Chapter Three: Buying a Factory Made of Debt

There was no heating in Guoliang Precision’s conference room. Tang Guoliang stacked thirty-seven lawsuits on the table. The top document was Lanshi Fund’s enforcement notice. “How much money do you have?” Tang asked. “Nine hundred and seventy thousand.” The finance manager stared. “Unpaid wages alone total 1.8 million.” “That is why I am not buying the equity at a conventional price.” Shen wrote three sets of figures on the whiteboard. “Nine hundred thousand goes into a protected restructuring account. Seventy thousand funds the trial run. Employees convert unpaid wages into fifteen percent restricted equity. Mr. Tang receives ten percent for the patents and continued management. All other old shareholders lose their economic interest.