Chapter 867: Initiating the acquisition

As Xia Yu had expected, Philipp Brothers was besieged by investors, who were demanding their money back, even if they didn't want any returns, just the principal!

But with Philipp Brothers unable to even come up with the security deposit, where could it come up with the money for investors to claim back?

Therefore, the senior management, including Tendler Wells, was extremely busy. On the one hand, they constantly dealt with investors who came to the door, trying their best to appease their emotions; on the other hand, they were also clearing out investments with low returns in order to withdraw funds as much as possible.

As for projects with better investment prospects, they had not been liquidated yet.

Because Tendler Wells and the others knew very well that the company still had some value, but if they liquidated all projects, they would be hastening their own deaths and eliminating the possibility of a comeback, because they would lose all their value.

After all, the Philipp Brothers company was actually insolvent, and liquidating all assets at normal prices would not be enough to repay all debts. By that time, there would be nothing left but an empty shell and a group of employees waiting for their wages, so no one in their right mind would take over!

New York may lack certain things, but it is not short of financial talent.

The financial profession is the first profession that Americans aspire to, and there are too many middle and lower-level financial talents. The top elites may not worry about making a living, but the middle and lower levels are highly replaceable. Large and powerful financial institutions are the least short of middle and lower-level talent. As long as they send out a recruitment signal, there will be a flood of applicants!

While dealing with these matters, Philipp Brothers still did not give up hope. The directors frequently travelled to Wall Street, trying to find someone to take over.

Philip Brothers had a good reputation as a futures leader and had accumulated a lot of experience over the past 60 or 70 years. Of course, some institutions were interested, but no one dared to take the step without knowing the actual liabilities.

After all, Philip Brothers was worth something, but if the value was not enough to cover the debt, then taking it over would be a loss!

What's more, taking it over was not without risk. With the current market conditions in the futures market, taking it over would not be easy, and one could easily get dragged down if one was not careful.

Faced with this situation, many institutions have secretly promoted intelligence sharing, digging deeper and deeper into the bottom of the Philip Brothers company. At the same time, they have urged the investigation team to first calculate the assets of the Philip Brothers company in an attempt to obtain the most realistic business intelligence.

It was the seventh day!

With a complex of anticipation and trepidation, Kosta Philip once again entered the office building of the Federal Reserve and, after waiting for a few more minutes, met with Federal Reserve Chairman Paul Volcker.

'Mr. Volcker, I'm sorry to take up your time.'

Kester Philip said apologetically with a low profile.

Paul Volcker smiled and said, 'That's fine, I'm not busy!'

'Mr. Volcker, I wonder if there has been any result from the proposal you mentioned last time?'

Kester Philip was impatient and asked straight to the point, his eyes full of anxiety.

Three days ago, he came to the Federal Reserve and also met Paul Volcker, hoping to get the help of the Federal Reserve to get the Philip Brothers Company through the crisis.

At that time, Paul Volcker did not give a clear answer, but said that he could propose it to the committee and give him a reply later.

However, there has been no result in the past few days, and today is the last day. Kester Philip is of course anxious, so he visited again.

Paul Volcker looked thoughtful and looked at Kester Philip's hopeful eyes.

He shook his head slowly, and as Kester Philip's gaze gradually dimmed, he said, 'I'm sorry, Mr. Philip, but the proposal has not been approved.'

Kester Philip forced a smile, pursed his lips, and asked in a desperate voice, "Can I know what the reason is?'

Paul Volker's mind flashed back to the discussion in the committee yesterday, and he glanced at Kester Philip and shook his head to refuse, "I'm sorry, this involves the Fed's internal secrets.'

Not only was he, as Chairman of the Federal Reserve, reluctant to intervene, but there was also strong opposition within the committee. As for the real reasons for the objections of those bigwigs, Paul Volker could guess a little, but wisely chose to ignore them.

Although he was the Chairman of the Federal Reserve and had more power than the President of the United States in terms of financial policy, he still had to respect the opinions of the Vice Chairman, Executive Committee members and the 12 Presidents of the Federal Reserve Banks. He knew very well the nature of the Federal Reserve and his true position.

For financial policies that do not involve major directions, and for matters that are obviously calculated by the big boss, it is enough for him to mention them, and he will definitely not take the initiative to intervene or confront. Otherwise, he may very well be replaced after a year, just like his predecessor, the current Treasury Secretary G. William Miller.

And his promise to make a proposal was also a kind of test, an opportunity to secretly observe the situation. After all, he had only been in office for a year and still needed to further understand the complex relationships within the Fed.

'Oh, I'm sorry for making such an unreasonable request.'

Not getting the answer he wanted, although he had expected it, inevitably made Kester Philip feel even more dejected.

Seeing Paul Volcker calmly looking at him, Kester Philip thought for a moment, took a deep breath, and decisively tendered his resignation.

Paul Volcker simply saw him out the office door, then turned back to his work. He still needed to figure out how to adjust financial policy to further stimulate the US economic market.

As for Kester Philip, before getting into his car, he looked back at the headquarters of the Federal Reserve, clenched his fists for a long time, and finally let them go weakly, getting into the car with a gloomy face.

'Go back to the company first!'

...

As night fell, those who closely followed the Philip Brothers knew that this last chance was ultimately not seized by the Philip Brothers.

Sure enough, the following morning, the New York Supreme Court issued an order freezing the assets of the Philips Brothers Company, and the Philips Brothers Company officially entered the asset liquidation process.

Deloitte & Touche was then appointed to lead the formulation of an asset liquidation plan, and a liquidation team consisting of Dewey & LeBoeuf LLP, Standard & Poor's, the New York Stock Exchange Commission and the management of the Philips Brothers Company was formed to liquidate the assets of the Philips Brothers Company and make an announcement.

Immediately afterwards, the New York Stock Exchange temporarily delisted Philip Brothers.

Philip Brothers' share price closed at $1.58, giving it a market value of $237 million!

Yesterday, at the close of trading, Philip Brothers' share price was still at $1.87, but as it was certain that Philip Brothers would be liquidated today, the share price plummeted at the opening of trading this morning. Investors, who never count on luck, were even more disheartened.

But it was useless to give up hope. No one wanted to take over the stock. With the temporary delisting of Philip Brothers, half of the investors' funds were locked up. If they wanted to be listed again, they could only wait until Philip Brothers became profitable again, but that was just wishful thinking.

The other half of the possibility depended on whether any institution was willing to buy from these investors offline. As for the price, it depended on the psychological price of the buyer and seller.

The market value of 237 million US dollars was already very low. To be on the safe side, Xia Yu immediately ordered Toby Moulton to go out.

While all eyes were on the liquidation of the Philip Brothers' assets, the employees of Jiuding Securities Company quietly approached the shareholders on the list, according to their groups, with the shareholder list and the formulated acquisition plan.