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Most likely is an extension of deadline RNS tomorrow. This would effectively be only the first extension, because the consortium has only existed for just over a month.
How the market reacts to the RNS will depend on its wording. Is it hoping too much to think that it'll say that they have agreed the main terms of a deal, and that they expect it to be announced in the next few days? What a boost that would give to the SP!
My main fear is that smart alec advisers have been working on a complex smoke-and-mirrors plan which is neither one thing nor the other, but leaves shareholders out-of-pocket - and the advisers with a bumper pay day.
The points made by some on here about the AA debt, financial position etc were apparent after the 2020 annual accounts were published months ago. Those same points were actually apparent way before that but let’s leave that aside.
It is obvious the money (market) has got bored with this or thinks a deal has gone. But if the business is a complete piece of no hope crap why has a PE player spent so much time looking into it? Genuine question. Genuine answer welcome.
Enlighten me to what assets you are referring too which could make a dent in the dept.
jamesbond0071977 don't start this again. I thought you knew everything about the AA.
It’s a been a rollercoaster, again small shareholders been robbed whilst the big boys made a packet and put out silly notes to fool the masses. At these levels with no bid , sub 15p , vey sad. I do wish all well and I hope they pull a rabbit out Of the hat , good luck
Mr Flibbels there are no assets to sell, all been stripped by previous PE Vultures.
Sorry but I can’t agree. The problem is refinancing the debt. Who would lend, at a good rate, to a company that can not evidence sustained reduction of the loan? Hence this scenario indicates high risk due to performance fluctuation potential.
We not sit pretty much where the SP sat before announcement of potential bids.
Sadly, any ‘no bid’ announcement and this will drop further like people suggest, in my opinion.
Sorry to say but there will be no bid. There is simply too much weight behind the movement downwards. Once the no deal announcement comes it will plummet to below 17p. Then a short term buying opportunity may arise.
IMO
We will get an RNS at 7am tomorrow requesting an extension.
We are still in the same position as Friday. Nothing has changed other than a few days closer to news.
the good news is from here it wont fall so much on no takeover but will gain loads if its on
why is it looking highly unlikely? We are in the midst of an extended takeover period?! it's never looked more likely!!
More RNS notices regarding short positions than comments on here doesn’t evoke confidence. Although the two are not correlated just seemed apt considering the we are all eagerly awaiting the good news of 55p per share
Refinance is not an option the AA will take when they can pay the next round of financing by selling an asset. This is not likely going to happen. We should get an outcome in the days or week(s) ahead. Hang in there jamesbond0071977, don't panic.
ABC don’t seem to agree with you James , their still buying in .
We all hope that a buyer can be found but now looking highly unlikely so refinancing is the only option. They get no choice in the matter. They HAVE to refinance because the term is up. They CANNOT pay the debt back, so they have to refinance.
Interest rates being low won't make a blind bit of difference. The rates will be set according to the risk, and the risk in loaning to the AA at the moment is HUGE. Therefore much higher interest rates. This was explained in the briefings last year, although they hid the huge risk bit as per usual.
If they can't refinance, the receivers will be called in.
Mcgrimes, that is what I said.
I think it’d be irresponsible for AA to pay, or for shareholders to chase, a dividend in lieu of reducing the debt.
As I have said, I cant see anything much happening to the SP until the debt is substantially reduced, or arrangements are made to pay dividends.