Vol 6 Chapter 614: Cool
Su Shiming nodded with a calm face.
He didn't speak, because he thought to himself, if he spoke, he would probably not help but curse.
These... **** who pit themselves!
Not to mention the losses in securities related to mortgages. Like Lehman, because of the high investment in commercial real estate, the company he founded is now also facing huge losses.
All the unprocessed commercial real estates in the hands of last year looked like hens that would lay golden eggs. Not only did they bring a fixed income every year, this income would increase every year.
But now, that is a bunch of rotten eggs, everyone is afraid to avoid it. They must pay corresponding taxes and maintenance fees for this.
But at the moment, it seems that the bigger deficit comes from what I thought was the best thing at the time, that is, the acquisition of Hilton Hotel Group.
His original idea is also very good, not to mention the brand value of Hilton hotels, it is said that the hundreds of Hilton hotels around the world can not only become a stable source of cash flow, the assets of those hotels mainly refer to the real estate they own. , Because it is generally located in the prime location where it is, it will also appreciate year by year.
Those rooms, on the one hand, bring cash every day, on the other hand, they will also appreciate in value...
Feng Yiping said that his Tesla is a project with both fame and fortune. Su Shiming also believes that the Hilton Hotel he acquired is a good project that can bring double benefits.
Not to mention the Hilton Hotel, in fact, it cost him billions of dollars.
But who knows, the financial crisis came so fast and the impact is so widespread and deep?
Due to the impact of the subprime mortgage crisis, many companies in many countries have been forced to reduce their business travel expenses. Compared to before the acquisition, today, more than a year later, Hilton’s cash flow has been reduced by more than 50%.
On the other hand, with the exception of a few countries-mainly China, the assets of Hilton Hotels have been depreciated sharply this year.
But the greater burden comes from the employees employed by Hilton Hotels.
From the time when the momentum was not right, they have used various reasons to dismiss a lot, but until now, Hilton has more than 50,000 employees worldwide.
More than 50,000 people, Su Shiming has a headache when he thinks about it, with his income declining.
While revenues have fallen sharply, they must now continue to increase investment, because before the acquisition, Hilton had plans for many new hotels in many countries.
Most of those plans have already signed agreements with a number of contractors, so it’s really not like employees can fire a batch of them for a reason.
Considering the special features of the hotel industry and considering the influence of those contractors in the local area, they did not even think about suspension or suspension.
Originally invested in this area, bank financing can solve part of it, but the problem now is that in many countries, not only can they not get new financing from the bank, the bank is still asking them to repay the loan they previously borrowed.
But all of the above are not the biggest problem. When Hilton acquired Hilton last year, the high bars used more than 30 times, that is the big problem.
Considering the various difficulties faced by Hilton, they originally had a plan to discuss debt restructuring with the bank group that provided financing at the time. In essence, they hope that borrowers can reduce and forgive part of their debts while delaying their debt repayment.
While reducing and forgiving part of the debt, it is not only the debt, but also the corresponding interest.
Over the past year or so, the Hilton Hotel has discounted at least 40%. If everyone does not reduce or forgive part of the debt, then the operation of the Hilton Hotel will be unsustainable. In short, Hilton may go bankrupt.
This is actually the idea of taking advantage of the fire. If you don’t consider debt relief, then it is very likely that all your debts will be in vain.
He originally firmly believed that this plan was likely to be achieved by the west wind of the subprime mortgage crisis, but after hearing that Goldman Sachs and Feng Yiping were eyeing Hilton, he was instinctively vigilant and had to immediately suspend the plan. .
Just unexpectedly, he stopped, but he didn't stop there.
On Monday, he received a letter from Goldman Sachs. The content is not short, but in summary there are only two points. First, considering the current situation and the practical difficulties faced by each company, Goldman Sachs has been authorized to represent all creditors. Request, the Blackstone Group immediately repay the debt owed.
And if Blackstone cannot repay the corresponding debt, then they accept Blackstone to repay the debt with the Hilton Hotel. For this, they have prepared an asset evaluation team.
Seeing the letter from Heishi, Su Shiming had only one thought at the time: This is taking advantage of the fire!
We bought the Hilton Hotel at the peak of real estate prices, but you are thinking about buying back when the real estate is in a trough. Do you have a better plan than this?
But the problem is that, at this time, they spend more than 20 billion U.S. dollars to pay off the debt, and they can't do it.
Blackstone’s stock price has fallen by more than 50% compared to when it went public last year. It’s pretty good if it doesn’t fall. How can it be possible to raise more than 20 billion US dollars?
So from Monday to now, they have not given a clear answer.
At this time, time is very important. For some reasons, it can be said that time is money.
Thinking of this, he picked up the phone and called the chief financial officer, "How's the situation?"
The situation is quite bad.
Even though Paulson has already called out a huge rescue plan of up to 700 billion US dollars, many of their customers still did not hesitate to withdraw their investments and turn to safer national debt.
The same is true today. Even if they repeatedly ensure the safety of their investment, many customers still propose to withdraw their capital, and for this reason they even give up some of the benefits that will be available soon.
When Su Shiming called again, his attitude was obviously respectful, "Tom, what new progress is there now about Paulson's plan?"
Congressman Tom replied, “The White House and the party caucus representatives are still discussing the rescue plan.”
Still just negotiating?
"Tom, when do you expect the proposal will be voted on soonest?" Su Shiming asked again.
"You should have also heard that the presidential candidates of the two parties will also have consultations on this issue. Therefore, it should take some time for this plan to obtain a preliminary consensus from everyone. Comprehensive estimates are the possibility of a vote before the end of this month. Smaller,"
Su Shiming frowned, can't vote before the end of the month?
"Then John, what do you think is the probability of a vote?"
He pondered for a while, and finally said in a low voice, "From the current situation, there is a lot of resistance to the vote."
Su Shiming followed and made a few more phone calls with old relationships. The callees were both Republicans and Democrats, but the conclusions were similar to Tom’s. Paulson’s plan, even if it can get a vote on Capitol Hill, at least in the House of Representatives. There are still many people who oppose his plan.
This synthesis shows that in the short term, he and his Blackstone should not be rescued.
Actually, they already knew the outline of Paulson’s rescue plan. Even if they could get the rescue, they would obviously not be able to pay the $20 billion loan owed for the acquisition of Hilton.
And last year, they not only bought Hilton, like Lehman, they also bought other real estate projects, they owed ~www.wuxiaspot.com~ far more than 20 billion US dollars.
Goldman Sachs, no, Feng Yiping, you can really choose the time.
"Sir, it's time for the meeting," the secretary knocked on the door and suggested.
On the way to the meeting room, two words suddenly floated into Su Shiming's ears, "...It's really miserable!" "Haha, but, really relieved!"
He looked up and saw that many employees looked very happy, but combined with the two sentences he heard, Su Shiming was a little puzzled. What is going on?
The people in the conference room are also talking about something, but their faces are a little ugly.
Before he could ask, someone took the initiative to tell him, "Have you heard that Fuld was beaten up, just in the Lehman building, oh, in the Barclays building, in front of many people, a few Lehman's employees attacked him without warning, and those onlookers, not only did not stop them, many of them also took the opportunity to attack..."
Su Shiming's heart froze, but Fuld, who was aggressive and aggressive, fell to this end?
He quickly put the unpleasant news behind him, "Well, how is the market today?"
"According to the exact news, Washington Mutual Bank seems to be unable to survive,"
When Su Shiming heard this, his heart suddenly became cold again...
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