Chapter 1137: Di Liner's VAM Agreement

Ren Xia suddenly understood: "Is it the result of your entrepreneurship?"

"Yes. Di Linar briefly explained that when she was a signed artist with Oss Entertainment earlier, she started a business to establish Di Linar Studio, when she already knew Ren Xia, and also talked to Ren Xia about a movie "Dragon King Whale".

Everyone should remember that Di Linar told Ren Xia very clearly at that time that Ren Xia invested in the movie "Dragon King Whale", but not in Di Linal's studio.

In other words, Ren Xia used his company to endorse Di Linar and support Di Linaer's entrepreneurship, while not holding shares in Di Linaer's studio.

By the way, according to Ren Xia's original opinion, Di Linal's studio is called Heck Studio to the outside world, and Di Linaer Studio is called it privately, and the title "Heck" laid the foundation for the later Heke Entertainment.

The problem is that Di Linar had the idea of setting up a studio for a long time, and when it was actually implemented, she found that she had no money.

Di Linaer makes a lot of money, originally known as a money printing machine in Oss Entertainment, but the problem is that she can earn more and spend, she doesn't save too much capital, and the cost of setting up a studio is more than she imagined.

Because Di Linar had previously negotiated with Ren Xia, Ren Xia only invested in movies and not studios, so Di Linar was embarrassed to ask Ren Xia for financing.

It was also at this time that Di Linar met a Hengshan Capital, specializing in all kinds of venture capital, and the boss Xue Weigang expressed interest in investing in film and television studios, so Di Linar signed a VAM agreement with Xue Weigang.

Di Linar and Hengshan Capital each contributed half of the capital to establish Di Linal's film and television studio, and each party accounted for half of the share capital.

However, things are not so simple, it is not as simple as the two parties will receive dividends in the future according to the capital they hold, otherwise it will not be a VAM agreement.

According to the terms of this agreement, Dilinar Studio must launch three films within the year, each of which will exceed one billion at the box office.

If each of Di Liner's three movies can exceed one billion box office, Hengshan Capital will give 10% of the shares as a reward. In other words, in the future, Di Linar will hold 60% of the shares, while Hengshan Capital will hold 40%.

On the contrary, if Di Liner's box office is not up to standard, Hengshan Capital will withdraw from the studio.

Di Linar must repay all the funds invested by Hengshan Capital, plus 10% interest, to Hengshan Capital.

Ren Xia ran so many enterprises in his previous life, and he knew very well what the VAM agreement was about, and there would be differences in the specific terms, but the nature was similar.

Basically, the operator and the capital party agree that if the operating performance meets the standard, the capital party will reward the shares, and if the performance does not meet the standard, the operator must repay the principal with interest.

The risk of VAM agreements is very high, and many operators can only declare bankruptcy because of the failure of VAM.

However, don't think that the capital side can make a steady profit, if the operator declares bankruptcy, then how many assets must be used to repay the debt, but if the assets are not enough to repay the investment of the capital side, the capital side will lose money.

Although the VAM carries the word "gambling", it is not actually gambling, but a completely legal financing act.

Di Linar signed this gambling agreement and did not tell Ren Xia, thinking that she was full of confidence and thought that the movie she made would have no problem with a box office of more than one billion.

The problem now is that the box office has really become a problem.

There was an exception clause in the original VAM agreement, if all of Di Liner's first two films did not meet the standards, then Hengshan Capital could request the termination of the VAM agreement in advance, and Di Linar must immediately repay all the principal and interest without waiting for the third film.

At present, Xue Weigang invoked the exception clause and was ready to quit the studio and ask Di Liner to pay back the money.

So how does this matter have to do with Heck Entertainment?

When Ren Xia formed Heke Entertainment, Di Linar became a shareholder of his own studio, in other words, Hengshan Capital was also indirectly a shareholder of Heke Entertainment.

However, Hengshan Capital, a shareholder, has no impact on Heke Entertainment.

Because according to the VAM agreement, Hengshan Capital cannot interfere with the daily operation of Di Liner's studio, and if Di Linar participates in other enterprises with the studio, Hengshan Capital does not have any rights in other enterprises.

It can also be understood that the shareholder of Heke Entertainment is still Di Liner, but Di Linar owes Hengshan Capital a lot of money.

Therefore, Ren Xia didn't know the existence of Hengshan Capital at all, and the key was that if Di Liner couldn't repay the principal and interest, he could only declare bankruptcy, which would implicate Heke Entertainment.

"What should I do......" Di Linar sighed for a long time: "Now I can only declare bankruptcy, and it is difficult to say what impact it will have on Heke Entertainment at that time, and it will be very difficult for me to start a business again in the future." ”

Ren Xia said categorically: "You can't leave the stain of bankruptcy. ”

"But I don't have the money to pay it back. ”

"How about the movie "Dragon King Whale"?"

"It's not launched yet, but this time I'm going to Taklamakan to get a location. With a long sigh, Di Linar said very helplessly: "I plan to withdraw "Dragon King Whale" as the third film of the studio, I also explained to Xue Weigang, I really put my heart into this movie, and the publicity and distribution preparations are also very sufficient, and the box office will definitely be reversed." The problem is that Xue Weigang didn't listen at all, and even said that I was not a business material at all, and this movie was not much better, so he decided to terminate the agreement with me. ”

Ren Xia sighed: "I'll provide you with financing." ”

Dilinaer's eyes lit up: "Really?"

"Of course it's true. Ren Xia nodded very affirmatively: "If your studio declares bankruptcy, then your equity in Heke Entertainment will be converted into cash to offset Hengshan Capital." Originally, Hengshan Capital was not a shareholder of Heke Entertainment, so it became a shareholder, and I don't want messy people to join my business, so I can only give you financing to cope with the past. ”

Dilinar exhaled, "Great. ”

"The financing I provide to you is not considered to be a stake in your studio, but it is still regarded as an investment in the movie "Dragon King Whale", and the box office of the movie will be distributed to me according to my investment amount. ”

Di Linar nodded vigorously: "No problem." ”

"You're really going to have to be attentive this time. Ren Xia was very worried: "If "Dragon King Whale" is also messed up, not only will all my money be wasted, but the future of Heke Entertainment will also be worried." ”

"I'm still very confident in this film. As she spoke, her phone rang.

Dilinar glanced at the number, was stunned, then got up and walked to the window and picked up the phone.