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Or they could come up with option 3
You dont have 200 billion shares you consolidate
Completely agree with wellington. Wibble Wobble, if only it was that simple.
You may not like it but its an option.....another option would be to canvas potential buyers to get a ballpark potential purchase price for a debt free operation.....then go back to the bond holders and get them to haircut the debt down to that valuation....sell the company, pay of the bond holders but sadly existing shareholders get nothing at all i am afraid.....although an option this one would probably leave the bondholders holding new replacement debt as highly unlikely a cash buyer is lurking in the undergrowth although who knows if Disney would be interest....obviously the more interest the less of a haircut for bondholders.
200 billion shares…lol there is a limit to the number of shares a company can list by the stock exchange. Also which lender would swap the five billion of debt for 200 billion pieces of worthless paper, as these shares would be…IMO
@Wibblewobble1
Get a better envelope, that's complete tosh.
Could be in the ballpark if you could persuade the bond holders to take a £3billion haircut on the deal and swop the new paper for the remaining £2 billion debt.....that would produce a debt free business with a £2 billion valuation.
All totally hypothetical as it depends if the bondholders want to be left with paper....if £2billion is a realistic valuation for a debt free company, adjust paper printing according to what fair value it believed to be.....increase or reduce printing depending on 1p being a too generous or too stingy discount to sp on day of paper production.....increase printing to cover raising of funds to cover short term funding needs (assuming anyone would be willing to do it)
Once you get to your number of new shares to be issued do a consolidation to get to a manageable share base . At this point todays shareholders would be consolidated to near worthless holdings.
All back of an envelope but gives the general approach of going this particular route
@jane i am in the same position as you. Although my losses are a bit bigger.
The market are pricing in full liquidation. Trading halt. Shares being worthless.
Anything else will be a rebound.
" Far better to sell out while you still can - even a few pence is better than 0p."
This is nonsense advice IMO.
I always look at the worst case scenario for each alternative. Right now I could get 2-3k for shares I paid 30k for.
Comparing two options:
Keep em. Worse case: I get zero so I lost 2-3k in addition to the 27k I'm already down for a bad decision today. Big deal.
Sell em now. Worst case: they go back up so I get 2-3k but miss out on the 27k or maybe more I could have got if I'd held. Hige regret for the decision to sell.
The holding is around 10% of last 2 years portfolio gain so hurts but got to take the rough with the smooth, what's done is done. For me, no brainer whether I should sell or hold now.
This board is getting funnier by the day. 400 billion shares?
You know a thousand million make a billion?
You know the mktcap is at £38 million at the moment?
At this point I would rather ride it in to the ground than sell as I think most people of this page are talking **** and just out to make a quick buck by trying to get shareholder to sell up. I would rather wait and see what happens. I have already written it off in my head so any upside from here is a bonus. I still think this is all a big game to get Cineplex to take a settlement out of court. No one knows what's going on really, it's all just speculation at this point.
This isn't going to end well for shareholders. Those who stay in to the bitter end are almost guaranteed to lose their investments. Far better to sell out while you still can - even a few pence is better than 0p.
I am thinking why anyone would want to invest at the minute! Shares are all over the place! It's a mine field out there across most shares!
why would any new investors want to buy shares in a failing business, doesn't make sense.
Who's posted that? 200 Billion shares! What rubbish!!!
Source please ???
At 1 pence a share, is that correct to wipe out the debt and stakeholders to exchange for debt. Am I correct that there will have to be issued 200 Billion shares? That really means total wipe out for any investor right?