"Sorry," Chen Zhao said. "I'm a bit short on cash."
If his friend needed money, he would take it out even if it was a loss and he knew that he couldn't pay it back.
Even if Guret wanted to borrow money from him, Chen Zhao would lend it to him.
Because they'd been in close contact before, they knew each other very well.
This way, Chen Zhao could evaluate if he could get his money back or how much he could get back.
However, Chen Zhao didn't have much contact with Nafa Twain.
Why should he lend him money?
Moreover, Nafa Twain was an A-list celebrity. If he wanted money, he could definitely get it.
For example, he could get a mortgage from the bank. Not only did he have the property, but his reputation was also very valuable.
The bank was more than happy to lend money to Nafa Twain, as long as he was willing to pay a higher interest.
Disappointment appeared in Nafa Twain's eyes. Regardless of whether Chen Zhao was telling the truth or lying, their conversation had reached an impasse.
"I can use the shares of Marina's Restaurant as a mortgage," Nafa Twain said.
Chen Zhao frowned and fell into deep thought.
Firstly, Nafa Twain only had 30% of Marina's Restaurant's shares. It wasn't worth $30 million.
However, this was based on the market price. In terms of industrial value and annual income, Marina's Restaurant indeed had a lot of potential.
However, 30% of the shares was still not worth $30 million to Nafa Twain.
If 30% of the shares could be mortgaged for $30 million, then Marina's Restaurant would be worth $100 million. This was obviously too high.
Of course, normally, Nafa Twain's reputation was worth $30 million.
If he could only buy 30% of the shares at a slightly higher price than the market price and control 100% of the shares, it would be worth it. However, $30 million was really too high.
"I need to think about it," Chen Zhao said.
"Chen, I'm really tight right now. I need to get the money as soon as possible."
"Twain, I also want it as soon as possible, but even so, I still need to raise money. $30 million isn't a small amount. I need to see if the bank can lend me money."
"When can you give me an answer as soon as possible?"
"One day. Give me one day to think about it."
"Okay." Nafa Twain nodded helplessly. "I won't disturb you anymore. Enjoy your meal."
After returning to the room, Chen Zhao acted like nothing had happened.
However, when they were talking just now, the people inside also heard their conversation from outside the door.
Of course, Zhuo Xiao and Wang He did not ask about this.
After all, this had nothing to do with them, and it was likely to involve some trade secrets.
At the dining table, Zhuo Xiao and Wang He behaved very politely.
The four of them only talked about Hollywood matters.
After the meal, Wang He and Zhuo Xiao politely bade farewell to the Chen family of three.
Only then did Fali say, "Chen, Nafa Twain wants to borrow money from you?"
"Yes, but I need to ask a professional," Chen Zhao said.
Thirty million dollars was not a small amount.
Even if it was three million, he would calculate it again and again, let alone thirty million.
"Hi, Mr. Andrews. I'm Chen Zhao."
"Mr. Chen, how can I help you?"
"Do you remember Marina's?"
"I remember that you have 70% shares of Marina Restaurant. Do you have any plans? Or are you going to use it as a mortgage? "
Marina Restaurant's revenue was very high. Its annual turnover was more than 12 million, and its net profit was more than six million. Moreover, it was not a new business, but a mature one. According to the calculation of unlisted businesses, the current market value of the business could be calculated by multiplying the annual net income by ten years, then subtracting the ten years and multiplying the annual depreciation of the dollar by three percent.
For most companies or businesses, if they were listed, their annual market value could not increase faster than the depreciation of the dollar, which would be a loss. Unlisted companies could not exceed the depreciation of the dollar, which would also be a loss.
In short, the listed companies depended on the stock price, while the unlisted ones depended on their revenue.
These two were important standards for banks to evaluate the quality of their businesses.
If Chen Zhao used 70% of Marina Restaurant's shares as a mortgage, the bank would be able to borrow 1.5 to 2 times the actual value.
In short, banks were not afraid of borrowing money, but they were afraid of paying it back too quickly.
The more money they owed, the higher the interest they would receive.
"No, I want to know the current value of the other 30% of Marina Restaurant's shares."
"Huh? You mean the 30% shares of Nafa Twain's restaurant? "
"Yes."
"The shares have been mortgaged many times … Mr. Chen, does Nafa Twain want to use the shares as a mortgage to borrow money from you?"
"Yes, you're saying that the shares have been mortgaged many times?"
Usually, the first mortgage was for a high-quality business, while multiple mortgages required multiple restructuring. After each restructuring, the bank would borrow less and less money, and the interest would become higher and higher. In the end, the borrower would not be able to pay back the money.
Moreover, businesses that had already been mortgaged couldn't be traded, let alone repeatedly.
In other words, even if Nafa Twain mortgaged 30% of the restaurant's shares to Chen Zhao, if Nafa Twain's capital chain broke, the bank would have priority. Chen Zhao wouldn't be able to do anything then. At least in terms of legal means, Chen Zhao wouldn't be able to beat the bank.
Of course, if the shares ended up in the bank's hands, it would be a good thing.
The bank would definitely sell it to Chen Zhao first based on business principles. This was also because Chen Zhao's shares had clear ownership and the bank needed funds.
Another possibility was that the bank would find a professional manager to take over the business and run it for profit.
However, usually, when an individual had absolute shares, the bank would not find a professional manager because Chen Zhao had absolute decision-making power. Even a stock god would not have the right to order Chen Zhao around.
"How much does Nafa Twain owe the bank?"
"230 million dollars."
Chen Zhao gasped. "How does he owe so much money?"
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
