Tokyo, 1991: Starting as a bank clerk.

Takeshi Iwakura also glanced at him.

There was no disdain in his eyes, but there was no expectation either.

A newcomer.

I've only been working here for less than a month.

It's rare to see problems with Fuji Metal these days.

A €500 million control risk financing deal and a €30 million fraudulent loan are not the same thing.

Kiryu Yaya straightened up a bit.

He didn't rush to refute Iwakura Tsuyoshi, but instead gave a slight bow.

"I believe Section Chief Iwakura's judgment is correct. If this is merely an internal power struggle within the Shiraishi family, Mitsubishi Bank should not get involved."

Takeshi Iwakura's eyebrows twitched slightly.

Kiryu Yaya continued:

"But I think the Shiraishi Refrigeration incident is not just a family feud."

The meeting room became even quieter.

Kiryu Yaya opened the folder in front of him and turned to the page with the business data.

"First, look at the business itself."

"Baishi Refrigeration's revenue over the past three years was 1.58 billion, 1.63 billion, and 1.61 billion respectively. Operating profit has remained above 100 million euros, and the accounts receivable collection cycle is around 40 days with no significant delays. There are no large bad debts from major customers."

"In other words, the problem with White Stone Refrigeration is not operating losses, nor has its cash flow collapsed."

He paused.

"The problem stemmed from Takao Shiraishi's failed personal speculation, which triggered a share pledging crisis. The company itself still has the ability to repay the debt."

Iwakura Tsuyoshi did not speak.

Kiryu Yaya flipped to the equipment information.

"Let's look at equipment upgrades next."

"The No. 2 compressor unit of the Tangdao Cold Storage has triggered an overload alarm, and the power consumption has increased by about 15% compared with the same period last year. The outbound volume of the Baishi Refrigeration Unit has not increased accordingly, and the door seal was replaced last year, so the abnormal power can be basically judged as a decrease in the efficiency of the unit."

“Cold storage equipment is different from ordinary manufacturing equipment. If a regular machine tool is down for a day, it means one less day of production. If cold storage equipment malfunctions, it can result in damage to customer goods or even a collapse of contractual credit.”

He looked at Tsuyoshi Iwakura.

"The replacement of 90 million units of equipment is not a fabricated reason, but a genuine necessity."

Iwakura nodded slightly.

Kiryu Yaya continued:

"If we calculate based on €500 million, a ten-year term, and equal repayment in principal, the annual principal repayment would be approximately €50 million. Based on the current interest rate, the interest in the first year would be around €30 million. The total would be around €80 million."

"Baishi Refrigeration's operating cash flow over the past three years has been approximately 120 million to 130 million. After the equipment upgrade, electricity and maintenance costs are expected to decrease by 10 million to 15 million annually."

"The repayment pressure is not easy."

"But it's not that there's no way to break even."

He did not describe Whitestone Refrigeration as a perfect customer.

This, in turn, made the people in the meeting room listen even more attentively.

Kiryu Yaya flipped to the customer transaction details.

"Thirdly, and this is what I consider the most important point."

"White Stone Refrigeration is not an isolated company."

Chapter 26 Joint Claims

Kiryu Yaya added:

"Daimaru, Hankyu, New Hankyu Hotel, Osaka Royal Hotel, several food companies and banquet suppliers. Shiraishi Refrigeration is one of the few companies in downtown Osaka that can simultaneously handle frozen storage, refrigerated sorting and low-temperature distribution within the city."

"The location of Dojima Cold Storage is very special. It is very close to the hotel and department store clusters in Kitashinchi, Umeda, and Nakanoshima. For these customers, Shiraishi Refrigeration is not just any warehouse, but a key node in the cold chain supply."

He raised his head.

"In other words, Shiraishi Refrigeration is actually one of the leading cold chain suppliers in the Osaka area."

Takeshi Iwakura's finger stopped at the edge of the document page.

Kiryu Yaya didn't stop.

"If it goes bankrupt, or if Kansai Urban Development takes control and demolishes the Dojima Cold Storage, the impact will not be limited to Shiraishi Refrigeration itself."

"Several hotels will be immediately impacted."

“Especially the Royal Hotel Osaka.”

As he said this, Masakazu Yamada seemed to remember something and suddenly looked up.

Kiryu Yaya released another document.

“I have checked the existing debt ledger of the Osaka branch. The Osaka Royal Hotel underwent renovations to its banquet hall and guest rooms last year, and the main financing bank was our Mitsubishi Bank. The outstanding balance of the financing is still 1.8 billion euros.”

The expressions on the faces of the people in the meeting room finally changed.

Iwakura Tsuyoshi finally spoke:

"Was that deal with the Osaka Royal Hotel the renovation financing done by the Second Sales Department last year?"

"Yes."

Kiryu Yaya nodded.

"The outstanding balance is 1.83 billion yuan. According to the repayment plan, the next two years will be the period with the greatest cash flow pressure."

The air in the meeting room noticeably thickened.

Kiryu Yaya's voice was still not loud.

"The Osaka Royal Hotel is the largest customer of Shiraishi Refrigeration in the hotel category. Dojima Cold Storage has long been responsible for banquet ingredients, frozen seafood, some dairy products, and low-temperature storage."

"If Whitestone Refrigeration suddenly stops operating, the hotel certainly won't go bankrupt immediately. But switching to a cold chain isn't as simple as just changing suppliers. New warehousing, new delivery routes, new temperature records, and new settlement cycles all take time."

"And after May, it is the peak season for banquets and weddings."

He paused.

"The impact on hotel revenue will ultimately be reflected in the security of our claims against the hotel."

No one spoke in the meeting room.

Even Iwakura Tsuyoshi fell silent.

Kiryu Yaya moved the client list forward a little.

"This is only the largest one."

"Among Shiraishi Refrigeration's other major clients are also loan recipients of our Osaka branch. Department store food divisions, banquet suppliers, and hotel renovation financing, the total outstanding debt exceeds two billion euros."

"Therefore, this 500 million yuan financing is not only about Whitestone Refrigeration."

"It also concerns the safety of several existing debts held by Mitsubishi Bank."

After those words were spoken, the conference room became so quiet that the sound of the air conditioner blowing could be heard.

The way the section chiefs looked at Kiryu Yaya finally changed noticeably.

They originally thought that this newcomer was already quite good, as he could review the accounts and identify suspicious points.

But things are different now.

He's not just focusing on one company.

He integrated Shiraishi Refrigeration into Osaka's supply chain, and then integrated that supply chain into Mitsubishi Bank's own debt portfolio.

This perspective is invaluable.

Iwakura Tsuyoshi looked down at the client list.

A moment later, he reached out and took the document containing the debt information of the Osaka Royal Hotel.

I turned two pages.

He didn't say anything more.

At this moment, Kiyomasa Ogaki raised his head.

The finance minister, who was nearing retirement, seemed to finally snap out of his reverie amidst his teacup and documents, and glanced at Kiryu Yaya.

There was a hint of surprise in his eyes.

They probably didn't expect a newcomer to say things this way.

Kiryu Yaya continued:

"Of course, this does not mean we should lend money unconditionally."

"On the contrary, this money must not be deposited directly into Whitestone Refrigeration's account."