Reborn Action Star: Starting in Hollywood

Chapter 303: Power is the only truth
The price is being completely bound and locked.

In Betty's plan, the target of acquisition was: Long Island Investment Bank.

This is a small investment bank that is on the verge of bankruptcy and is now in a serious debt crisis.

Morgan Stanley owns 30% of the investment bank, making it a major shareholder.

In the bankruptcy reorganization plan for Long Island Investment Bank, Betty hopes to introduce an external investor to take over the bank in full.

Contrary to popular belief, the bankruptcy of an investment bank is often not necessarily because it is truly beyond redemption, but rather because of fluctuations in the economic cycle, which lead to floating losses on the assets it holds and the maturity of rigid debts, triggering a debt crisis.

As long as there is an investor willing to inject $30 billion into Long Island Bank, he can take away the remaining 30% of the shares except for the 70% held by Morgan Stanley and obtain absolute control.

Betty hopes Lin Yuan can be that person.

But Lin Yuan doesn’t have 30 billion US dollars. Where can he get so much money?

A super hit like "The King's Avatar" only earned the company $10 billion, and it also had to bear the cost of shooting subsequent film projects.

Considering that a large amount of funds would be needed to attack the rival company's stock price in October, Lin Yuan felt even more stretched.

Betty's solution to this problem was to lend money to Lin Yuan.

Morgan Stanley lent US$30 billion to Lin Yuan and required all companies under Lin Yuan's name to bear joint and several liability for compensation.

The guarantee for this loan actually includes all the properties under Lin Yuan's name:
The film company has two domestic projects with a total amount of US$100 billion, and Lin Yuan is personally bound to bear unlimited joint and several liability.

Therefore, the risk of this loan is not as high as imagined.

Lin Yuan used the borrowed money to revive the Long Island Investment Bank in which Morgan Stanley held shares, and also avoided the problem of impairment of his own assets.

It’s like my company is going bankrupt. As a major shareholder, I don’t save the company myself. I lend money to others and let them save it.

If someone else saves the company, I don't have to worry about losing all my money, and I can even use debt to tie up the person who saves the company.

When you make this company, which was on the verge of bankruptcy, bigger and stronger again, I, as a major shareholder, can still earn this profit.

It's like killing three birds with one stone. Morgan Stanley really made a lot of money in this transaction.

Otherwise, how can we say that capital is like the most cunning devil?

But Lin Yuan still wants to say that this agreement is very fair.

It gave Lin Yuan what he wanted most at the moment. As for those things that tied Lin Yuan to death, they were actually disguised amulets.

While he was tightly bound to Morgan Stanley, he naturally became its ally.

Is being an ally of Morgan Stanley a good thing?

If he were an ally like MGM that could not provide value, he might be abandoned at any time or even become a bargaining chip.

But if he can provide enough value, he will be treated as a guest of honor, and there is even a possibility that he will become the host in the future.

The only truth in this world is that you must be strong enough.

Lin Yuan had already agreed to Betty's proposal, but he still couldn't help asking:

"I'm already burdened with a lot of debt and carrying a higher level of leverage. Aren't you afraid that I'll eventually collapse?"

"You mean the bet-back repurchase agreements for those domestic projects?" Betty said.

Lin Yuan nodded. It seemed Morgan Stanley had been targeting him for a long time and had already conducted thorough due diligence on him. The so-called gambling agreement referred to the gambling agreement Lin Yuan had signed with investors during the fundraising process for the two large domestic projects.

The total investment in the two projects was as high as US$100 billion, but Lin Yuan actually invested only US$5 million.

Of the remaining $95 billion, $15 billion came from Mr. Eisen's industrial investment fund.

This $15 billion does not have any gambling clauses such as repurchase, so it is not a big risk for Lin Yuan.

But precisely because there was no risk, it was very difficult to make this happen. For this reason, Lin Yuan went to South Korea and, after securing Lee Boo-jin, investors represented by Samsung Group agreed to the investment.

The remaining $80 billion is almost a high-risk bet.

By adopting the agreement template of disguised equity and actual debt, investors can make a profit without any loss.

If the project makes money, they will receive huge equity appreciation dividends.

Even if the project loses money, they still have a guaranteed annualized return of 12%.

All the risks fall on Lin Yuan alone, and he bears personal unlimited joint and several liability.

Of course there are benefits, that is, Lin Yuan has locked the other party's profit ceiling.

Since it is a bet, once Lin Yuan makes a huge profit, he can also buy back the shares he gave up at the agreed price, so that all the profits can be concentrated in his own hands.

As I said, the fundamental principle of this world is that you are strong enough.

(See Chapter 160 for details)
Therefore, Lin Yuan is already heavily in debt. Would Morgan Stanley still dare to lend him money?
Betty said: "Before the release of "The King of Spy", there may have been some concerns, but now we have re-evaluated your value."

"Haha, you guys are really realistic." Lin Yuan replied with a smile.

No wonder it didn't appear earlier or later, but happened to appear at this time. It turns out that capital will not release the eagle until it sees the rabbit.

The huge success of "The King of Spy Wars" made all capitals re-evaluate Lin Yuan's value and give him a higher valuation.

"Happy working with you?" Betty extended her hand.

"It's a pleasure working with you!" Lin Yuan shook hands with her again.

The agreement was reached, marking the official establishment of alliances between the two sides.

"Mr. Lin, I know you are still a little wary of us. But please believe that as long as you have enough value, Morgan Stanley will be your most reliable ally." Betty said.

"That's really direct, but I like your way of communicating."

"Mr. Eisen can only help you within the film industry. Mr. Lin, when your career is no longer limited to the film industry, you will need allies like us." Betty said, "By the way, are you planning to go to Japan to meet with Sony CEO Nobuyuki Idei?"

"You all know this?"

Lin Yuan was shocked. Is this the tentacles of capital?
Is it possible that every move you make is under the other party's eyes?
Noticing Lin Yuan's vigilance, Betty quickly said with a smile, "Mr. Lin, don't think too much. This was told to me by Idei Nobuyuki."

"Clam?"

"You may also know that Morgan Stanley is a major shareholder of Sony, and Nobuyuki Idei is the person on the board of directors who represents our interests," Betty said.

So that's how it is. No wonder Betty knew Lin Yuan's itinerary. After all, the information was leaked directly from the source.

"Can I ask the purpose of your visit?" Betty said.

(End of this chapter)