Money Games

Chapter 11Ultimatum

September 4 was a Saturday. I thought I could take a short break, but it turned out to be impossible. To prepare for the next day's meeting with Chairman Lee at the Shilla Hotel, Hyun and I checked out the hotel's meeting facilities. Eventually, we decided to use the conference room in its business center.

I went to the office of Kim & Chang and wrote a three-page briefing outlining our stance on various issues. The intended audience was not only the FSC but also the Blue House, which had requested an update on Newbridge's position. Kim & Chang was in a unique position. It was Newbridge's legal counsel, but it was also trusted by the government, which, knowing Kim & Chang was our counsel, also often requested help from the firm. This arrangement suited us, as we trusted Kim & Chang's professional integrity—especially that of Ambassador Hyun—and were comfortable its lawyers would keep our confidence. We had come to see the firm as an important bridge between the government and Newbridge.

On Sunday, at 1 pm Seoul time, all the members of our team had a conference call to discuss the remaining issues in preparation for my meeting with Chairman Lee later that afternoon. Many thorny issues had been resolved by then, including the agreement, on July 1, on the markdown of 96.5 percent on the retained loan portfolio. The remaining issues were few but no less important. After much internal debate and analysis, Bonderman decided to accept Lee's proposal on the government ...