Go and recalculate the covenants - both interest cover and leverage following the Hovis deal. If they don't sort out the refinancing now they will breach their covenants this year. And its no good sticking to the original pension payments plan as they are not generating enough cash to cover them and the increasing interest costs (+1% on the margin and £80m of the dodgy swaps become interest bearing). And I can't see the banks agreeing to a new deal when there is no hope of them being repaid and the leverage multiple is over 5x. And if they issue a bond to reduce the banks exposure, what interest rate will it be at - more than the bank debt, that's for sure, so there will be even less cash flow.
And the key thing here is that I haven't mentioned the poor bl**dy shareholder once yet - and that's exactly where they stand - last in line.
And no, I can't explain why the share price stays up where it is - does not compute when there is no sign of any return to shareholders in the foreseeable future - either someone out there knows something or someone out there knows nothing (about company valuation).
that the SP is where it is given that a rights issue is expected soon. However, some part of me still belives that we may not have a rights issue this year. Maybe GD has a trick up his sleeve, with a good refinancing deal, even a share placing may be enough.
I was thinking along the lines they may be wanting to announce confirmation either way on a RI at the same time or a new financing deal so may leave it as late as possible? Who knows, truth is they could come any day.
Let's hope premier have consolidated their finance and got a.better deal to boot.now we have a.partner with hovisr and investment in them, I'm sure the share will bounce if we don't have the rights issue. Vulture funds can only pounce if the banks won't lend. I'm sure that I read recently that a smaller number of banks are and have agreed. Once the vulture finance agreements come up for settlement can we repay with better terms. All helps with the costs,and ultimately profits. A.Billie going to wonga because the high street lender won't lend,but I think.k.we are in a lot better shape.aren't we? Pensions will be paid, and the pensioners will gain nothing by bringing down the company ? Steady as she goes,I hope.
Nobody is certain there will be a rights issue, however there's been a lot of news, too much for it to not be being considered.
A new finance deal won't hold off vultures picking up the debt, an RI will in my opinion give Pfd a real kick start, as it's obvious that trading out of the debt is very unlikely from the last few results details. There simply isn't enough real trading cashflow. We "should" have started pension contributions now, I can't see with that there will be any cash to pay down debt.
I'm hoping the results come with news on the RI as I fear another news of deferred pension contributions again will really spook the market, and the vultures holding debt will get very interested.
Results day Friday? not sure, perhaps the following week. Not still 100% certain we will see a rights issue this year. The whole ethos of a rights issue seems to be to prevent ''vulture funds'' soaking up PF debt and if any other mechanism, more than likely an extension of finance facility can counter this threat, we may not see a rights issue this year.
Results day Friday.I think it's the rights issue and or financing that's causing a stir,or rather a blockage. Think the results will be as expected.just need to see what they are up to on the rights fro.t.at least they are not 70p aye !!!
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