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Buying suits could be long way of waiting
Never saw the news, but so many huge companies getting hit, and quite a few have already gone into admin.
Online companies such as Boohoo and ASOS will do will.
Who is going to by suits now when there work, events, weddings are all on pause??
Bagir needed to be more proactive and diversity. Could they still do it? Unlikely but not impossible. Rather than suits could they make other clothing objects?? (not sure how difficult it is with machinery etc)
Will find out soon enough...
Did anyone see the news last night will all cancelled clothes orders for many companies. This is not coming back I'm afraid.
Ruyi could make an offer again possibly, they are still in "friendly discussions", they probably offer much much less than before. If they offer 5mi (a third of what they offered before), then the SP would be 1.15ish
I still believe that there is potential in the company, but AIM is full of corruption and the board don't give a crap about SH....
Thanks for posting the Act wording daytrader17.
What's your view on the Bagr.l specific play out ?
Thanks P65, it must be a kick in the teeth for him as well, buying in at 3.5 pence !
P.
Prime, good point about saving the company in 2016. Just maybe, he's here to do it again but I still think he might take this privately with much fewer legal challenges/hurdles to overcome.
Ironic that we were all doing the hi fives about Ruyi taking a majority shareholding over a year ago and potentially transforming the company......ah what bliss that would have been if it had taken place!
Does anyone know much about our largest shareholder ?
He saved the company in 2016 from heavy debt. here's hoping he does it again !
P.
Such a shame, I think my average is around 1.3. At this moment 1p sounds amazing! Still hopefully that we walk away with something from this...
I feel you for. I lost 5k on this. And thought we were on to a winner. After covid clothing companies will start up again. Not us. But factory will be bought by the Chinese for pennies not 16 million
Looks like everything maybe lost. Such a shame I invested heavily thinking that there was huge potential in this. 1.5 million shares pretty much gone
Going private might be a lifeline. But this will just disappear like they all do. Private companies do not come back to the market. Frr atc never came back and folded.
Cont... However, the law creates a presumption that a director or general manager took reasonable steps to reduce the extent of the insolvency, if measures were taken to evaluate the economic position of the corporation and acted to ensure that the corporation take one of the following measures:
Receipt of assistance from a corporate rehabilitation specialist;
Negotiations for debt settlement;
Commencement of insolvency proceedings
International insolvency proceedings
The law adopts the model formulated by the United Nations’ UNCITRAL commission and prescribes a designated track for the recognition of foreign insolvency proceedings.
Cont...
Insolvency proceedings below NIS150,000 will be administered entirely by the Enforcement and Collection Authority.
Insolvency proceedings above NIS150,000 will be conducted before the official receiver (the Insolvency Commissioner) and, if relevant, before the court with respect to further, more specific matters.
Simultaneously, with the issue of the order for the commencement of insolvency proceedings, the Insolvency Commissioner shall appoint a trustee for the debtor and an audit will be carried out, in which the debtor’s economic capability and his conduct will be examined (lasting approximately 12 months).
At the end of this audit a payment plan is established, at the end of which the debtor will receive a discharge. The default scenario is a payment period of three years, however, the court reserves the right to increase or decrease the period depending upon the circumstances of the case. If the debtor has no proven financial ability to pay the creditors, he may be granted an immediate discharge.
Order of Repayment
Under Israeli law, generally speaking the order of repayment in insolvency proceedings is as follows:
Creditors secured by a fixed charge
Expenses of insolvency proceedings
Preferred creditors
Creditors with a floating charge
Ordinary creditors
Deferred creditors and shareholders
The new law does not modify the repayment order but makes changes in relation to each of the groups. The following explains the principal changes:
Fixed charge secured creditors
A creditor secured by a fixed charge is required to submit a debt claim. In cases whereby the value of the charged asset is clearly higher than the debt, the asset will be realised by the trustee.
In addition, late-payment interest accrued on the debt after the date of the issue of the commencement of proceedings order cannot be collected from the charged assets.
Floating charge creditors
The law provides that a creditor secured by a floating charge shall be entitled to only 75% of the proceeds of realisation of the assets subject to the floating charge. Thus, the law transfers 25% of the value of the floating charge to ordinary creditors (subject to a transitional provision prescribed with respect to existing charges).
Preferred creditors taxes
The law substantially reduces the scope of the preference accorded to the tax authorities. Under existing law, the tax authority was entitled to be treated as a preferred creditor in respect of one tax year of its choice. The new law restricts the preference of the tax authority only to debts pursuant to voluntary debt settlements with the debtor regarding tax arrears. The preference for such debts is restricted to a maximum of three tax years.
Directors’ and CEO’s liabilities
The law allows the court to impose liability on a director or general manager that knew, or ought to have known, that the corporate entity was insolvent and did not take reasonable steps to reduce potential
Hi all,
Not posted for a while, well no reason to. Please see information below ref Insolvency & Rehabilitation law. It's easily accessible online.
The Israeli parliament passed the Insolvency and Rehabilitation Law, 2018 (the law) on March 5, 2018, and it will come into force on September 15, 2019. The law offers a comprehensive reform and provides Israel with modern insolvency legislation dealing with both individual and corporate insolvency.
Aims
For individuals, the law promotes the economic rehabilitation of the individual as the fundamental goal of the insolvency proceedings, emphasising effective reintroduction into the economy.
For corporate insolvency, the focus, where possible, is also on rehabilitation.
Another principal objective of the law is to increase the amount to be repaid to creditors, with additional emphasis on the amount to be paid to unsecured creditors.
Proceedings for corporations
Under the law, a creditor or a debtor wishing to initiate insolvency proceedings must file a standard application to obtain a commencement of insolvency proceedings order. The court will determine whether to channel the corporate entity into a course of rehabilitation or winding up. This decision depends on the economic status of the entity and is independent of the manner in which the application has been drafted.
Upon issue of the order by the court for the initiation of insolvency proceedings, an automatic stay of proceedings will apply. If the court chooses to operate the corporate entity with a view to its economic rehabilitation, a stay of proceedings will also apply against the secured creditors, subject to adequate protection in order to safeguard the value of their security.
Simultaneously with the issue of the order, the court will appoint a trustee to be entrusted with full control of the company’s assets.
As part of the legislative processes, certain parties proposed that a corporation’s assets remain in place and the insolvency process resemble the United States’ debtor in possession (DIP) mechanism, but this was ultimately vetoed by the Knesset.
Nevertheless, the law does create a new mechanism entitled protective negotiations, with traits not dissimilar to the DIP, although this is a temporary provision to be in effect for four years. This mechanism allows a public company to initiate out-of-court protective negotiations with its creditors while allowing it to remain active and without appointment of a trustee. During the period of the protective negotiations, a complete stay of proceedings shall not apply but the creditors may not file an application for an initiation of insolvency proceedings order against the corporation and may not call for the immediate repayment of debt.
Proceedings for individuals
Under the updated law, a substantial part of the administration of insolvency proceedings relative to individuals passes from the court to administrative authorities.
Insolvency proceed
still alive at least.. a very tricky one this though and I instinctively feel it's definitely less than 50/50 on this surviving in the short term... and even if it does then surviving thru remainder of 2020 will be very tricky too. ( but just getting the chance to worry about the second part of that sentence would be a fine thing in itself at this stage perhaps )
Ps; Ezry built that stake here very mostly BLIND of looming co-vid consequences and whatever his plans were prior to covid they might easily be different / very different now.
Also, prior to this possible insolvency situation, if he wanted to cause whatever delisting effect then whatever offer that had to be voted through by existing shareholders would have a better and better chance of passing the more shares he had accumulated prior to that vote
Generally, you could argue that with decent skin on the line his mind will be very focused on this co. avoiding administration in the short term.. but that might easily include him being involved in taking this private and like the rest of us taking the loss of all/most all bets placed monies on the chin .... but him doing so in the knowledge that he might still make that and more back in the long term here. Or, less brutally for the rest of us, hopefully he might just help arrange a loan/revised business plan from somewhere for Bagr.l to survive. ( the value of the base assets here will be far greater in a years time than a forced sale in the coming months and creditors will get that very well too and so maybe facilitate bagr.l surviving this situation at least )
Geng, good point but it's not uncommon for an investor or investors to buy shares in the public domain and then take the said company privately. It involves less regulatory hurdles. Ezry might be doing this as a belief that the company is wholly undervalued at the current SP.
He may look to relist at a later date.
If it was the plan - why would have needed to buy any shares ?
Prime, maybe I'm the cynical type but I can't help thinking that this is all a play and the scene is still set for going privately with the existing board members and this Ezry bloke as the main benefactor.
I agree Dan, hopefully more time bought while the world unlocks.
P.
Just a small glimmer of hope that maybe not all lost. There was an established and 'popular' business behind this company. Coming out of the crisis is fundamental for all.
These conning bastards
GW, I seriously doubt if they're that bothered so long as they get paid and have received the bonuses! The private revert might be a secretive way for them to go back in without being subjected to public shareholders noise!
That would requite some initiative from the board, they seem to be lazy (they're getting paid regardless). There is always other avenues the company can look down, they have been around for half a century- they must have some contracts??