Tokyo Barrister: Start the law firm bankruptcy

Chapter 853 All Quiet on the Western Front

Although Nippon Steel's request for interest waivers from its major banks was kept secret, it soon became known. When the news broke in the capital market, it was the day before Nippon Steel's offshore dollar bonds were to pay interest.

As the rumor spread, speculation about Nippon Steel's financial difficulties immediately turned into fear of holding its securities. During the day, Nippon Steel's stock price did not fluctuate significantly on the Tokyo Stock Exchange. However, Nippon Steel's offshore dollar bonds immediately fell by more than 10%.

The reaction of overseas bond markets has clearly shown concerns about this rumor.

Less than an hour after overseas dollar bonds fell sharply.

Nippon Steel immediately announced a press conference to clarify the rumors.

Nippon Steel's chairman Shibata was of course furious. It is said that he smashed several cups in his office, which frightened his subordinates outside. Shibata knew that the news must have been leaked by the bank. This undoubtedly had a greater impact on Nippon Steel's market reputation.

Think about it, who would be willing to do business with a manufacturer that is in financial trouble? Even if the payment is made, it is unlikely that the goods will be exchanged.

When rumors about Nippon Steel began to spread in the market, the news was undoubtedly shocking, so much so that many people and institutions did not believe it. Nippon Steel was once the pride of Japanese companies. When its steel production was at its peak, one steel plant was equivalent to the annual output of a small country.

Nippon Steel witnessed the rapid development of the Japanese economy.

It survived the economic downturn in the East.

It even survived the real estate crisis in the West.

Since its establishment, Nippon Steel has experienced numerous market fluctuations, both large and small.

It is no exaggeration to say that it is a centenarian.

However, the world is peaceful now and the economy is still booming.

The sudden appearance of such big news was beyond everyone's expectations.

The share price of Nippon Steel started to fall when the rumor came out. But with the news of the press conference, the share price of Nippon Steel started to rebound. In the face of such information uncertainty, the financial giants in the capital market, whether they are long or short, did not take any obvious actions.

Soon, it was time for the afternoon press conference.

The location was in the small hall of the Tokyo Stock Exchange. It was called a "hall", but it might be more appropriate to call it a room, a narrow place. Very early, the room was crowded with reporters wearing permits. The floor was covered with cables of various camera equipment. Many people who couldn't find a seat just sat down cross-legged.

Nippon Steel's spokesperson, as well as Chairman Shibata and Financial Director Nagai were present.

As they walked into the venue, many flash lights suddenly went off.

Shibata hated this scene. If the news hadn't leaked from the bank, why would he have come here to deal with the reporters? !

The press conference will begin soon.

The spokesperson of Nippon Steel said something bland, saying that the company's financial stability was acceptable and that the rumors were a misunderstanding of the company's financial situation. However, every word of the spokesperson of Nippon Steel emphasized the financial strength of the company, but in fact, the words were flawless and he never directly denied the authenticity of the rumor.

It was time for reporters to ask questions.

Immediately, a reporter raised his hand, stood up and asked a straightforward question:

"Is it true that your company is negotiating with the bank to waive interest?"

Reporters want to play it straight.

They want to hear a clear answer from management on the ground: yes or no. One or the other.

There is no ambiguity.

Answer the question directly and directly.

Nippon Steel's chairman Shibata adjusted the microphone, coughed, and said, "Thank you, reporter, for your concern for Nippon Steel. I want to emphasize that a large company like Nippon Steel deals with banks every day. Please note that every day, we may form new arrangements with banks regarding future financing plans every day."

"These potential arrangements are changing every day," Shibata's voice continued. "Even though I am the chairman, my subordinates are discussing with the banks every day, and what I know may not even be the latest situation. Depending on the degree of cooperation between each bank and Nippon Steel, each bank's financing plan and the depth of future cooperation with Nippon Steel may change."

"Regarding your question," said Nippon Steel's chairman Shibata, "I can tell you that, up to now, Nippon Steel has not yet formed any written documents on a new financing plan with any of its major banks."

Shibata's words fell.

The reporters in the room immediately quickly recorded Shibata's latest remarks on their computers and transmitted them to their news agencies.

Shibata is an experienced manager of a listed company. He certainly knows that the focus of this press conference is not to clarify the so-called market rumors. Moreover, he knows in his heart that the rumors are true. The most important thing about this press conference is to rebuild the market's confidence in Nippon Steel.

Then, Shibata spoke again:

"Today we noticed that the dollar bonds issued by Nippon Steel fell sharply in the overseas market."

Hearing the chairman talking about such an important market situation, all the reporters raised their heads and looked at Shibata.

"The finances of our Nippon Steel Group have always been sound," Shibata said. "Tomorrow is the interest payment date for the US dollar bonds. We will definitely pay the interest to the bondholders in full and on time according to the conditions when the bonds were issued. Nippon Steel will definitely not default on its debts!!"

Shibata spoke these powerful words.

In less than a minute, the price of call options on Nippon Steel in the capital market began to rise.

The flash lights in the room started flashing again.

Originally, in the overseas market, some Western short sellers had already taken the lead in shorting Nippon Steel's bonds - although they had not yet taken action on Nippon Steel's stocks.

However, with Shibata's latest words at the press conference coming out.

The price of Nippon Steel's dollar bonds rose instantly.

In just less than 15 minutes, it soared again by 8%.

Recovered most of the lost territory.

The short sellers of Nippon Steel bonds suffered heavy losses.

You should know that many asset management institutions that short bonds will use leverage.

This means that the losses for short sellers are far greater than 8%.

Shibata looked at the reporters below and made these bold statements, but his palms were actually sweating. He knew very well how serious the financial situation of Nippon Steel was. However, even so, he had to withstand the pressure. If he couldn't withstand it - Nippon Steel might really not make it this time!

(End of this chapter)