Korean TV series: King of Peninsula 1997

Chapter 587: Knife after Knife
In February, various daily newspapers began to bombard Daying Haiyang and Zhu Mengyuan in turn.

They focused on three points.

The first one is naturally to constantly expose the current difficulties and even desperate situation of Daying Ocean, with the purpose of undermining the market's confidence in Daying Ocean.

By publishing various research reports, it was revealed that the order volume on hand at Daying Ocean was lower than the break-even point, and the idle rate of its shipyards was over 60%, implying that Zhu Mengyuan was powerless to turn the situation around and could not get Daying Ocean back on track.

There was even an insider who betrayed Zhu Mengyuan, which dealt a heavy blow to him.

An internal executive leaked internal documents showing that the payment period had been extended by several years.

After this was exposed, Zhu Mengyuan, who was a very cunning person, was so angry that he kept cursing and throwing things at the meeting.

But this did not help. Soon, a few suppliers that had no binding relationship with Daying Ocean stopped selling on credit, and the entire supply chain began to be on the verge of breaking.

Zhu Mengyong, who keeps up with the times, has not stopped his steps. He is very good at learning from Li You.

Li You attaches great importance to the Internet.

On online forums, he is hiring emerging financial bloggers and shipping analysts to launch various topics on social media on future mobile phones, mainly to exaggerate the impact of Daying Ocean's bankruptcy and liquidation on employment in Busan and surrounding areas, as well as the impact on the industrial chain, which continues to cause anxiety among the Busan government and people.

The second is to package the justice of Daying Group's annexation of Daying Ocean in public opinion.

All daily newspapers related to Daying have placed columns in newspapers and on television programs, emphasizing that after the merger, they will integrate excess capacity to avoid a price war that drags down the entire industry, and are also trying to gain tacit approval from peers around the world.

The final blow in public opinion is to put pressure on the government.

During the conversation between Li You and Li Lianchang, Li Lianchang keenly perceived, or was slightly hinted by Li You about something, that the Blue House had been acting contrary to its usual behavior recently and had not intervened in the affairs of Daying Haiyang in a high-profile manner, acting as if it didn't matter if Daying Haiyang went bankrupt.

Zhu Mengyong, unable to wait, ordered Daying Group to submit a research report to the Ministry of Transport, pointing out that the deep-water port terminals and ship technologies currently held by Daying Ocean were related to transportation safety. If acquired by foreign capital, it would threaten the country's supply chain, forcing Daying Ocean to give priority to local acquirers.

In Busan, Zhu Mengyong has been meeting with relevant officials and affiliated companies, promising to retain the headquarters and R&D center after the merger and acquisition, and to invest in replenishing working capital.
This series of public opinion tactics has caused pressure from all walks of life for Daying Haiyang and Zhu Mengyuan during this period. Even he, who is good at scheming and maintaining personal connections, can no longer withstand it.

Only when you are in danger do you realize whether your relatives and friends are reliable.

Even though Zhu Mengyuan is the largest shareholder of Daying Ocean, and even though he is now the executive officer of Daying Ocean and holds a lot of power in Daying Ocean, "a lot" is not "all".

From Zhu Mengyuan's perspective, he really didn't expect that Zhu Mengyong would openly start a war with him at this time.

He originally wanted to take advantage of the dirty tricks between the Kinmen Group and the Daying Group, and play both sides to get through the difficult times.

But what was even more unexpected was that Zhu Mengyong satisfied Li You's appetite with a small position as the mayor of Busan.

Zhu Mengyuan always felt that he had many choices. At least the Kinmen Group was definitely coveting Daying Haiyang. But when Daying Group attacked Daying Haiyang, the Kinmen Group only needed a mayor of Busan to go there.
Even the title of Busan mayor now has the word "acting" in front of it. The official election for Busan mayor will have to wait until next year.

Not
As the chairman of Kinmen Group, does Li You have such a small appetite?

Even if there was any other secret agreement, Zhu Mengyuan didn't believe that his younger brother could complete it on time as agreed.

In the final analysis, these people did not notice the financial crisis that had already begun to emerge on the other side of the ocean, nor did they expect that all walks of life would be greatly impacted.

Maintaining stability is the most important thing at this time, rather than choosing to expand territory when facing internal and external troubles.

These people, including Zhu Mengyuan, are unaware of the relationship between Li You and Zhu Mengyong.

After carefully studying the recent actions of the Kinmen Group and the various measures taken by Li You within the Kinmen Group to cope with the financial crisis, in their eyes, there were problems within the Kinmen Group, and Li You was currently rectifying the situation and could not take care of them.

This is the most reasonable explanation they can come up with.

Otherwise, it would be laughable that Li You, who always has a huge appetite, wants an acting mayor.

Zhu Mengyong was certainly also trying hard, and even kept meeting with the elders of the Zhu family in Daying, that is, the brothers of the former president Zhu Rongyi and his uncles.

Can.
The sturdy old man in front of Zhu Mengyuan sighed, "Mengyuan, to be honest, there is nothing wrong with bringing Daying Haiyang back to the group..."

"Bring Daying Ocean back to Daying Group? What is Daying Ocean?"

Zhu Mengyuan looked disappointed.

"It seems that the second brother and the third uncle are more intimate," Zhu Mengyuan didn't care whether the words were respectful or not. He sneered, "Why should I hand over the big camp ocean that my father left for me to Zhu Mengyong, the second brother?"

"This..." Zhu Rongxing sighed helplessly, "In one's lifetime, one always has to make various choices."

Zhu Mengyuan was drinking tea, and he felt that the tea was extremely bitter. "So, Third Uncle, are you here to lobby for the Second Brother today?"

"You want me to sell my shares to Zhu Mengyong?"

Zhu Rongxing couldn't help sighing, "When you took over Daying Ocean, the situation of Daying Ocean was actually quite good. This is something everyone knows, but over the years, you have led Daying Ocean into a pit."

"Actually, everyone knows your abilities, but there are some things..."

Zhu Rongxing shook his head. "You are a capable person, but your ability is not in business or management. If you continue to do it yourself, Daying Ocean will be doomed."

Zhu Mengyuan put down the teacup heavily, and the tea splashed all over the table. "Third Uncle is open-minded, but you are open-minded only because the incident did not happen to you."

"You keep asking me to give in, telling me that I have no business ability, but now Lao Er has given me a legitimate way to make a living?"

"What do you mean by buying shares? How much are Daying Ocean's shares worth now?"

"I'm afraid Zhu Mengyong has completely driven me out of Daying Group by paying a beggar some money."

Zhu Rongxing remained silent because Zhu Mengyuan was telling the truth.

He still had a lot of things to say, but he had no way to say them.

These uncles have advised Zhu Mengyong to give Zhu Mengyuan a decent retirement.

After all, they are brothers, and the Zhu family has many elders, unlike the Shunyang and Chen families. However, Zhu Mengyong was always vague, and his actions continued to increase.

Are you saying that what Zhu Mengyong did was wrong? Or is it that what Zhu Mengyuan just said was wrong?
After thinking about it carefully, Zhu Rongxing felt that there was nothing he could say.

The struggle for power has always been like this, and this is something that the elders like them cannot change. Zhu Mengyuan also saw his hesitation, with a hint of sarcasm on his face, "It seems that Third Uncle knows it clearly in his heart, so how should I give in?"

"One step back, one step back after another, when there is no more room for retreat, what should I do?"

Zhu Rongxing lowered his eyes, but before he could say anything, there was a knock on the office door.

"Come in," Zhu Mengyuan said, and then a secretary in a suit and tie hurried in. After handing the documents in his hand to Zhu Mengyuan, he leaned over and whispered something in Zhu Mengyuan's ear.

"Okay, okay," Zhu Mengyuan's face only turned red at first, until the secretary finished speaking, he laughed out of anger, with murderous eyes, "Third Uncle, take a good look at what the second brother did!"

Zhu Mengyuan used the remote control to turn on the TV in the office and tuned to a live news broadcast from a TV station.

Zhu Mengyuan suddenly stood up straight and looked at the TV screen in disbelief.

The war of public opinion is over, and what follows is Zhu Mengyong stabbing Zhu Mengyuan in the abdomen.

“Initiated a class action lawsuit by shareholders, accusing Daying Ocean’s management of concealing losses and improper related-party transactions, demanding compensation and promoting the reorganization of the board of directors”

This was the first attempt to force Zhu Mengyuan to abdicate.

"An internal staff member reported that Daying Marine Shipbuilding violated regulations, such as untreated sewage discharge, and requested the Busan City Government to conduct an investigation and impose fines."

This report is not serious, but at this juncture, it will force the Busan government to reduce its maintenance efforts for fear of the bankruptcy of Daying Marine.

"Daying Group has submitted relevant reports to the Ministry of Commerce in order to avoid the long review period caused by bankruptcy reorganization. We hope that Daying Ocean will accept friendly negotiations."

"Friendly negotiations?" Zhu Mengyong, who was in front of the TV, grabbed his phone and nearly dropped it. "Is one of the things he did a friendly negotiation?"

Zhu Rongxing's eyes trembled, and he stood up in a hurry, "Meng Yuan, this is a serious matter"

He paused and said, "Please be patient for now and don't get really angry. We will discuss this properly."

Zhu Mengyuan didn't say anything, and Zhu Rongxing didn't have time to wait for his response, so he hurried out the door and prepared to return to Seoul.

Zhu Mengyuan opened the document brought by his secretary with a gloomy look. This was not reported on the TV program, but was a secret stab by Zhu Mengyong.

Zhu Mengyong released a large amount of downward data on the shipping industry.

The Baltic Index plummeted and new ship orders halved.
The purpose is to further short Daying Ocean's stocks, depress the market value and reduce the acquisition cost. As the largest shareholder of Daying Ocean, Zhu Mengyuan's loss of interests is unimaginable.

A loyal executive rushed in, looking terrified.

"What did Zhu Mengyong do again?" Zhu Mengyuan asked without even raising his head.

"The group has acquired some of our outstanding bonds and bank debts. Some of the debts are due in March this year, and they have already refused to extend the payment in advance and demanded immediate repayment upon maturity."

"If we cannot repay immediately, we will have to work with rating agencies to downgrade our credit rating, triggering the bond default clause."

One cut after another, fast, accurate and ruthless.

Zhu Mengyong did a lot of preparation. Whether it was acquiring bonds and claims or collecting information, neither could be completed in a short period of time, but they all broke out on the same day.

"Anything else?" Zhu Mengyuan's expression calmed down.

"Not yet. Not yet."

"go out."

This looks like a regular merger, as expected.
The next step for Daying Group may be to purchase stocks in a dispersed manner in the secondary market, while trying its best to avoid triggering the 5% shareholding line, and gradually accumulate to a proportion close to the controlling stake.

It is also possible to use block trading platforms to take over the shares of larger shareholders that have been pledged and liquidated, thereby acquiring equity at a low cost.

But the biggest possibility is to launch a partial tender offer for small and medium-sized shareholders, promise to repurchase at a premium, disintegrate the alliance of shareholders, and encourage shareholders holding more shares.

At a time when Daying Ocean's stock price has hit rock bottom, a purchase at a premium would certainly attract many people.

"Zhu Mengyong, what is your next step?"

Not only Zhu Mengyuan, Li You is also paying attention to this matter.

After January, his work became much lighter, and related arrangements were proceeding in an orderly manner. He also had the leisure to watch the "fight between dragons and tigers" between the two brothers in the camp.

At present, Zhu Mengyong can be regarded as a 'dragon', but Zhu Mengyuan is definitely not a 'tiger'. The fight between the dragon and the tiger is about to turn into a fight between the fallen dog and the drowned dog.

"What else could it be?" Ding Qing lazily sat on the sofa opposite Li You, picking his nose with his little finger, "It's nothing more than shipping companies and shipbuilding companies."

"Joining forces with other shipping giants in the world to withdraw orders from Daying Ocean Shipbuilding, this will lead to further vacancy of Daying Ocean Shipyard and further depletion of cash flow."

As a former street boss, Ding Qing has put in a lot of effort to learn. Now he speaks very clearly, "When the working capital is almost exhausted, we will start to acquire Daying Ocean's core assets, high-level docks, and various shipbuilding patents.
Daying Ocean has to be sold, otherwise the funds will not be able to turn around.

The remaining useless assets will be divested to a third party, and Daying Ocean will be precisely dismantled instead of being acquired as a whole, which will further reduce the acquisition cost and avoid some debts. "

"I've been running around outside these days and have inquired about some things." Seeing that Li You was listening carefully, Ding Qing also sat up straight. "The big customers of Daying Ocean signed long-term transportation contracts.
It was agreed in the offer that if the transaction failed due to problems with Party B, that is, Daying Ocean, Daying Ocean would have to pay a large amount of compensation, increasing their rejection costs.

Moreover, Daying Ocean’s liquidity has long been insufficient, and it is very likely that it is using the port land use rights it has acquired in the past as a negotiation deposit, and if the transaction fails, it can directly exercise the pledge right.”

Li You raised his eyebrows. This was tantamount to mortgaging the land use rights of these ports to the other party.

"Daying Ocean is still holding on, waiting for payments from these customers to help them recover, if there are any problems with these orders."

Li You shook his head. Zhu Mengyong was pushing Daying Haiyang into a desperate situation of 'sell or die' through the three-dimensional stranglehold of finance, law and public opinion.

"Pity"

If it weren't for the financial crisis, Zhu Mengyong would have achieved great things.

(End of this chapter)