RBCT Chapter 26 Joint Claims
Chapter 26 Joint Claims
Kiryu Yaya added:
"Daimaru, Hankyu, New Hankyu Hotel, Osaka Royal Hotel, several food companies and banquet suppliers. Shiraishi Refrigeration is one of the few companies in downtown Osaka that can simultaneously handle frozen storage, refrigerated sorting, and low-temperature distribution within the city."
"The location of Dojima Cold Storage is very special. It is very close to the hotel and department store clusters in Kitashinchi, Umeda, and Nakanoshima. For these customers, Shiraishi Refrigeration is not just any warehouse, but a key node in the cold chain supply."
He raised his head.
"In other words, Shiraishi Refrigeration is actually one of the leading cold chain suppliers in the Osaka area."
Takeshi Iwakura's finger stopped at the edge of the document page.
Kiryu Yaya didn't stop.
"If it goes bankrupt, or if Kansai Urban Development takes control and demolishes the Dojima Cold Storage, the impact will not be limited to Shiraishi Refrigeration itself."
"Several hotels will be immediately affected."
"Especially the Osaka Royal Hotel."
As he said this, Masakazu Yamada seemed to have thought of something and suddenly looked up.
Kiryu Yaya released another document.
"I have checked the current debt ledger of the Osaka branch. The Osaka Royal Hotel underwent renovations to its banquet hall and guest rooms last year, and the main financing bank was our Mitsubishi Bank. The outstanding balance of the financing is still 1.8 billion yen."
The expressions on the faces of the people in the meeting room finally changed.
Iwakura Tsuyoshi finally spoke:
"Was that loan for the Osaka Royal Hotel the renovation financing done by the Second Sales Department last year?"
"Yes."
Kiryu Yaya nodded.
"The outstanding balance is 1.83 billion. According to the repayment plan, the next two years will be the period with the greatest cash flow pressure."
The air in the meeting room noticeably thickened.
Kiryu Yaya's voice was still not loud.
"The Osaka Royal Hotel is the largest customer of Shiraishi Refrigeration in the hotel category in terms of transaction volume. Dojima Cold Storage has long been responsible for banquet ingredients, frozen seafood, some dairy products, and low-temperature storage."
"If Whitestone Refrigeration suddenly stops operating, the hotel certainly won't go bankrupt immediately. But switching cold chains isn't as simple as just changing suppliers. New warehousing, new delivery routes, new temperature records, and new billing cycles all take time."
"And after May, it is the peak season for banquets and weddings."
He paused.
"The impact on hotel revenue will ultimately be reflected in the security of our claims against the hotels."
No one spoke in the meeting room.
Even Iwakura Tsuyoshi fell silent.
Kiryu Yaya moved the client list forward a little.
"This is just the largest one."
"Among Shiraishi Refrigeration's other major clients are also loan recipients of our Osaka branch. Department store food divisions, banquet suppliers, and hotel renovation financing, the total outstanding debt exceeds two billion yen."
"Therefore, this 500 million yuan financing is not only about Whitestone Refrigeration."
"It also concerns the safety of several existing debts held by Mitsubishi Bank."
After those words were spoken, the conference room became so quiet that the sound of the air conditioner blowing could be heard.
The way the section chiefs looked at Kiryu Yaya finally changed noticeably.
They originally thought that this newcomer was already quite good, as he could read the accounts and spot suspicious points.
But things are different now.
He's not just focusing on one company.
He integrated Shiraishi Refrigeration into Osaka's supply chain, and then integrated that supply chain into Mitsubishi Bank's own debt portfolio.
This perspective is invaluable.
Iwakura Tsuyoshi looked down at the client list.
A moment later, he reached out and took the document containing the debt information of the Osaka Royal Hotel.
I turned two pages.
He didn't say anything more.
At this moment, Kiyomasa Ogaki raised his head.
The finance minister, who was nearing retirement, seemed to finally snap out of his reverie amidst his teacup and documents, and glanced at Kiryu Yaya.
There was a hint of surprise in his eyes.
They probably didn't expect a newcomer to say things this way.
Kiryu Yaya continued:
"Of course, this does not mean we should lend money unconditionally."
"On the contrary, this money must not be deposited directly into Whitestone Refrigeration's account."
He took out the spreadsheet he had prepared the night before.
"My suggestion is to treat the entire 500 million yen as a corporate loan for Shiraishi Refrigeration Co., Ltd. This case should be split into a long-term corporate loan for Shiraishi Refrigeration and a bridge loan for Seiji Shiraishi's personal equity."
"First, 90 million yen will be directly paid to Osaka Credit Bank, and on the same day, the first priority mortgage right will be cancelled, and Mitsubishi Bank will set the first priority mortgage right for Dojima Cold Storage."
"Secondly, the funds involving Takao Shiraishi's 28% stake will not go through Shiraishi Refrigerator's account. Instead, they will be handled jointly by Mitsubishi Bank, Judicial Scrivener, Daiwa Securities Group financing companies, Takao Shiraishi himself, and President Seiji Shiraishi. The release of the pledge, the confirmation of the share transfer, and the change of ownership in the register of shareholders must all be completed on the same day."
"Third, the full text of the 30 million loan agreement for the Kansai City Development must be obtained first. If there are any clauses regarding pre-sale rights, delegation of decision-making rights, or high penalties for breach of contract, these must be terminated before the funds are executed, and written proof must be obtained."
"Fourth, the shares acquired or secured by Seiji Shiraishi should be pledged or subject to a resolution restriction commitment by Mitsubishi Bank, and shall not be transferred to external developers at least during the repayment period of this financing."
"Fifth, Morikawa Sangyo, the employee stock ownership plan, and major hotel customers must provide written confirmation. The former must confirm that it will not cooperate with malicious control by external capital, and the latter must confirm that the transaction will continue on the premise that Shiraishi Refrigeration maintains stable operations."
After he finished speaking, the meeting room remained quiet.
After a moment, Iwakura slowly spoke:
"What if any of these things can't be done?"
Kiryu Yaya did not hesitate.
"Cease execution immediately."
"Even if Whitestone Refrigeration loses control as a result?"
"Yes."
Kiryu Yaya said:
"Banks can bear the risks that arise from their business decisions, but they cannot bear the risks of losing control of procedures."
Iwakura glanced at him for a few seconds.
A slight change finally appeared on that perpetually tense face:
"That sounds like something someone in a debt management course would say."
Kiryu Yaya bowed slightly but did not reply.
Matsumoto Takahiro finally put down his teacup.
He first looked at Kiyomasa Ogaki.
"Boss Ogaki."
Kiyomasa Ogaki slowly closed the folder.
He didn't answer immediately, but instead wiped his glasses with a handkerchief and said only one sentence:
"The specific risk assessment will be based on Section Chief Iwakura's opinion."
He paused.
"The financing department has no further comments."
Matsumoto Takahiro offered no comment, but instead turned to Iwakura Tsuyoshi.
"Section Chief Iwakura, are there any further objections?"
Iwakura did not answer immediately.
He went through the documents again and glanced at the execution conditions listed by Kiryu Yaya.
Finally, he placed the execution time backwards table on the table.
"The risks remain very high."
He said.
"But if it is treated as a conditional closed-end financing, and the implementation is stopped if any one of the conditions is not met, I will no longer insist on opposing it."
Takahiro Matsumoto nodded.
Then he looked at both sides of the conference table.
No one spoke again.
Takahiro Matsumoto closed the folder:
"The joint financing proposal between Shiraishi Refrigeration and Shiraishi Seiji is approved in principle."
"The total exposure is within 500 million yen. Among them, the corporate long-term financing of 180 million yen for Shiraishi Refrigeration Co., Ltd. has a term of ten years. The bridge loan of 320 million yen for personal equity of Shiraishi Seiji has a term of eighteen months. The two financings are executed simultaneously and are mutually conditional upon termination."
"That's it, let's break up the meeting!"