[pannchoa] Louis Vuitton reportedly pulls out from YG's investors. YG to pay back 67 billion won

[Pandaa]

Louis Vuitton reportedly pulls out from YG's investors. YG to pay back 67 billion won

YG Entertainment is reportedly preparing to repay the 67 billion won investment from Louis Vuitton Moe Hennessy (LVMH).

According to sources, YG is preparing to make the payment using their own cash flow as they're having difficulties converting their own stock due to the recent stock price plunge. The reason for this difficulty is because of YG's declining stock price of over 40% in 6 months as a result of the ongoing prostitution scandal and tax investigations involving its former executive, Yang Hyun Suk as well as 'Burning Sun gate'involving artist and Big Bang member 'Seungri.'

YG Entertainment received a total of 61.15 billion won from Louis Vuitton in October 2014 with a promise to convert the shares to stock or cash 5 years later. The 135,99688 shares will be converted at a price of 44,400 won. If LVMH chooses not to convert the shares and requests a repayment, YG will have to repay 67 billion won plus 2% annual interest.


According to an investment banking (IB) expert on the 11th, "YG Entertainment announced that they're raising funds for LVMH's convertible preferred stock and have reportedly began the process. YG Entertainment is reported to be looking for a redemption request and not a stock conversion after an official request from Louis Vuitton due to the stock price decline."

He stated, "even if Louis Vuitton executives decided against redemption and went for a conversion instead with a request for damages, YG will nonetheless be subject to a felony penalty at that point and as a result end up having to repay the investment anyway so this repayment requirement was only a matter of time."

According to the IB official, "YG has been struggling to deal with the investment ever since the beginning of the year when 'Burning Sun' scandal broke. As a result of the constant news in the media and the declining stock price, Louis Vuitton sent YG Entertainment a preliminary letter requesting a repayment if the situation doesn't improve. The actual official repayment request is expected to be sent to YG Entertainment by the end of July or August as is customary."

YG Entertainment has stated that even though they're required to pay back this investment this will not affect the company's financial condition.

Cr: allkpop

original post: here

1. Congrats!

2. The amount is quite similar to Bang Sihyuk's total sales figureㅋㅋ

3. Let's start collecting interest too

4. It suddenly doesn't feel like they're untouchable anymoreㅋㅋㅋㅋ I wonder how much he'll be able to pay himself out of this from nowㅋㅋㅋㅋ

5. Let's drop even more, let's receive the punishment for your crimes

6. All his money is earned in such a meaningless way, it's like bitcoin

7. ㅋㅋㅋㅋㅋㅋ

8. They're always bragging about how much money they have everyday, but now it's time for payback

9. Louis Vuiddong (t/n: word play with poop) really stepped in poop with them, let's empty all their money

10. Let's reveal everything else they have faster

source: https://pann-choa.blogspot.com/2019/07/theqoo-collapse-of-stocks-yg-owes-louis.html

 

[Kinky]

Not good. What will happen to BlackPink?

 

[lisssie]

whew thats a ton of money

 

[Joker]

 

[Pyron]

Maybe they stop focusing on being a club mafia and start paying attention to their acts more like a real music/entertainment company.

 

[sickwithsin]

YG Entertainment has stated that even though they're required to pay back this investment this will not affect the company's financial condition.

But what if other investors start requesting repayment too?

 

[vitaminplus]

Thats 50m in euro damn

 

[crazykuroneko]

thank god LVMH still has brains

 

[Pepper]

It's what they deserve.

 

[anh]

oh boy

 

[Happy]

opcorn:

 

[Belkiss]

It's what yakuza g deserves

 

[Hormones]

It's what yakuza g deserves

LMAOOOOOOOOO I'M DEAD

 

[Lilac]

Whew that's a lot of money

 

[Yeddong]

That's the normal price of a regular football player in Europe.

 

[AegyoInTheStreets]

But what if other investors start requesting repayment too?

YGE doesn't want to admit this is a problem. Their current cash on hand is 42.11B won, they're short 25B and will need to either sell assets or pull out of investments to pay it back.

Also of note, yge operating profit for 2018 was 9b won so theyre about to lose over 7k what they made last year.

 

[paradise.mp3]

Time for that full album BlackPink

 

[Astro]

Can they even afford that

 

[sickwithsin]

YGE doesn't want to admit this is a problem. Their current cash on hand is 42.11B won, they're short 25B and will need to either sell assets or pull out of investments to pay it back.

Also of note, yge operating profit for 2018 was 9b won so theyre about to lose over 7k what they made last year.

The Yangs saw the writing on the wall, and ran away before the shit hit the fan ... How surprising.

 

[AegyoInTheStreets]

The Yangs saw the writing on the wall, and ran away before the shit hit the fan ... How surprising.

They didnt run away, they simply moved into the shadows. They still hold their stocks and influence over the company. Dont consider the new ceo, the CFO whos been with the company for 19 years to be anything but a puppet.