Rebirth of the Capital Legend

After the internal company meeting, Su Yi discussed with Wang Huaijin the preliminary plan for the proposed acquisition of FXCM International, and finally decided that he, Wang Huaijin, and several other members of the negotiation team would go to the Cayman Islands headquarters of FXCM International tomorrow.

Then, the next day, July 7, Wednesday, Su Yi, Wang Huaijin and his party took a flight to leave the Magic City.

At the time when Su Yi and his team were traveling to the Cayman Islands, preparing to seek a direct interview opportunity with the senior management of the board of directors of FXCM International Group.

The headquarters of 'FXCM International' Group at this time.

An internal board meeting concerning the future fate of the group is also being held urgently.

"Tasia, how long can the group's liquidity support the company after accounting for this round of 'referendum black swan' incident?" During the board meeting, board member Noel asked the group's financial executive Tasia, "Can we still get quick loans and financing from banks or other financial institutions?"

Tassia responded: "Our group's net cash flow is currently $11.52 billion, of which about $8 million is short-term and medium-term liabilities. If we pay off the total of $11.23 billion in our company's many long positions in this round of "referendum black swan" events, our group will have less than $3000 million left in its account. This amount of liquidity is only enough to support us for one to two months.

As for the one to two months, I would like to seek quick loan financing from financial institutions.

Given the rapid increase in our group's qualifications and current debt ratio, I think it will be quite difficult to quickly obtain loan approval from financial institutions."

“What if the huge losses caused by investors’ short positions are delayed?” asked Patrick, a board member. “What will be the result?”

Tasya said nothing.

Next to her, Isaac, president of FXCM International's market business and also a member of the board of directors, responded: "If we delay or refuse to pay the huge losses of this huge position on the grounds that investors have lost their positions, then these losses will be transferred to other trading institutions that provide us with trading seats or work closely with us.

in other words……

Although doing so can transfer the risks of our company.

But this will be a devastating blow to the reputation our company has built up over the years.

After all, the risk of investors losing their positions and abandoning their accounts is caused by the failure of risk management within our group and is a risk issue within our company.

Once this risk is transferred, refuse to pay the excess losses caused by the short position.

Well, although our company can avoid the risk of bankruptcy, we will not be able to carry out future business.

It can be said that if we do this, all our previous partners will sever their cooperation with us, the dedicated seats currently used by our company in major global exchanges will all be deactivated, and our company will be included in the industry blacklist and lose all its customer base.

I think the consequences of doing so are more serious than the company going bankrupt.”

"We must bear the risk of a large number of long positions being liquidated due to our company's internal risk control issues." Stuart, a board member and chairman of the company, pondered for a while and said, "In solving all the current problems, the company's reputation is definitely the most important. If we lose this foundation, then the foundation for our company's survival will be gone."

"Is it possible to recover some of the debts owed to investors who have lost their positions and abandoned their accounts?" Noel asked.

Isaac responded: "We are already doing this, but although we have the personal information and contact information of investors, it is still extremely difficult to recover the debts caused by such short positions, not to mention... our investors come from all over the world. Although relevant laws and regulations can support us, the time and capital costs of recovering the debts from investors are too high. It can be said that distant water cannot quench immediate thirst."

"It seems that we can only seek external financing." Patrick sighed.

"Lending equity and seeking financing from other investors is definitely the fastest way," Isaac said. "And it will also be beneficial to the future development of our company and will not lead to excessive operating burdens." "How many institutions have shown interest in us and have made initial contact with us?" Stewart asked.

Isaac responded: "There are four in total. Two of them are Wall Street capitals, one is our direct competitor, and the other one... I think you probably can't guess who it is."

"Who is this unexpected family you're talking about?" Stewart asked.

Isaac smiled and said, "It is the Chinese-funded institution 'Hua Yi Capital' that once opened a large number of short positions in our company and made billions of dollars in this round of 'Black Swan of the British Pound' incident."

"It turned out to be this organization." Noel showed a look of surprise on his face and asked, "What conditions did this organization offer?"

Isaac responded: "Among the four institutions we contacted, the conditions offered by Huayi Capital are relatively more sincere. Moreover, after the initial telephone discussion, their company's President Su and his team members are already on the way."

"What are the specific conditions?" Stewart asked.

Isaac replied, "I spoke to Mr. Su from Huayi Capital a few hours ago. He seems to want to acquire our group in full and is willing to maintain our group's existing operating model and all company employees after the acquisition is completed."

"What is Mr. Su's valuation of our group?" Stuart continued to ask.

Now that the group has come to this point and cannot avoid the fate of being sold, he naturally wants to find a good buyer for the company at a good price.

What's more, the other party bluntly stated that even if the acquisition was successful.

There will be no adjustments to the group's existing operating model, staffing, and organizational structure, which is very attractive to him.

Isaac replied, "I sounded out Mr. Su. Although he didn't reveal the specific acquisition negotiation price, he said it would be higher than the bids from other institutions."

"Since Mr. Su is sincere, let's get in touch with him," said Noel.

Currently, the group's operating conditions have deteriorated extremely, its capital chain has collapsed completely, and it is almost insolvent. If he does not sell the company, the shares he holds will be worthless.

Therefore, from an inner choice point of view, since there is a good buyer, he is naturally willing to sell his shares.

It also supports the sale of the company as a whole.

"What about the others?" Stuart glanced at the other board members of the group.

Patrick hesitated for a moment, thinking about the current predicament facing the group, and sighed softly, saying, "If we can only rely on external financing to solve the current predicament, then we can only support it. Alas... Last year's 'Swiss Franc Black Swan' caused our company to lose a huge amount of money. We should have been alert at the time and improved the risk control system."

"It's useless to say this now." Stuart responded, and immediately turned his eyes to Isaac and continued, "Then let's follow everyone's unanimous opinion and see the other party's sincerity first."

Isaac nodded.

Afterwards, after the board meeting ended, Isaac called Su Yi again.

Later, when Su Yi and his group arrived at the Cayman Islands, Isaac and the core executives of FXCM International had been waiting for a long time. (End of this chapter)