Park Junwan did not answer, so Xin Guoquan replied:
"Right now, DS Heavy Industries can't even provide 200 billion, let alone 2 trillion. DS Heavy Industries recently acquired West Aviation, and further investment is needed to get West Aviation back on track. Therefore, I'm afraid they won't be able to support DS Energy."
Kim Dong-seok said:
"Actually, DS Energy's problems aren't just ours. DS Energy currently supplies DS Chemical with refined oil at very favorable prices. If we can't supply them, DS Energy's profitability will also be affected, right?"
Kim Dong-seok said to DS Chemical President Song In-seok.
Song In-seok agreed with Kim Dong-seok's statement, but he was not in a position to answer and instead looked at Park Jun-wan.
"I've said everything I need to say. Without further support, DS Energy will probably have no choice but to sell off its assets."
After saying that, Kim Dong-seok sat back in his seat.
Xin Guoquan responded:
"DS Heavy Industries really can't come up with the money, even if DS Energy sells off its assets."
If DS Energy really wants to sell its assets, Park Jun-wan can certainly order it not to touch the Brazilian project, but this cannot fundamentally solve the problem.
Park Junwan was caught in a dilemma.
At this moment, Zheng Zanyong stood up.
"President, I have an idea."
Park Junwan looked at Zheng Zanyong.
"What's your idea?"
"Using the Full Option (holding assets for sale) approach, we can raise the required $3 trillion."
"Full Option?"
"The group can no longer invest in DS Energy. Therefore, it must find a way to source funding from outside sources."
Park Junwan certainly knew that DS Pharmaceuticals or DS Communications had the ability to do so, but he couldn't bring himself to say it.
Because the clinical trials of the vaccine have not yet been completed, DS Pharmaceuticals has no time to take care of other things at this time.
DS Communications is under the direct control of Park Jin Hyuk. Now the relationship between him and his son has become like fire and water, so his self-esteem does not allow him to bow his head and seek support from Park Jin Hyuk.
So he asked Zheng Zanyong:
“How do we do this?”
"DS Energy will issue bonds subject to the full option. However, DS Energy's full option may not be attractive enough, so DS Heavy Industries can be made a condition."
"DS Energy is issuing bonds overseas, but it's conditional on DS Heavy Industries?"
"This will provide sufficient guarantees for bond issuance, thereby greatly increasing the success rate of bond issuance."
"You're being more specific."
Park Junwan demanded.
So, Zheng Zan signaled his men to display the slides, and then continued:
"It's no longer possible to increase DS Energy's capital with compensation. The only option left is to issue bonds and borrow money from outside sources, but with the current economic downturn, borrowing money might not be easy."
Park Junwan said:
"So DS Heavy Industries is a condition for the Full Option?"
"Yes, this is equivalent to DS Heavy Industries providing a guarantee for DS Energy."
"How is it different from a normal financial guarantee?"
"The effect is even stronger. This means they can even sell DS Heavy Industries' shares to repay the debt. In other words, regardless of whether DS Energy can be revived, DS Heavy Industries will be responsible for its debts..."
At the end of his speech, Zheng Zanyong's voice involuntarily became lower. He knew what DS Heavy Industries meant to Park Junwan.
"This solution sounds good, both for the creditors and for us..."
There was a hint of sarcasm in Park Jun-wan's tone, and Zheng Zanyong didn't know how to respond.
Park Junwan added:
"The question now is, on whom should the Full Option be conditional, right?"
Park Jin Hyuk knew he had to speak.
He turned on the microphone in front of him and said:
"I've considered President Zheng's suggestion this way. DS Energy is currently in a critical situation. DS Group has provided support several times, but further support is no longer possible. If DS Energy's survival is crucial to the future of DS Group, then we should do everything we can to help it. But I don't think so."
Park Jin Hyuk continued:
"We can't let the stability of the entire group be affected by one company, DS Energy. Right now, it's only affecting DS Heavy Industries, but if things continue like this, it could impact DS Communications and DS Pharmaceuticals... Therefore, I believe it's wise to immediately halt support for DS Energy."
After saying that, Park Jin Hyuk glanced at Park Jun Wan.
Park Junwan said:
"You mean, we should just watch DS Energy go bankrupt?"
"I don't want it to go bankrupt either. If DS Energy goes bankrupt, the huge amount of money invested will not be recovered, and it will also have a huge impact on DS Heavy Industries and DS Chemicals. How can I want it to go bankrupt?"
"Don't you mean to let it die?"
"It seems that you are not satisfied with the suggestions made by President Zheng?"
Park Jin Hyuk asked back.
"Did I say I wasn't satisfied?"
"You say it's good, but you don't actually agree with his plan."
Everyone noticed that the meeting was no longer led by Park Jun-wan alone, but by Park Jun-wan and Park Jin-hyuk.
There is a huge gap between the performance of Park Jin Hyuk's camp and Park Jun Wan's camp, and the balance of power is constantly tilting towards Park Jin Hyuk's side.
Park Jin Hyuk said:
“I suggest that DS Energy be managed separately.”
"What do you mean by that?"
"I'm saying we should stop supporting it and let the bondholders find a solution."
“How is this different from bankruptcy reorganization?”
“I think this is the best approach at this point.”
"...Didn't President Zheng propose the Full Option approach? President Zheng, could you elaborate on that?"
Park Junwan interrupted Park Jinhyuk directly.
DS Group has never had a precedent of bankruptcy reorganization, and Park Junwan absolutely cannot accept this method.
Zheng Zanyong continued:
"The current share price of DS Heavy Industries is over 80,000 yuan, and DS Energy is around 100,000 yuan. Based on this, we can develop a plan with two safety valves."
Zheng Zanyong glanced at the chairman and could see that Park Junwan seemed very interested.
"The first safety valve is to trigger the Full Option if DS Energy's stock price drops 30%. Because of the drop in oil prices, DS Energy's stock price has already fallen from over 100,000 yuan to 80,000 yuan. However, if oil prices rise, DS Energy's stock price will also rise. Therefore, a 30% drop is unlikely to occur."
Park Junwan nodded.
"So what's the second safety valve?"
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