In the previous life, the main reason why Peregrine was forced to liquidate was not only the depreciation of the currencies of Southeast Asian countries, which led to a significant impairment of the bonds issued in Southeast Asian countries, but also the failure to repay a US$260 million loan borrowed by the Indonesian Rubber Company, and the sudden deterioration of assets. , the Swiss Zurich Group and the First National Bank of Chicago suddenly withdrew their capital injection of US$225 million, and the First National Bank of Chicago suddenly canceled its credit line of US$60 million.
The wall fell and everyone pushed it!
Local banks such as HSBC, Standard Chartered Bank, Hang Seng Bank and Bank of China Group also added insult to injury and canceled their credit lines to Peregrine. As a result, Peregrine's financial situation suddenly deteriorated and Peregrine had no cash to repay maturing loans and bonds, and its business was forced to After the suspension, Peregrine failed to introduce new shareholders within three days to avoid wider financial turmoil and was forced to liquidate and repay debts by the Hong Kong Monetary Authority!
In a previous life, French National Bank Paribas (bnp) acquired Peregrine’s investment banking assets of nearly HK$300 million in Asia for more than US$6 million in cash, took over approximately 150 employees, and established BNP Peregrine, becoming the largest beneficiary.
Liang Zhongtao stayed on and became one of the two executive vice presidents. He made great contributions to BNP Peregrine's development of the mainland corporate financing market. Later, he seemed to have left BNP Peregrine.
Du William and others became banned from the Xiangjiang financial market and disappeared into the vast sea of people.
Sun Jian also had this plan some time ago, waiting for Peregrine to be forced to liquidate, but God's calculations are not as good as those of man!
Commander Dong doesn’t have to give him face, but when Leader Zhu speaks, he can’t continue to pretend to be stupid.
The butterfly effect was obvious, disrupting Sun Jian's investment plan.
htic injected US$408 million in capital, equivalent to HK$31.62 more cash on Peregrine's account, and business resumed. Even with a large amount of bad debt provisions, Peregrine's net assets per share rose instead of falling.
The crisis of forced liquidation of Peregrine was lifted, and institutional investors dared to buy Peregrine's shares.
Peregrine was almost forced to liquidate, and its largest creditor bank, the First National Bank of Chicago, also broke out in a cold sweat. In order to avoid greater losses, it cut off its arm and canceled the US$2,500 capital injection agreement and US$60 million. Now that htic has become the controlling shareholder and endorsed by the world's richest man, CEO Gust immediately announced the restoration of Peregrine's credit line of US$60 million. Local banks in Xiangjiang have also restored credit lines to Peregrine. .
Peregrine's credit crisis was resolved and the company's business resumed.
Peregrine was forced to liquidate in its previous life, not because the company's roots were rotten.
In August last year, Peregrine's market value reached a maximum of more than 11 billion Hong Kong dollars, and its stock price reached a maximum of 18.32 Hong Kong dollars. The company's half-year income reached 650 million Hong Kong dollars, and earnings per share were 1.08 Hong Kong dollars. It is a high-quality high-growth stock that has remained in Hong Kong for five consecutive years. The top five companies in terms of trading volume on the stock exchange.
In the past year of 1997, the Hang Seng Index rose and fell sharply, like a roller coaster. Peregrine's turnover reached more than HK$282 billion, and its securities trading volume accounted for 10.17% of the total trading volume of Hong Kong stocks, becoming the first in Hong Kong Stock Exchange's securities trading volume.
Except for Japan, in the emerging markets of Mainland China, Hong Kong, Taiwan and Southeast Asian countries, there is no investment bank that is as "homegrown" but truly international as Peregrine, and it has high hopes!
Peregrine was originally a role model for emerging market investment banks to follow. Liang Zhongtao and William Du were shrouded in various auras. The risky fixed-rate bond business was also called innovative business!
being targeted!
The Southeast Asian financial turmoil and the Southeast Asian financial crisis broke out one after another. Peregrine's most beautiful fixed-rate bond business became the hardest hit area. Management loopholes were exposed, and everyone pushed the wall down, accelerating death...
After htic took over Peregrine, Wang Dongming, Li Mingjun, Zheng Xin, Li Guocai and Gong Chao led the staff of the Human Resources Department, Equity Investment Department, Financial Management Department, and Supervision and Audit Department to audit Peregrine's balance sheet and investment products. Wait, Sun Jian also knows the core information of Peregrine, which is the power to control Peregrine.
Strategic investors do not have such qualifications.
In fact, Peregrine has four main assets.
The first is Kwong Sang Hong (Peregrine owns 63.34% of the equity). As of June 30, 1997, its net asset value was HK$2.8 billion, of which Peregrine accounted for HK$1.823 billion.
In order to pay off the debt, Peregrine sold 33.34% of its shares and is still the largest shareholder.
The second one is the securities, corporate finance and capital markets business. Despite the sharp decline in Hong Kong stocks, as of October 30, 1997, it made a profit of HK$456 million.
Third, in the asset management business, Peregrine holds US$450 million (approximately HK$3.486 billion) in assets.
In order to pay off the debt, US$450 million in assets have been transferred.
Fourth, the fixed-rate bond business and financial derivatives business used to account for nearly 60% of Peregrine’s turnover and income. Today, it is this business that has a large number of bad debts.
In order to carry out bond business in Indonesia, Du William and Li Shizhen violated the company's risk credit management system and illegally lent a bridge loan of US$2.6 to the Indonesian Rubber Company in July last year...
The first three major businesses have been busy for a year in vain!
What was really fatal was that the major banks added insult to injury, causing Peregrine's cash liquidity to suddenly dry up.
The biggest problem facing Peregrine's business is the Indonesian Rubber Company's US$260 million in bad loans and the continued impairment of fixed-rate bonds with a market value of more than HK$6 billion.
With a one-time withdrawal of HK$32.32 for bad debts, Peregrine broke his arm and traveled lightly!
Sun Jian used the power of the controlling shareholder to cut through the mess quickly and adjust the management of Peregrine!
Peregrine only has one boss: Sun Jian, Peregrine’s absolute authority!
Sun Jian, the legal person and chairman, was not in Xiangjiang, so he entrusted Vice Chairman Wang Dongming to handle the major matters of Peregrine.
CEO Liang Zhongtao is fully responsible for the daily work of Peregrine, and is in charge of the business in mainland China, Hong Kong and Taiwan; President William Du is mainly responsible for the European, American and Southeast Asian business, and General Manager Huang Yongcan is responsible for Peregrine’s banking business.
"I would like to tell all directors that Peregrine's crisis has not been completely resolved. Peregrine's overall work idea in the future is to clean up old accounts, shrink the front line, consolidate existing business scope, and prepare for two years of hard times. Peregrine International Investment Holdings Company, Peregrine Fixed Interest Bonds Co., Ltd. and Peregrine Derivatives Co., Ltd. continue to cash out red chip stocks, real estate stocks, bank stocks, securities stocks and fixed interest bonds to prepare cash for the opening of Peregrine Bank. I We promise that when Peregrine Bank opens, htic will deposit HK$1 billion and become the first corporate customer!"
Bang bang...
Liang Zhongtao took the lead in applauding and sighed in his heart that 1 billion Hong Kong dollars in cash is like pocket money to Chairman Sun.
Huang Yongcan smiled, feeling confident.
Now, during the crisis, operating Peregrine Bank is also a double-edged sword. By absorbing deposits from individuals and companies, Peregrine Investment Group will not be short of cash flow, but it will also face the problem of not being able to recoup its loans.
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