First, the shortfall was due to the fact that someone else spent 100million each to buy a copper mine in Russia, and then Richard Gill shorted copper in the commodity market. As a result, the Russian government did not allow the export of copper (the Russian government of Nima was simply the nemesis of financiers, and LTCM was also killed by Russia). Richard estimated that the futures market was leveraged relatively large, and the deficit was 412 million.
Then, Miller Company borrowed 412 million from Richard's friend to fill the hole. But this borrowing money cannot be made into a loan, so it cannot make up for the shortfall, it can only be a debt.
Finally, it is impossible for Richard to repay the purchase price from the sale of the company, because the 412 million transaction (which should not be a loan on the report) occurred between Miller and that friend, not Richard personally and that friend. occurring. The buyer can only fill in this hole slowly.
View more about Arbitrage reviews
