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Posted by emmamadison2410,987 pts Sunday, July 14, 2019

YG reportedly preparing to repay 67 billion won investment from Louis Vuitton + netizens react

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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.

Stay tuned for updates.

  1. [+4,946, -57] Naver is their 2nd largest shareholder though so Yang Hyun Suk will never be investigated...
  2. [+2,052, -66] Honestly businesses like YG that have no social awareness need to be put out of business...they can adversely affect society if they don't fulfill their corporate social responsibilities...
  3. [+1,059, -19] Are you kidding? Naver is their 2nd largest shareholder and they'll never want to mess with the national pension...just by looking at that alone you can imagine the result..
  4. [+919, -50] Things wouldn't have gotten this bad if he didn't debut with Seo Taiji..Yang Hyun Suk is just a natural born thug..
  5. [+712, -15] The most angry ones are the shareholders of the National Pension..
  6. [+171, -0] YG accounts for 5.5% of the national pension...the public's blood must be boiling right now..
  7. [+72, -1] Why our national pension invests in such a trash company is insane!! Just collect all of it at this point and invest it in growing industries and corporations instead..
  8. [+65, -2] They'll go broke soon..just wait..don't even think about coming out on TV!!
  9. [+60, -2] They have a lot of luxury sponsors so they'll just pimp out all their artists..
  10. [+37, -2] Isn't this bankruptcy??..
  11. [+31, -2] Time to close the pharmacy's doors!!
  12. [+29, -1] Big Bang are the ones that fed them though..
  1. Seungri
  2. Yang Hyun Suk
102 254,859 Share 78% Upvoted

52

DTRT
DTRT7,203 pts Sunday, July 14, 2019 25
Sunday, July 14, 2019

#BoycottYG


If the corrupt Korean authorities refuse to properly investigate, starving YG out of business is the only solution.


If you continue to give YG money you are directly funding organized crime.


Supporting YG is NOT supporting your favorites. Look at what YG did to 2ne1, Ikon, and others. If you want to support your favorite YG acts, encourage them to leave YG.

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37

pink_oracle
pink_oracle15,431 pts Sunday, July 14, 2019 8
Sunday, July 14, 2019

YG's accountant be like;

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