Posted by emmamadison2410,973 pts Sunday, September 15, 2019

Industry officials reveal that YG is preparing to return Louis Vuitton's 67 billion won investment


YG Entertainment is preparing to return 67 billion won LVMH investment.

According to a financial investment industry expert on the 16th, "a claim for repayment of 61.25 billion won invested by French luxury goods company Louis Vuitton Moet Hennessy (LVMH) is scheduled for October 16."

At the time of investment in October 2014, LVMH elected to convert the redeemable convertible preferred stock into common stock at 43,574 per share or to repay approximately 67 billion won after 5 years plus 2% interest.

Because YG's share price has plummeted to half its level in five years, YG is expected to incur a significant loss to convert the shares. As of the end of June, YG had approximately 46.6 billion won in cash and cash equivalents and 16 billion won in short term financial assets. It's highly likely that the company will be facing a cash shortage as they prepare to return the funds.

Yu Sung-man, a researcher at Hyundai Motor Securities revealed, "YG's ability to generate cash through sales has weakened significant and its cash liquidity has deteriorated."

It appears that investor's fears about YG could be further heightened if the company's cash assets are significantly reduced due to the Louis Vuitton repayment.

Meanwhile, Yang Hyun Suk and Seungri will be summoned by police soon to undergo further investigations for alleged gambling and 'hwanchigi' overseas. Police have also announced that they will summon former iKON member B.I this week to investigate the alleged drug purchase.

  1. Seungri
  2. B.I
  3. Yang Hyun Suk
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passerby-shi210 pts Sunday, September 15, 2019 2
Sunday, September 15, 2019

The true victims in everything that is happening to YG are their trainees and artists, as well as the common employees. Hopefully YG is also making executive decisions for the future of these young people. Make them transfer arrangements rather than keeping them trapped!!


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Chark_Attack1,578 pts Sunday, September 15, 2019 0
Sunday, September 15, 2019

I'm guessing they promoted the ex-CFO to the CEO position largely to deal with the upcoming financial issues they know they will be facing. While I understand any revenue still benefits YG, a big part of it is still used to keep the company afloat and people employed. If YGE folds/is bought, the artists and talents will likely find new homes but the background employees will probably have a rough time ahead of them. Better case scenario is probably if someone buys out YHS's shares, but it is not in YHS's best interest to sell so the likelihood is low.



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