Tokyo: Rabbit Officer and Her Evil Partner-Chapter 764 - 465: Risk Sharing

He set down the yogurt, interlaced his fingers, and explained in detail: "The essence is selling bad assets to foreign capital..."

"I’ve already chosen the target company, Tokyo Construction Industrial Corporation is quite good, a typical small and medium-sized construction enterprise, established in 1978, mainly engaged in office building construction and leasing, now gradually unable to keep up with the changes of the times."

"In 1989, the company obtained a loan of 500 million yen from Sumitomo Bank to purchase a 1200 square meter piece of land and office building in Tokyo Shinagawa District, using the land and building as mortgage collateral, with an annual interest rate of 7.2% and a term of 10 years. Now, due to a 61% plummet in Tokyo’s land prices, the valuation of the office building has shrunk from the bubble period of 1.2 billion yen to 800 million yen, leading to a break in the company’s funding chain, and it has failed to pay loan interest for three consecutive months, forming bad debt."

"The holder of the debt is Sumitomo Bank, whose bad debt ratio in the construction industry has reached 4.8%. Due to the impact of Sanwa Credit Vault’s bankruptcy, they urgently need to strip away risky assets to meet regulatory requirements. The book value of this debt is 500 million yen, with accumulated overdue interest penalties of 23 million yen, and the recovery rate shouldn’t exceed 30%... What we need to do is buy this debt from them at a low price."

Fushimi Roku clenched his five fingers into a fist and then relaxed them, continuing with a persuasive tone: "You know, foreign capital is very interested in land debt rights..."

A complete traitor’s face, speaking these words with no psychological burden.

Sazaki Gen interrupted, "Where did you get all these numbers from?"

Fushimi Roku couldn’t exactly say he copied them from an economic news newspaper, so he had to falsely claim he has connections in the Financial Bureau and can access some of the detailed data from internal channels.

Sazaki Gen was half-believing and signaled for Fushimi Roku to continue: "And the buyer? What if we buy it and can’t sell it, won’t it be stuck in our hands?"

"It won’t be," Fushimi Roku shook his head repeatedly, looking very confident: "Have you heard of East Asia Revival Capital?"

Sazaki Gen shook his head, he’s actually not very skilled at business, completely forced into it right now. The main income for the Inakawa Association is still gray and black production, wanting to launder is a long and arduous journey.

Fushimi Roku continued explaining: "The company was jointly established by a Hong Kong offshore company and a local Tokyo law firm. On the surface, Japanese partners hold 51% of the shares, but it is actually controlled by a United States hedge fund, avoiding the ’Anti-Monopoly Act’s restrictions on foreign acquisitions of more than 10% of debt."

He had dealings with this company in his previous life; it belongs to a multinational corporation that not only acquires debts in Japan but also in China, everywhere controlling shares, acquiring assets, and monopolizing through shell companies.

It’s not just Japan; in 1991, in East Asia, banks were still in the initial stages of dealing with bad debts and lacked professional institutions. Many foreign capitals used covert structures to purchase debts at low prices, thus invading foreign markets, manipulating companies and financial capital.

Fushimi Roku is 100% sure this multinational company will never let go of this piece of fat meat.

He has already thought of the implementation details: "First, through the Bureau of Legal Affairs ’Real Estate Register Transcript’ inquiry, confirm that the collateral has no other priority debts, with the rights ranked first;"

"Second, using ’cash full payment + 72-hour delivery’ as a bargaining chip, propose an acquisition at 20% face value, which is 1 billion yen. Now the market liquidity is exhausted; for such bad debts, if you want to realize quickly, the price will be pressed to the freezing point."

"Remember, they’re the ones asking us to buy, not we who must buy."

"Next, sign the ’Debt Transfer Agreement’, stipulate that if registration is not completed within 5 days, pay a penalty of 5 million yen. Submit the ’Debt Transfer Registration Application’, including identity verification of both parties, original loan contract, transfer agreement, and pay the registration tax to the Bureau of Legal Affairs."

"Finally, obtain the ’Debt Transfer Registration Certificate’ to become a legitimate creditor. Synchronize and sign the ’Debt Resale Letter of Intent’ with Goldman Sachs Tokyo Branch, transferring at a bottom price of 3 billion yen; if the price can be increased, do so as much as possible."

Fushimi Roku’s fingers twisted around, as if grasping unseen money: "With a single resale like this, just by handling it, there’s 200 million oil; if fast enough, the funds can return within a week..."

He paused, smiling seemingly unamused: "Doesn’t it make more money than you do with casinos and selling drugs?"

Sazaki Gen was indeed tempted; after all, this is 200 million yen, and it’s legitimate funds not needing laundering, enough to make him jealous.

Previously, not to mention 200 million, even if 1 billion were placed in front of him, Sazaki Gen wouldn’t blink an eye.

But now, all of Inakawa Association relies on him for sustenance, and Ishii Takamasa is such a disengaged guy. Every day, when he opens his eyes, he’s thinking about where to get money.

Sumiyoshi Association is pressing tight, the Police Department is fighting gangs daily, claiming to want to launder white, yet after half a year of effort, they remain this sorry sight. If his subordinates get into trouble, there will be family compensation to pay, police stations to bribe...Where does the money come from?

He can only think of ways to expand sources!

Now there’s a way to earn money by starting a company, and it’s a violent profit of 200 million yen a week. Sazaki Gen couldn’t remain undistracted.

Fortunately, he still maintained his rationality, asking: "Isn’t doing this illegal?"

Fushimi Roku smiled slightly: "It will be illegal in a few years, but right now, not many are doing it this way; it’s just a matter of whether you’re brave enough to be the first to eat the crab."

Sazaki Gen hesitated momentarily, setting down the plan: "Let me consider it first."

Fushimi Roku said nothing more, packed up the plan, and stood up, saying: "Then I’ll go find someone else."

Sazaki Gen grabbed Fushimi Roku, not with much strength, but Fushimi Roku stopped anyway. He looked up and asked: "Tell me honestly, are you short of money recently?"

Fushimi Roku was silent for a moment, then honestly said: "Yes, I’ve been wanting to buy a house recently, but I’m short on money."

Sazaki Gen signaled him to sit down again and said: "This is your idea, your plan, I can’t just invest money and seize your business, right?"

As he spoke, he bent down and pulled a loan contract from under the coffee table: "How about this, if Mr. Fushimi lacks capital, I have a loan business here... We’re all familiar, so I won’t charge you interest, just a one-time loan of 50 million yen, coincidentally I’ll also invest 50 million yen, we’ll collaborate, and if we earn, we’ll split it fifty-fifty, how about that?"

Fushimi Roku understood, Sazaki Gen is planning to share the risks, involve him in the venture.

He’s a civil servant, can’t become a deadbeat, nor collude with a third party for scams. Moreover, these 50 million yen can’t be withdrawn as real funds, so there’s no possibility of running off with the money.

If the business loses, Sazaki Gen can find ways to recover the 50 million yen principal from him.

Fushimi Roku knew well, if he didn’t sign, this business would likely be scrapped; Sazaki Gen certainly wouldn’t be at ease. To give his business partner some confidence, Fushimi Roku pondered for a while and decided to go for it, signing the loan contract.

Both exchanged smiles, shook hands, and considered the agreement reached.

...

While Fushimi Roku was busy making money, Minamoto Tamako was at home watching TV tapes.

She was engrossed, the famous detective had gathered all clues, summoned everyone around the crime scene, suddenly pointed a finger saying ’you’re the real murderer’, then slowly explained the reasoning...

At this time, the living room door was banging; someone was knocking outside.

The benefit of watching tapes is being able to pause anytime; Minamoto Tamako pressed the pause button, feeling very anxious, wondering who would come to disturb at this time... If it was Mr. Fushimi, he would’ve used a key to directly enter.

"Coming, coming, who is it?"

Minamoto Tamako opened the door and was almost blinded.

A bunch of reporters were standing outside the door, cameras like long guns and cannons aimed at her face, shutters continuously clicking, flashlights continuously flickering.

Reporters fired questions:

"Detective Gen, what’s your view on the Yakai Mutsumi’s husband murder case?"

"Detective Gen, are you helping the suspect because you’re also a woman?"

"Is Detective Gen also a feminist? What’s your opinion on Yakai Mutsumi’s sentence?"

...

Minamoto Tamako had to cover her eyes, face all puzzled, asked: "Eh eh eh?! What’s going on!"