Extraordinary Genius - Chapter 312 – Sony’s Retaliation (Part Two)
Heitaro Nakajima was in cloud nine this period of time. AIWA latest product was introduced to the market and had performed well in the market. It had occupied 40% of the domestic market share, and the sales in the overseas market were also doing very well. The market share was increasing day by day.
This was especially true for the Chinese market. The Hong Kong Aiwa company had reported to him that Sony was almost non-existent there. In Taiwan, Macau and Hong Kong, AIWA brand Walkman were the number one Walkman.
Heitaro Nakajima believes that when he introduces a better-quality Walkman later, the company will reach a higher level! This year sales will surely reach 10 million units! This was also his goal!
Next year, AIWA will introduce a better Walkman. He believes that Walkman will become a classic and will be recorded in the history. He wants AIWA Walkman to overtake Sony and other brands!
When that happens, he can be like Sony. Using similar quality products as others to achieve higher sales and sell at higher prices. This way, he can gain more profits!
Maybe next year, he can repay all of AIWA’s debts. After all, AIWA’s profit was about 300 yen for every Walkman sold. Because of AIWA setting up multiple factories around the world, their total debts were over 8 billion yen. Their main creditors were the banks and Sony.
Once AIWA’s production and sales reach a higher level, AIWA will be the market leader!
Heitaro Nakajima thought that he would need another 4 to 5 years to reach this target. After Sony had sold AIWA shares, he thought it he might need a longer time to repay all his debts. But now, he could achieve all his goals within 3 years!
Hahaha, Sony, Norio Ohga, you will regret selling AIWA!
“President, there are a few people from the banks here. From their attitude, they seem to be here for the loan repayments.”
Huh? Collecting debts? It was still within the loan period and why were they here to collect the debts? I had been paying the interest every month. Although two years ago, I had defaulted a few payments, this year, I had been paying the banks diligently. Why were they here for?
“Bring them to the conference room.”
Looking at those people, Heitaro Nakajima had a bad feeling. Why were all AIWA’s creditors here? What do they want?
“What brings all of you here to AIWA today?” Heitaro Nakajima sat down smiling.
“President Heitaro, I heard that AIWA’s sales have been doing well recently. Our bank is currently facing some financial difficulties. You should also know that the economy is not doing well. Can you repay AIWA’s debts earlier?” One bank representative asked.
Heitaro Nakajima said with a straight face: “Mr. Watanabe, what is the meaning of this? It is still not time for me to repay the loan. Why must I make the repayments earlier? I have been paying the interests every month.”
Heitaro Nakajima never expects all his creditors to come chasing for payments at once. AIWA was not still expanding, and if he repays his debts, the company will not have enough funds to operate, and AIWA will be finished.
“President Heitaro, we also have no choice. Can you at least make some partial payments, so I can answer to my bosses?”
“I’m afraid I cannot do that. According to the loan agreement, I can refuse to make any repayments now. All of you should know how my company did for the first half of this year. We had done really well. Based on the sales forecast, our Walkman sales should be exceeding more than 10 million units! If your banks have problems, I can promise you that I will repay all the loans next year. This shouldn’t be a problem, right? If you insist me on repaying the loans now, then AIWA will not have enough to repay you, and we will have cash flow problems. We will even have problems repaying the loans!”
The bank representatives looked at each other. Watanabe said after hesitating for a while: “President Heitaro, since you want to talk about the loan agreement, then we will talk about the agreement. In March, two years ago, your interest repayment was late by 3 days. In May of the same year, your interest repayment was late by 8 days. Last February, June and November, your interest repayments were all late. According to our contract, we have the right to ask you to repay the loans earlier. All the banks here are the same. If you refuse to repay the loans, then we will go to the courts and freeze your company’s account. We got the right to auction off all your company’s assets to repay your loans!”
Heitaro Nakajima stood up furiously: “What are all of you trying to do?”
Are these people crazy? Freeze the company’s account and seize the company’s assets? How much can these assets worth? Even if they sell off all the company’s assets, it can’t even repay all the loans. If they give AIWA 1 or 2 years’ time, AIWA would be able to repay everything, including the high interests. What these people are doing was to force AIWA to close down!
“Cough…. President Heitaro, we can do this last year, but do you know why we never do this? It was because your company’s major shareholder is Sony. But now, Sony had sold all your shares, and our banks also do not own any AIWA shares. How about this, if you are willing to use your company’s shares as collaterals or you are able to get a big corporation to act as your guarantor, we will not push you for repayments.”
Heitaro Nakajima’s eyes narrowed. He finally understood what was happening. These people saw AIWA was progressing well now and wanted to get a share of the profits.
Heitaro Nakajima suspects that all the bank representatives coming here today was planned. The one behind this must be Sony!
Sony will never be AIWA’s guarantor unless AIWA resells its shares to Sony. This way, Sony will regain control over AIWA, and Heitaro Nakajima will have lesser percentages. He will never accept this!
Right. AIWA still have a shareholder. A Chinese shareholder. He was also the controlling shareholder. Heitaro Nakajima must discuss with him about this matter.
“Please leave. I will consider what all of you suggested. I will get back to you all.” Heitaro Nakajima said.
“President Heitaro, please be fast, we can only give you 3 days. 3 days later, if you still cannot give us a satisfactory reply, then we are sorry!”
Heitaro Nakajima was fuming as those people leave.
“Hmmm… Okay. I know. How much were the debts to the banks? I am talking about USD. I can transfer a sum of money to AIWA. Part of the money can be used to repay the banks, and the rest will be invested in the company. Based on our agreement, you had failed as your role of President. I will not remove you from your position, but as a punishment, I will dilute your shares by 10%.”
“The total debt owed to the banks is 5 billion yen. Based on the current exchange rates, it is about 400 million USD.” Heitaro Nakajima said.
Even if his shares were dilatated by Feng Yu, he was still the second shareholder and the company’s president. It was better than letting those evil bankers getting AIWA shares. Heitaro Nakajima does not want to be controlled by Sony again too.
It was 400 million USD. Does Feng Yu even have so much cash?
“Fine. Tomorrow, come to Beijing with your lawyer to sign the contract. I will repay all the debts!”
Feng Yu was smiling when he said this. This was a great opportunity. He will be getting more AIWA shares. In 1 or 2 years’ time, these 3% shares will be giving him tens of million USD in profits!