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CH187 | GSI
🕑 Added 2025-03-04 06:26:10 +0000 UTCNihonbashi Kabutocho, Tokyo, Japan.
Home to the Tokyo Stock Exchange and numerous financial institutions, this district was often referred to as Japan’s Wall Street. It was also where the Japanese branch of Eldorado Fund was located.
In a sleek conference room with a large glass window overlooking a dense cluster of high-rise buildings, Nissan’s Head of Finance, Moriyama, sat anxiously with one of his subordinates.
They had arranged this meeting in Tokyo to negotiate the termination of an options contract with Eldorado Fund.
A cup of tea, brought in earlier by a female staff member, sat untouched in front of Moriyama. Instead of drinking it, he kept glancing at his wristwatch, growing increasingly restless.
Noticing how many times his superior had checked the time, the subordinate hesitated before speaking.
"Should I step outside and ask when Mr. Porter will be arriving?"
Moriyama thought for a moment before shaking his head.
"No. We’re here to make a difficult request. Let’s wait a little longer."
Even as he answered, his gaze flickered downward again to check his watch.
Seeing this, the subordinate remained silent, choosing not to press further.
Five more minutes passed.
Finally, the door opened, and a tall, well-dressed Caucasian man in his late 30s entered the room, accompanied by a Japanese staff member.
This was John Porter, a former Lehman Brothers executive and the current head of Eldorado Fund’s Japan branch.
Although he was a native American, he had lived in Japan for over five years, becoming fluent in the language and establishing a strong network of local connections.
"I apologize for keeping you waiting. You must have had quite the trip from Yokohama."
At Porter’s words, Moriyama immediately stood up and extended his hand.
"Not at all. I appreciate you taking the time to meet us despite your busy schedule."
After exchanging a firm handshake, the two sides took their seats across from each other at the long conference table.
Porter, maintaining a warm and affable smile, glanced at Moriyama with a relaxed demeanor.
"With the dollar-yen exchange rate rising so sharply, it seems like we’re dealing with multiple meetings a day regarding our options contracts. Lately, even two bodies wouldn’t be enough to keep up."
"…I see."
Unlike Porter, who made the comment lightly, Moriyama’s expression stiffened slightly.
Noticing this subtle reaction, Porter smirked inwardly. His opening remark had done its job—setting the tone and putting Moriyama on the defensive before the negotiation had even begun.
"I understand Nissan has a matter to discuss regarding its options contract?"
Moriyama leaned forward, his posture growing more serious.
"Yes, that’s correct."
"Please, go ahead."
"We would like to terminate our knock-in, knock-out option contract."
Porter’s lips curled into a faint, knowing smile.
Just as he had expected, Nissan—like so many other companies—had reached a breaking point and was scrambling to resolve its precarious position.
Leaning back in his chair, Porter feigned reluctance.
"I’m afraid that won’t be possible."
"But the contract clearly includes a termination clause," Moriyama countered urgently, swallowing hard.
"Of course it does. But as you must have read, termination requires mutual agreement from both parties."
Porter delivered his response smoothly, as if reciting a well-rehearsed script. His eyes met Moriyama’s directly.
"I assume you’re aware of today’s exchange rate?"
"……"
"The rate has dipped slightly from yesterday’s closing price, settling at 99.11 yen per dollar. But it’s still hovering dangerously close to the 100-yen mark."
Porter shrugged as he observed the grim expression on Moriyama’s face.
"In other words, we’re on the verge of triggering the knock-in option conditions. If I were to terminate the contract now, my head office would probably sue me for breach of fiduciary duty."
Moriyama was well aware of how unreasonable his request was.
But with losses amounting to hundreds of millions of dollars at stake, this was no time for pride or formalities.
Clinging to whatever hope remained, he pleaded desperately.
"The yen has weakened significantly, but it hasn’t broken past 100 yet, has it?"
Porter smirked slightly, his confidence unwavering.
"That’s true. But you wouldn’t have rushed over here if you weren’t certain it would cross that threshold soon, would you?"
"I… that’s…"
Porter’s sharp remark left Moriyama at a loss for words.
He frantically searched for a counterargument, but before he could come up with one, Porter’s voice rang out—polite yet resolute.
"I sympathize with your difficult situation, but I can’t authorize a decision that would put the fund at a disadvantage. My apologies."
It was a flawless rejection, leaving no room for negotiation.
But Moriyama couldn’t afford to leave empty-handed. With desperation creeping into his voice, he pressed on.
"Please reconsider. The option hasn’t been triggered yet. If we offer a sufficient termination fee, it won’t cause any trouble for you, will it?"
"Hmm…"
Porter folded his arms, furrowing his brow as if in contemplation.
"Let’s entertain the thought for a moment. How much are you willing to offer?"
Moriyama’s eyes lit up with a glimmer of hope.
Porter’s expression suggested he was only asking out of courtesy, but if the buyout price was appealing enough, he might reconsider.
Biting his lip, Moriyama quickly weighed his options.
His original plan was to start low and negotiate upward, but judging by Porter’s demeanor, half-hearted bargaining wouldn’t get him anywhere.
"In that case…"
Moriyama quickly calculated his options and presented the highest amount he could offer.
"We’re willing to pay $100 million as a termination fee."
His gaze was firm as he locked eyes with Porter.
A hundred million dollars was no small sum.
He had fought tooth and nail to convince Director Yamamoto to scrape together that amount, so he was certain Porter would at least show some interest.
However, contrary to his expectations, Porter remained unimpressed, his expression indifferent.
"You do realize that if the exchange rate reaches 100 yen per dollar, our profits will far exceed the amount you're offering, don’t you?"
"But the knock-in option hasn’t been triggered yet!"
Frustration seeped into Moriyama’s voice as he shot back.
"Even a hundred million isn’t enough?"
Porter let out a quiet chuckle, casually crossing one leg over the other, exuding an air of complete confidence.
"Then let’s just wait and see if it breaks 100 yen before the contract expires."
Moriyama felt his anger flare up for a moment.
But he knew all too well that Nissan was the one in a desperate position. Forcing himself to remain calm, he took a deep breath and asked,
"Fine. Then tell me—what amount would satisfy you?"
"Hmm… Let me think."
Porter paused for a moment, as if contemplating, before giving his answer.
"With the yen continuing to weaken, agreeing to terminate the contract could put me in trouble with my head office. But if you can offer $200 million, I might be willing to consider it."
"Did you just say $200 million?!"
Moriyama’s eyes widened in shock.
That was double the amount he had proposed!
Even securing $100 million had been a battle—how could they possibly come up with $200 million? It was absurd!
Porter, unfazed, simply nodded and stated matter-of-factly,
"Once the knock-in option is triggered, our minimum expected profit is $200 million. That’s the price you’ll have to match."
"Y-you…!"
Moriyama’s face turned red with frustration as he ground his teeth.
"That’s an outrageous demand!"
At that, Porter’s smile vanished instantly.
His once-polite demeanor flipped like a switch, replaced by an icy gaze.
It was such a drastic shift that Moriyama wondered if his courteous attitude earlier had all been an act.
"You were the one who first requested an early termination of the option. If you find our terms unacceptable, you’re free to let the contract proceed as agreed."
It was a harsh statement, but he wasn’t wrong.
Asking them to walk away from a guaranteed profit? If the roles were reversed, Moriyama knew he wouldn’t agree to such a request either.
His lips pressed into a thin line as he found himself unable to argue further.
‘This negotiation was doomed from the start.’
Moriyama’s shoulders slumped as the weight of the situation settled over him.
No matter what, he had to prevent the knock-in option from being triggered.
The best—no, the only—solution left was to settle this with a termination fee.
Feeling as though he were sinking into quicksand, he clung to the last shred of hope and pleaded,
"Two hundred million is too much. Can’t you reconsider, even slightly?"
But Porter firmly shook his head.
"That amount is already a generous concession, considering our business relationship. There’s no room for negotiation—either accept the terms or don’t."
His unyielding stance left no room for compromise.
Moriyama let out a quiet groan without even realizing it.
Securing approval for the initial $100 million had been a battle in itself—doubling that amount now seemed impossible.
For a brief moment, he considered simply waiting it out.
If a miracle happened and the exchange rate never crossed the 100-yen threshold, the knock-in option wouldn’t activate, and Nissan could avoid catastrophe.
But he quickly shook his head.
‘The risk is far too high.’
Everything pointed to further yen depreciation—the U.S. Federal Reserve had lowered interest rates, and the Japanese government was issuing massive amounts of government bonds.
The tide was pushing the yen’s value down, not stabilizing it.
If the currency weakened even further, Nissan wouldn’t just be dealing with a $200 million termination fee—it would be facing an exponentially growing foreign exchange loss.
The thought made his vision swim.
Then, a chilling realization struck him.
‘Could it be… Did Eldorado Fund plan this all along? Was this ridiculous option contract a trap from the very beginning?’
Moriyama shot a suspicious glare at Porter, who sat there exuding an infuriating sense of ease.
But even as he entertained the thought, he quickly shook his head.
At the time the knock-in/knock-out option was sold, the yen had been soaring at an alarming rate.
Even those who predicted a decline never imagined it would plummet this sharply.
‘If someone had foreseen all of this and orchestrated the situation from the start, they’d have to be either an absolute genius or a god.’
But was there truly anyone in the world capable of such a feat?
A bitter chuckle escaped Moriyama’s lips as he realized how absurd his own thoughts had become.
Regardless, he was completely cornered.
He regretted signing the option contract, but there was no turning back now.
No matter how much he racked his brain, he couldn’t find a way out.
With a heavy sigh, he finally admitted defeat.
"I’ll have to discuss this with upper management."
"Go ahead. But keep in mind—you don’t have much time."
Porter’s words made Moriyama’s shoulders slump even further.
"I know."
If the dollar-yen exchange rate crossed the 100-yen mark—even for a moment—the knock-in option would activate immediately.
If they were going to terminate the contract, they had to do it before that happened.
Anxious to convince Yamamoto and the senior executives, Moriyama was about to rush back to headquarters in Yokohama when—
Knock, knock.
A brief knock sounded before a Japanese employee from Eldorado Fund stepped inside.
"Apologies for interrupting."
"What is it?"
"There’s something urgent I need to report."
The employee approached and handed Porter a small, folded note.
Unfolding it, Porter scanned the contents, his eyes widening slightly.
Then, glancing up at Moriyama across the table, he calmly folded the note back and slipped it into his inner pocket.
"Got it. You may go."
"Yes, sir."
The employee gave a slight bow before exiting the conference room.
Watching him leave, Moriyama felt a flicker of curiosity but quickly refocused.
‘That’s not what matters right now.’
The real issue was whether he could secure the $200 million or not.
Just imagining Yamamoto throwing a fit—only concerned with covering his own back—was already giving him a headache.
"Then, as I said, I’ll get back to you as soon as possible."
As he spoke, he started to rise from his seat—
"Ahem."
A small clearing of the throat stopped him in his tracks.
"I’m afraid that won’t be necessary anymore."
"What…? What do you mean?"
Half-standing, Moriyama furrowed his brows in confusion.
What does he mean, ‘not necessary’?
Before he could even process it, Porter’s next words hit him like a hammer.
"Just now, the dollar-yen exchange rate crossed 100 yen."
"…!"
A bolt of shock shot through Moriyama’s body.
He couldn’t comprehend what he had just heard.
The exchange rate crossed 100 yen? When? How?!
At that moment, his mind flashed back to the employee who had handed Porter the note earlier.
‘No… No way. That note…!’
His hands trembled as the blood drained from his face.
The staff member who had been gathering documents beside him froze in stunned silence, his expression mirroring Moriyama’s own disbelief.
"I… Is that true?"
Barely able to breathe, Moriyama stammered, his voice hollow.
Even after hearing it with his own ears, he struggled to accept reality.
"Yes, it is."
"My God."
Porter gave a slight nod.
As if the ground beneath him had crumbled, Moriyama collapsed back into his seat, his face blank with despair.
"With the exchange rate exceeding 100 yen, the knock-in option has officially been triggered. That means our previous discussions are now irrelevant. According to the contract, Nissan must now exchange four times the agreed amount at the predetermined rate. I trust you won’t forget that."
Porter’s voice remained cold and emotionless as he stood up and exited the room.
Left alone in the conference room, Moriyama slowly buried his face in his hands, overwhelmed by devastation.
"So it really happened… The rate crossed 100 yen. It’s all over now."
