other companies to agree to the Columbia Bank’s debt-to-equity swap Plan.

As soon as the Bank of Colombia's plan came out, the PLC company, which originally thought the overall situation had been determined, could not sit still. They began to lobby the British government and banking institutions not to agree to Columbia’s plan and leave the British Gas Company to the British. However, the PLC Group is really naive. Although their plan will pay all debts ~ www.wuxiaspot.com~, the repayment cycle is as high as several decades. The annual interest rate of 1% is uncertain even due to the inflation rate in the UK. And the most important thing is that the acquisition of PLC Group requires the British government and financial institutions to provide them with cheap financing and tax support. The Bank of Colombia is willing to pay all the money in one lump sum. It does not require the British government and British banks to pay an extra penny to support the acquisition plan of the Colombian Bank. Although the Bank of Colombia has picked up a big deal, it is two phases. In comparison, voting with your feet knows which way to choose.

British financial institutions first stood on the side of the Columbia Bank. They collectively expressed their refusal to provide loans to PLC to acquire British Gas. The British government was unwilling to pay for PLC for the sake of local feelings. Therefore, the Columbia Bank’s plan finally won by. BG agreed to spin off BG from the group and sell it to the Bank of Colombia. British Gas Group will retain its own natural gas exploration, production, transportation, distribution and supply businesses, and only sell its domestic natural gas sales, heating, boilers and natural gas power generation businesses to the Bank of Columbia. The British Gas Company, which owns these businesses, has total assets of up to 20 billion U.S. dollars, but the Bank of Columbia only paid about 5 billion U.S. dollars to take down the company, winning a good start for Sergei Sha’s British plan.

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