The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
At the agm tomorrow there is not a lot to talk about other than the scheme. Its the live or die agreement that has to happen. Its going to be interesting if nothing else but would be gobsmacked if the soa2 proposal was announced tomorrow. More like a lot of filibustering to get the meeting concluded ASAP.
Morning All does anyone have any info on the next lot of news due out from this lot ?
any links or info about the scheme of arrangement and the plan ??
seems their holding back info IMO ?
On a more serious note after pulling your plonker...
Its a very grey, dangerous and wolly area.
Officially if a company acknowledges that insolvency is a very real risk, directors are liable to ensure creditors sit above shareholders. Case law however has tended to sit with insolvency proceedings needing to actually be in process for this to be applied. IIRC this was because in some cases companies were going to the wall servicing creditors over shareholders when insolvency was a threat but not a reality. yet.
Oi... amigoorbust... I resemble that remark!
Based your somewhat schizophrenic postings and rampant bullying I had assumed you knew nothing about it to be honest. I had assumed you were some Stella swigging knuckle dragger who plays stocks like Ladbrokes.
Obviously I was absolutely wrong. Be really keen to hear your wisdom on the subject to educate myself. I just don't feel worthy right now. Xxx
Hereshopin - hope at play indeed. What Yuri says is reasonable and fair. Just because you don't like it and it hurts your feelings doesn't make it *******s.
There is risk here. It's very very real now.
It's all in the fun of it. If you don't like risk invest in the S and P
page 10-11, Remember JB also said last year a managed wind down would give a significant return .
https://amigoloans.cdn.prismic.io/amigoloans/602dd49d-5421-4e29-835d-4c9f56101bd0_Q1+Results_Amigo+Holdings+PLC+Q1+FY22+Financial+Results+FINAL+-+27+August+2021.pdf
Amgo has been exhibiting clear signs of winding down the business for a while.
Cutting overheads is part of standard protocol in these scenarios.
As outstanding loan balance (principle) deflates (collections) - there's significantly lower basis for interest margin (huh, probably better to express this in absolute £ terms? ).
So it's just collection business from now on (organic cash flow) to get back loans and pay secured bond holders in couple of years (Jan-2024).
"Going concern" and "insolvency" was mentioned several times by Board/RNS/Financial reports.
They're not meeting capital sufficiency criteria (FCA requirement) to resume trading (issuing loans)
and will be further suspended by FCA,
They already do fail balance sheet test on solvency
(but passing short-term liquidity test due to nature of business working only on collections)
since Assets < Liabilities (negative equity) and it doesn't look good if you add future other Opex/costs.
Therefore even though they're clearly not "insolvent" on a short-term basis per se
but at the same time this is obvious "doubtful solvency" situation
and in this situation shareholders interests are not considered anymore (only creditor interest are taken into account)
For companies in these situations directors are personally liable (as per UK legislation) for not meeting creditors interests if they do anything to worsen creditor's position ("wrongful trading").
The actions (and priorities/goals) competent directors should undertake / conduct business for solvent companies are completely inappropriate to companies having issues with "long term view" mentioning "going concern" "insolvency" and many other terms in their communications ("parlous", "precarious", "marginal solvency", "at risk").
So do expect further sweetening talks to investors with fuzzy promises (they can't lie obviously) but reality is - game is very different now and interests of shareholders are surely off the table as directors won't take any risks (to trigger personal liability clause in case their actions worsen creditor's position, so no any economical/business risks anymore) but they're highly motivated to keep milking amgo due to high remuneration as long as possible.
Its paid off, cash in bank is rising and will soon be enough to cover the bonds, the bonds are the last major secured creditor, then any cash / cash flow (after running costs and FOS / FCA take their bulk) can go to "those in need" the claimants.
Its a positive RNS, whats not to like? Its another step towards securing payments to the claimants, which is better then no payment to the claimants
Come on Sara i thought you wanted claimants to receive cash back.
Rns is pretty irrelevant. This needs a concrete progress report on Wednesday on where we are. "ongoing negotiations" can't go on forever.
What does the RNS mean by organic cash flow?
There doesn’t seem to be anything “organic” about Amigo’s cash flow. It’s completely illusory as it stems from two very favourable (for cash flow) and unusual events. First, there being no lending. Second, the FCA moratorium on complaints.
Take either of those two factors away and cashflow would look very different. I do hope this isn’t more misleading from the new management team.