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I'm not tempted. I think the game is over. This was either a colossal blunder by Avanti or a cynical move to enable the bond holders to take it over.
At work years ago, we used to say "RTFM" - guess that changes now to "Read the f(ree) RNS" with apologies to Blowntobits - "The Company also has a satellite payload, HYLAS 2-B, which it has operated since November 2016 under an indefeasible right of use agreement entered into in June 2015 with another satellite operator, as well as a payload on the ESA's EDRS-C satellite, HYLAS 3, which is currently under construction and continues to experience delays and is now expected to launch in the first half of 2019 (although such date is subject to change). As of 30 June 2017, the Company had incurred approximately US$49.5 million and expected to incur an additional US$37.5 million in connection with the construction and launch of HYLAS 3." The full RNS contains masses of info - enough for me to take (another) gamble... gla
My take is as follows annoyed I didn’t cash in two weeks ago but was holding out for the launch. Aim lesson learned if you can de risk do it. Next dilemma top up next week, if the price stays this low then probably worth the risk. Reason being that I like what the company is trying to do nothing more. Gla.
Yep - just added few hundred quid at 4.7p. Who knows what'll happen, but the risk/reward feels about right to me here. Made a small profit last time I traded in and out, so let's see how it goes this time.
So... If agreement is reached and this often mentioned �40M arrives along with some sales, is it possible that a rights issue will follow? In part this might give a further lifeline, allowing more time for the sales to rise. Also where does HYLS3 come into all this? IIRR it was sent back to the factory, could this still be of use or perhaps a sale, must have some value surely? Anybody up on the latest news re HYLS3?
Still falling. How low will it go ? Bought yet Matt ?
Yes, looks like Avanti are expecting Solus to take up the entire offer. So perhaps a little light at the end of the tunnel. Thanks Biko. Must admit that I had missed that.
Scotty I think you will find if I am correct Solus Funds are one off the biggest bond holders anyway .
buko, understood, hopefully the bond holders are prepared for another round of lending. If solus funds comes out owning 42% of the company I wonder what this allows them to do with regard to the companies running and whats left. I bet their recent hire is well chuffed at the situation. He only officially started last week... or did he Kyle Whitehill commented: 'I am delighted to be part of Avanti's new beginning. As HYLAS 4 is launched, a new story will be written. There is great opportunity here. We are bringing much needed, secure and reliable broadband communications services to communities, governments and companies across Europe, Africa and the Middle East. In Africa, we will help transform a continent by bringing communications and opportunity to unserved communities. I look forward to working with the team at Avanti and, with my contacts across these regions, to deliver great services to Avanti's customers and great results for its investors.' Paul Walsh, Chairman, commented: 'We welcome Kyle, who has the right skills and experience to drive and deliver Avanti's refreshed growth strategy. His significant international experience and leadership skills will lead the Avanti team in building on the exciting opportunities created by the launch of HYLAS 4.
Scotty the open offer is for $4.33million Solus funds are interested in taking up all the offer anyway the rest is down to the bond holders .
I hope the open offer isn't the only way they hope to raise the extra 50m or we really are screwed at these current prices. Im in for a punt at a 7p average but fully accepting this could be a total loss in the next couple of weeks. I've agreed all resolutions in the hope this will give the company a boost to get through the coming months. As i understand it if you don't vote at all these are taken as acceptances so hopefully most just ignore it and the resolutions pass. Its a gamble pure and simple.
And your entitlement will be at 11.2p a share. Will you be taking the offer up and buying the shares ? ...just bought my entitlement quantity on the market at half price... can't resist a gamble! gla
DoubleU A very good summary. I have read the documents and it seem that by taking up the offer instead of a 1200% odd haircut in the number of shares, one can get a 900% haircut. So - Because I am in quite deep for a private investor and have several holdings over the last six years, some so far under water , I have decided to vote in favour and take up the offers along with a few extras. Within 3 weeks the folly or otherwise of this will become clear. Regarding the share price slump at present, I feel this is trading, I expect to see the price rise close to deadline, the 12 p odd price had already got the 1200% haircut factored in I hope. All is on agreement, funding and sales, no pressure there then? Of course some kind of corporate action might well follow, leaving Pi's high and dry. I guess administration, then buying back assetts at knock down prices is even possible. Given the last list I saw of big investors I do not believe that is the intention. Whatever won't loose my house on this, although another painful experience if things go belly up, all monies have come from accumulated dividends and profitable sales. By August ALL will be clear. Have a nice summer.
Agree. It is consistent the fact that putting the satellite first in orbit and then releasing the news. But again, do the bondholders see the value of the company or they think it is a waste of SPACE.
Hi Cassius probably not just take a chance at this price or less and let Solus Funds pick up the tab . If the Debt for Equity Swap and the Open Offer are completed, the Solus Funds will hold in aggregate up to a maximum of 42.0 per cent. of the Enlarged Share Capital (assuming that the Solus Funds subscribe for their full Open Offer Entitlement and that no other Shareholders subscribe for Open Offer Shares)
https://advanced-television.com/2018/04/10/avanti-issues-worrying-warning/ If this article is right it seems to me that this recent news is Avanti putting pressure on the bondholders to complete the swap. If they are worth their salt they would be well aware of the ramifications of not completing. Have the bondholders got anything to gain by letting Avanti go into administration? Me thinks there might be a bit of brinkmanship going on here.
Good to see that you acknowledge the truth Qd.
Ive been watching this quietly for the past year (as my previous convictions were wrong but i kept the shares as there wasnt much value left in selling). I decided to top up yesterday at circa 6p for the following reasons: 1- D4E swap has been approved by the bond holders so I assume there is no way back for them to revoke this approval (unless shareholders vote against he resolution). Appreciate if others have a different view on this point 2- New CEO, CCO throwing the garbage out in a classic clean up act and snapping this opportunity to increase the companies liquidity- they may be making a gamble but if it works it gives them the oxygen to grow the busines. If it doesn’t, their names wont be pegged to the failure! 3- bondholders acceptance of a huge haircut in the D4E means they see higher value vs the option of putting Avanti into administration or even liquidation. I am not convinced an additional $50m of funding will tip the balance for them especially if first point holds true My worry is whether this was all a show put by bondholders to ensure Hylas 4 gets into Orbit before they trigger admin proceedings... Huge gamble but i think we have more than 50% probably of getting D4E completed and raising the $50m. So worth it for me considering the short term upside. In any case we’ll find out in a few weeks :)
And your entitlement will be at 11.2p a share. Will you be taking the offer up and buying the shares ?
Absolutely agree with you Scotty. Yes it is very complex and we need legal knowledge. Yes the requirement for new money is new news (yes, I have changed my tune there). And yes, although I know nothing about how these things happen, delisting is a real concern to me, and it would be deeply dishonest as you say, in view of the new cash requirements. While shareholders can be expected to take responsibility for decisions we make in view of the available facts, we cannot be expected to foresee what is dishonestly withheld.
The launch had been sorted and financed some time ago . The open offer will be with your brocker i'm with halifax and it was posted on monday the entitlement that i've been issued .
Who is entitled to buy into the open issue? And has anyone on this chat decided to do so?
Also, can someone explain why the hell they launched hylas 4 when they knew full well they were in this dire predicament. Is this something to do with being able to sell assets if it does come to insolvency and pay the bondholders?
If it goes into administration the chances of you getting anything at all are about 1,000,000 to 1. I don�t even like the odds of this open issue being fully subscribed.
A couple of major obstacles are ahead of us. Unless these bondholders hold a long term view of their investment , then we all are doom.