legendary trader

Chapter 862 Chapter 863
Although Enron's stock was delisted from the stock exchange, everyone in the market knew it clearly, but when it actually happened, it inevitably caused a lot of panic, and the impact was too great.

The disclosure of Enron's bankruptcy fraud caused great shock in the U.S. government and the public. The case involved a large number of government officials and members of Congress. It will also cause the retirement funds of teachers, firefighters and some government employees to lose more than 10 billion yuan. What is even more frightening is that the Enron incident has fundamentally shaken the confidence of American investors.

But at this time, Chen Fan had already received the latest news from Zhang Quan. They had discovered that many financial institutions, including Merrill Lynch and UBS, were bidding for Enron's electricity and natural gas trading department.

Yes, although many people in the current market are salivating over the assets left by Enron, the first ones who really started to share the cake are the financial institutions represented by Wall Street. Their desire to acquire Enron's trading department has completely exposed.

Seeing the news, Chen Fan only had a sneer on his lips. This only confirmed some of their previous speculations. Although they may not have done anything to Enron, they must have contributed to the incident until now.

However, Enron’s other assets are still in operation, and no other preparations have been made for the continued spin-off and sale. It seems that Enron’s current asset managers and senior management have shifted their attention to the sale of the trading department. Maybe I want to fire the first shot.

Two weeks after Enron's stock was delisted, Chen Fan suddenly received a call from Zhang Quan, saying that Globe Telecom would file for bankruptcy protection in the District Court this afternoon, which was the morning of local time in the United States.

"Yes, Mr. Chen, the news has been confirmed and will definitely happen, and Heung Kong Industrial will also announce to the outside world at the same time that they plan to save Globe Telecom. Although there was a secret meeting, the content of which is unknown, the board of directors subsequently approved the company's bankruptcy filing."

Zhang Quan told what he knew on the phone. The news came very suddenly. Although the news had been widely rumored in the market before, it didn't really happen after all, but it was obvious that it was about to happen now, and it was a certainty.

Also because of the influence of this rumor, Global Telecom's stock price has continued to plummet during this period of time. It has fallen from a price of more than ten yuan before to less than 2 yuan now.

During this period of time, Chen Fan has been paying attention to Enron's follow-up actions. Although the negotiation of the trading department seems to have not been completed, the current management of Enron has decided to split Enron's profitable power sector into three companies.

In this way, Enron's most valuable assets are roughly divided into five parts. In addition to the trading department that has been competed by many financial institutions, there is also the natural gas pipeline department, which has received acquisition requests from at least two peers, so everyone Probability will also be sold off.

What remains are the three electric power companies that will be formed in the future. They may be sold or they may continue to be retained.

The remaining assets can only be auctioned off at a discounted price. After all, in the eyes of most people, these are junk assets.

Of course, even if all of this has been negotiated, it needs to be approved by the creditors' meeting. After all, the cash recovered must be repaid, and so far, the debts exposed by Enron are already very scary. As many as 2 similar affiliated companies have been discovered, most of which exist in the form of trust funds.

But so far, the three power companies have made many contacts, but no one has formally proposed acquisition negotiations.

Chen Fan has also contacted Enron through people from Oak Tree Capital. In fact, he was asked about this matter by Wang Erge and others at an event in the small circle a few days ago.

But obviously, neither Brother Wang nor Zhang Jianjun, or anyone else, has any interest in acquiring the power assets left by Enron. Their roots are still mainly in China, and they have no idea of ​​large-scale overseas investment.

Chen Fan may be the only one among them who seems to be a little enthusiastic about investing in overseas markets.

Of course, maybe Second Brother Wang and the others also saw through the trace of fear that Chen Fan had hidden deeply, but everyone didn't reveal it.

"Xiaojing, we overseas people are doing our best to help Xiaofan bid for that power plant. It's actually not bad. Although it is difficult to make a fortune with this type of asset, it is not a problem to make a stable profit. Your idea of ​​​​acquiring a public utility company is also good. Yes, they are all worth investing in and betting on.”

In fact, in the investment projects of Brother Wang and his circle, they also own public utility companies in many large cities in China. These companies are all under the control of Zhang Jianjun, but of course they will not sell this kind of chickens that can continue to lay eggs. For Chen Fan.

Besides, didn't Chen Fan already find his target?
He wanted to eat the assets that the Southern Investment Group might sell off, which would not touch their cake, so it was logical to fully support Chen Fan's plan.

At this time, the Southern Investment Group is no longer just negotiating with the Chinese Commercial Bank. Many banks, led by the four major domestic banks, have all asked the Southern Investment Group to reduce their loans. Now they are united.

In the evening, Chen Fan went to Oaktree Capital again. This time he didn't go to the trading room, because there was no trading project, he just came to check the latest news, so he went directly to Zhang Quan's office.

Nothing unusual happened. Before the rice stock market opened, Globe Telecom submitted an application for bankruptcy protection to the court, and the court accepted it. There is no reason to refuse it.

The bankruptcy case also became the largest bankruptcy case in the history of global telecommunications with 224 billion yuan in company assets and 124 billion yuan in debt, and the fourth largest bankruptcy case since the entry into force of Chapter 11 of the US Bankruptcy Law. Texaco and American Financial Corporation.

And the actions of Heung Kong Industrial, which Chen Fan was concerned about, were immediately found out. After Globe Telecom filed for bankruptcy protection, the representative of Heung Kong Industrial announced the plan proposed by Heung Kong Industrial.

Heung Kong plans to invest 7.5 million yuan to acquire 79% of the shares of Globe Telecom, and the creditors of the company will get [-]% of the shares of the new company, as well as [-] million yuan in cash and [-] million yuan in bonds.

However, this value obviously did not satisfy the claims of the creditors. Within an hour after the news was announced, many creditor banks of Global Telecom expressed that they would not accept this plan because their losses were too great.

It is unacceptable to recover less than 10% of the tens of billions of dollars in debt.

Although the stock exchange has urgently stopped the stock trading of Global Telecom because of Global Telecom's application for bankruptcy protection, according to the exchange, the news is too important. In order to avoid the loss of investors, they stopped today's stock trading, but tomorrow they will resume trading.

In other words, this suspension of trading restrictions is only temporary, and one day is enough for all investors of Globe Telecom to know, and the resumption of trading tomorrow can prevent unsuspecting investors from buying or selling by mistake Globe Telecom stock.

It also broke the market's previous rumors that Global Telecom intends to terminate the transaction. After all, there are strict conditions for terminating a company's listing qualification, and the current situation of Global Telecom obviously does not fall within this scope.

Although the quotation given by Heung Kong Industrial is actually meaningless compared to investors in the market, because in the end, they will get almost nothing. Of course, they will still get a little, that is the consideration submitted by Heung Kong Industrial, [-]% of the shares and [-] million yuan in cash and [-] million yuan in bonds.

As investors, they can also get a little bit of it.

Because of the suspension of trading, it seems that Global Telecom still has a market value of hundreds of millions of meters, but all investors know that after the market opens tomorrow, Global Telecom's stock price will definitely fall below the 1 meter mark, and there is no way to save it. share price.

The final stock value involves how many shares these investors can share in the consideration proposed by Heung Kong Industrial. If the share is more, the stock price may increase by 1 cent, and if the share is less, there may be nothing.

After the spokespersons of several banks voiced their opposition to Heung Kong's acquisition plan, some network equipment manufacturers who had huge payments to Global Telecom also voiced their opposition.

Through this quotation, most people can actually see that Heung Kong’s valuation of Global Telecom’s huge submarine optical cables is really too low. Although it cost tens of billions of meters to lay them, but now According to the quotation given by Xiangjiang Industrial, their value is only more than one billion yuan, which is obviously unacceptable.

As the world's first private owner of submarine optical cables, Global Telecom controls a huge optical fiber network connecting more than [-] major cities in [-] countries and regions. Chinese businessman.

"How much is this company worth?"

Chen Fan also looked at the quotation given by Heung Kong Industrial with a little dumbfounded, and felt that it was a bit unbelievably low.

In the past, Chen Fan thought that Xiangjiang Industrial would have to prepare three to five billion yuan for this asset to be worthy of its value, but the information sources clearly showed the data, and Xiangjiang Industrial had no valuation for Global Telecom. More than 50 billion yuan.

Zhang Quan on the side suddenly smiled at this time, "I don't know how much Global Telecom is worth, but what is certain now is that the debt of 124 billion yuan was announced by the company itself, so it will only be more or less. The specific figures can only be determined by whether the company has made false accounts like Enron did.”

"However, this restructuring plan includes 21% of the company's shares, cash and bonds, and this money will be used to write off the 124 billion yuan in debt."

Chen Fan said puzzledly.

"This is just a plan, and the creditors will not let it go easily. If you operate according to this plan, if there are no other events, it is basically impossible to reach an agreement."

Zhang Quan continued on the sidelines.

To be honest, Chen Fan had been planning to acquire a power plant before, to prepare a sustainable and stable profitable asset for himself and his descendants.

But now, when he saw the mess left by Global Telecom, he suddenly felt that the optical fiber network seemed to be more valuable and worth investing in.

The point is that Xiangjiang Industrial offers such a low price, which I can totally afford.

If they bought the power plant assets spun off from Enron before, even the smallest one, according to the current news, the value would be more than 37 billion yuan, and the final transaction price may reach 42 billion yuan according to the evaluation.

Chen Fan has the money to complete this transaction, but after the transaction is completed, he will not have much cash.

"You said, if I increase the quotation to write off the accounts of those creditors, how much will I get the consent of these people?"

Chen Fan asked suddenly.

At this time, it was Zhang Quan's turn to be a little dumbfounded. With a debt of 124 billion yuan, it would cost creditors to agree to bear a huge loss at a price to balance the accounts. Who knows, there are so many creditors.

But at this time, Zhang Quan can only say according to some previous similar cases: "It is estimated that at least 30% or 50% will be required, that is, it will cost about [-] billion to [-] billion yuan before the creditors can accept it."

"With this network, can you make money without debt?"

Chen Fan suddenly asked again.

"It's hard to say. According to reports from the United States, Global Telecom mainly has a problem of insufficient income. Their network utilization rate is low. Of course, there are also rumors that the revenue they announced now is actually not enough. They Appears to be in collusion with Quest to falsify revenue."

Zhang Quan said with a frown.

"How to make fake accounts? Shouldn't their income be collected directly from users?"

Chen Fan asked, feeling a little surprised.

"There is no direct business relationship between Globe Telecom and Quest, but Quest previously acquired Miguo West, which is also a company that provides data services, and it is said that they are connected because of this.

There are reports that they exchanged 1 million yuan of capacity last year, which probably means that I use your capacity and you use mine. Yuan is income.

It is said that similar operations are not limited to Quest, and other companies have also done similar transactions. "

Zhang Quan said after thinking about it, but he seemed to remember something again, got up and rummaged through the folder next to his desk, and quickly found something, and then handed it to Chen Fan after careful inspection.

"Mr. Chen, these are some companies that have gone bankrupt in the United States in the past two years. Most of them are companies involved in communication services. You know, after the technology stock bubble burst, many companies went bankrupt, and many listed companies have disappeared."

Chen Fan took the information handed over by Zhang Quan and looked at it. In another bankruptcy case of a telecommunications company, the securities holders could only get 5.6 million yuan and 14% of the preferred shares at first, but after negotiations, they finally Received 6.7 million yuan in cash and 1.75 million yuan in preferred shares, and can also purchase a 6% stake in the company.

In another telecommunication company, Kovad, the common stockholders got 80% of the shares of the reorganized company, which had less debt and only a broken cash flow.

(End of this chapter)