Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Slipping, was 24-26 cents, now 21-23 cents.
This really is not going to end well for equity. Please don’t risk more than you can afford to lose.
Based on all the info in the public domain the risk reward is diabolical.
Don’t listen to Ivor, I don’t know what his agenda is but there will be no glorious takeover and we must get news imminently.
PFC said that they have to agree the restructuring by early July.
Paul
The fact is the BOD don’t have to report anything unless they are legally obliged to do so. Not sure why you think I am suggesting anyone buys, I am not suggesting anything just speculating on potential outcomes (guessing - like you are) and stating facts. So, if there is no RNS between now and the next accounts that would be good for LTH. The bond price is in the toilet because nothing has happened to warrant an RNS. There is no certainty only quessing.
Ivor
PFC have very clearly stated how dire the current position is. There was nothing positive in their last update. They spelt out that only two options, D4E or insolvency, and that time critical.
However, because they have not updated for a month you now believe that everything is rosy. This is based on wild conjecture, you have zero evidence.
Paul
I am saying the data shows there is a path to follow to trade through. I am saying they do not have to report very much at all. Usually very bad stuff has to be reported. One creditor wants management accounts weekly to extend the facility.
If petrofac were now trading at a loss they would be wrongfully trading and every director would be liable for the debt.
But they are still trading so they are trading in surplus - like the data shows. The creditors do not want a billion shares worth a penny, they want cash.
I have no idea why the BOD has been so alarmist and suppressed the share price, and can only guess.
No RNS again though, eh? 😂
I do prefer to keep optimistic vibes... can telepathy push the share price up ? 😂😂 believe me I am doing my vibes here 😂
Try harder please ladybug!!! ;-0
PFC clearly state that they run out of cash by Sept even after Debtholders giving them a standstill on interest/debt repayments. They desperately need PG’s but clearly can’t get these without the restructuring to reduce the debt burden first.
IMO each passing day increases the risk of insolvency.
Why? Because the D4E terms were announced on 12th April. It’s a complex deal but time critical because PFC are risking losing back orders and will struggle to get new orders. Debtholders are strongly motivated to come together and get this over the line.
You will say it’s because there is a takeover bid at 75p a share!!! If there was any chance of a decent bid PFC would have had to announce it. There is zero doubt about this.
IMO insolvency is either
1. Can’t get PG's so can’t get the $300m, business goes into wind down and we are all stuffed. Nothing left for Debtholders.
2. Partial sale of some assets, wind down of the rest. Equity get nothing, Debtholders might get something but depends on wind down costs and how ring fenced from the good assets. eg the Renewables division must be valuable.
3. Sale of everything out of administration but debtholders only get c. 50 cents on the dollar because the crap assets are effectively given away. Nothing for equity.
Oh my god I need some pills now after this reading ... 75p per share is better than insolvency ! keep positive vibes please 😁
Paul
The data from the accounts show that it is possible to trace through. PFC must produce weekly management accounts to prove continuing solvency. The latter fact is reported in an RNS. The moment they are trading at a loss they must enter into insolvency. That is the legal position.
What was said and posited two months ago is largely irrelevant. We have absolutely no idea what is happening day to day regarding cashflow. BECAUSE THEY DO NOT HAVE TO TELL US.
What we do know is that the moment they are wrongfully trading the BOD have personal liability. Given the history of the BOD and corruption issues tbey would be prosecuted. We can reasonably conclude they are currently - somehow - trading through the cash crunch.
We do not know if PGs have been paid or not. Given that a failure to do so would result in an adverse impact on solvency it is likely - not definite - that they would need to report that. They have not reported that.
The BOD is top heavy with financial specialists.
I know it is frustrating but no RNS is good news for LTH.
A takeover is second best to trading through the cash crunch as the shares will be worth significantly more if they can trade through.
Not sayong tbere
Paul
There may be a partial D4E but there may not be one at all.
The alternative for debt for equity is a takeover (offer for all-share purchase by another business "takeover"), bankruptcy, or liquidation. There are no other options.
"The moment they are trading at a loss they must enter into insolvency. That is the legal position." - it's not great, but plenty of companies trade at a loss; that doesn't make them insolvent if they can pay their liabilities as they fall due. In this case, it's that they can't pay for their liabilities as they fall due (bondholders, trade creditors, bank interest servicing) and unless they can restructure to reduce their liabilities, their prospects are bad.
Hi Paul
Why are you on this board when you clearly aren’t OFC INVESTED? Seems a terrible waste of one’s time, surely!
....not only that but he is pretending to be a well known investment figure, probably niaively believing that this will get people buying into his flawed narrative.....
Bricktycoon12
Yes, they show a loss on the balance sheet on that day. Does not mean they are trading at a loss. PFC are having to provide weekly reports - management accounts probably - to a creditor. My point is that if they are trading at a loss AND cannot pay the coupon and are defaulting then they are wrongfully trading which is an offence and attaches personal liability to the BOD. They would have to cease trading and voluntarily liquidate. They have not done that so must be making money. The balance sheet can be manipulated to avoid tax. Legally of course and they have subsidiaries in many jurisdictions to facilitate that.
Tareq Kawash/PFC are on record as saying if they can get through this liquidity crisis 2024 will potentially be one of the best years in their history. Just remains to be seen whether they survive.
A million shares bought in the last 50 minutes in 250k batches.