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"????"
Yes, Debenhams Group. Secured another £50m facility to cover Christmas trading.
There's a payment to bond holders due in January if memory serves me well.
I haven't seen any further news on the liquidation of Debenhams PLC. I have a "web" checker running on the FTI site (it checks once a month), but I dont think there's been an updated since September.
I guess you could use the expected loss on your tax return without waiting. I'd chance it. I mainly offset using SEIS/EIS.
????
Debenhams plc
Supplemental information on new financing
RNS Number : 3499P
Debenhams plc
09 October 2019
9 October 2019
DEBENHAMS GROUP
Supplemental information on new financing
Debenhams Group confirms that following the successful consent solicitation concluded on 6 September 2019 (the "Consent Solicitation"), Debenhams has raised a new secured £50m facility with certain of its existing lenders. This provides the group with an additional £50m liquidity in order to cover peak trading, in particular the weeks running up to Christmas. This coincides with the normal seasonal peak of inventory requirement for the group. Debenhams expects its peak (Q1) and low (Q2) inventory levels for the financial year ending August 2020 to be within the c. £450m to £270m range, based on historical trends, noting that the portion of ineligible inventory is relatively consistent across the year, with a small increase around the Christmas peak trading period.
The facility is subject to substantially the same pricing terms and utilisation mechanisms as the £200m first lien facility announced on 29 March 2019, as refinanced by the £200m first lien facility announced on 9 April 2019 (as amended from time to time). Through the Consent Solicitation, the holders of the £225,000,000 5.25% Senior Notes due 2021, of which £200,000,000 remains outstanding (ISIN: XS1081972850; Common Code: 108197285) approved certain amendments to the Trust Deed and the Intercreditor Agreement, including permitting the drawing of a further £50 million of secured indebtedness. The group hereby announces that the Fifth Supplemental Trust Deed has been executed by all the parties thereto and the Proposed Amendments contained in the Fifth Supplemental Trust Deed have become effective. Capitalised terms used and not otherwise defined in this paragraph have the meaning given to them in the Consent Solicitation Announcement released by Debenhams on 3 September 2019.
www.investegate.co.uk/debenhams-plc--irsh-/rns/supplemental-information-on-new-financing/201910091625493499P/
DEBENHAMS GROUP
Directorate Change
Debenhams Group announces today that it will be appointing Mike Hazell, currently Group Finance Director, as CFO and to the board of the Group. Mike, a seasoned finance professional, has been with Debenhams since February 2010. He previously held finance roles at Sky and Pfizer, among others. Following a handover period, Rachel Osborne, the current CFO, will be stepping down from the board and leaving Debenhams to take an external role.
Stefaan Vansteenkiste, Debenhams' CEO, said:-
"I would like to thank Rachel for her important contribution to the successful progress of our restructuring during her time at Debenhams. I am pleased that we have such a strong internal candidate for the CFO role, with Mike having played a key part in the refinancing and restructuring activity over the past 12 months. I look forward to working with him and the rest of the leadership team on delivering our turnaround plan."
DEBENHAMS GROUP
Outcome of Challenge to CVA
Debenhams notes that the judgment in court this morning has affirmed that its CVA proposal continues to be effective. The challenge to our CVA was rejected on four of the five grounds of challenge, and the remaining ground has been addressed by the deletion of a technical provision of the CVA relating to landlord forfeiture.
https://www.investegate.co.uk/debenhams-plc--irsh-/rns/outcome-of-challenge-to-cva/201909191109009745M/
Stefaan Vansteenkiste, Debenhams' CEO, commented:
"We are delighted that the court has today confirmed that our CVA is effective and will continue to be implemented as planned. We note that the only aspect that the judge required to be adjusted was a technical provision of the CVA relating to landlord forfeiture provisions.
"Our proposals had unprecedented levels of support from our landlords and today's outcome is good news for our 25,000 employees, our pensioners and suppliers. We retain the support of our lenders, and everyone at Debenhams can continue to focus on trading ahead of the important Christmas period."
"Not sure if MA is contesting this as part of his more general application."
No it's just the CVA as far as I understand it, that happened post Administration and after the business was sold to Celine.
" they are merely following orders in conducting the administration."
They don't follow orders. They are there to liquidate the business, Debenhams PLC, Administrators aren't like a sub contractor. They are Court appointed. Creditors get to choose which firm, but the condition has to be granted by a court. The court can be petitioned by either Directors or Creditors.
"It all comes down to how the court judge MA's appeal."
It's only against the CVA as far as I understand it. If the court finds against Debenhams (Celine) they'll challenge it or apply for Administration of the new business. It's still very likely that even if Debenhams fails to defend the CVA the liquidation of Debenhams PLC will proceed. That's unless there's a seperate court case.I doubt that will happen, as it would be cheaper, and easier, for SPD to pick up the business in administration.
What happens is anyone guess, very few ever get turned over.
"No news coming through on that"
It should come up here when it does: https://www.judiciary.uk/judgments/?filter_type=judgment&search=&tax-single-judgment-jurisdiction=-1&tax-single-court=-1&date-range-after=&date-range-before=
Not sure if MA is contesting this as part of his more general application. No news coming through on that, but it would seem a very odd thing if he were to be successful and then sued the administrators but found he was time barred. Not sure if there's anything to sue them for, in fairness, they are merely following orders in conducting the administration. It all comes down to how the court judge MA's appeal.
https://www.fticonsulting-emea.com/~/media/Files/emea--files/creditors-portal/cip-emea-public/debenhams-plc/sealed-court-order-in-respect-of-fee-application-16-september-2019.pdf
2. In accordance with 98(2)(c) of Schedule B1 of the Insolvency Act 1986, Chad Griffin, Simon Kirkhope and Andrew Johnson be discharged from liability pursuant to paragraph 98(1) of Schedule B1 of the Insolvency Act 1986 in respect of any act or omission in their individual capacity as administrators of Debenhams, such order to take effect from the date falling 56 days after the date on which the final progress report is notified to creditors of Debenhams (or such other date as the Court thinks fit), save in respect of claims notified to the Joint Administrators of Debenhams before that date.
"but it's nice to know MA is not giving up on us small investors"
Ha ha ha ha ha
You reckon that's his motive? How very thoughtful.
Oh, and ha ha
thanks again PEARLS for highlighting the new development high court case GOOD READ
weather we get something back or not , and we might be last in line for any return
but it's nice to know MA is not giving up on us small investors
and will carry on fighting this all the way no matter how long it takes
to get his and our money back from these robbers
i won't be posting for awhile now' until something positive
turn up again
REGARDS
yea yea yea no value for shareholders no value for shareholder no value for shareholder
in every post, 10 times a day its alright for you, and your bond holder mates..
sold out before did you , now you are on here to wind us up
do you work for DEB , sound like it
as soon as PEARLS post something positive to give hope, you are on here like a shot
to wash it down the drain with your long know it all post where DED can do no wrong
you just don't want us shareholders to get anything back do you
so you are on here twisting the knife, hoping we would go away and die
i wish you would stop posting on here
and leave this BB to PI that's still own DEB shares and would like to know
there is a glimmer of hope of getting something back to hold on to
please go away
Just for clarity, and they way I understand it, if the court case is lost by Debenhams the papers are reporting that it will go into administraion. That's not the same administration as your shareholdings are caught up in, but would effect the shareholders of Celine.
The bond holders of Debenhams would still be there, but they would become creditors of the Celine owned Debenhams. Any sale of assets would be to satisfy the creditors of Celine. Not Debenhams PLC.
The bondholders have already been paid to amend the terms of the bonds ( a previous Consent Solicitation) to reflect the change of ownership of the Debenhams buisness to Celine.
As I say, that's the way I understand it.
"I have one question for you if and that is a big Deb managed to become profitable and decides to relist again will we as ex-sh get anything at all?"
No, your shareholding is in Debenhams PLC, not the new vehicle (Celine). I posted a link earlier from the Administrators notifiying of an upcoming court case, 16 September, asking the court to approves their fees and release them from their responsibilities after the final report to creditors. I would imagine at that point, the final report, they would apply to have a "strike off", in all practical terms that means shares of the the once listed company would be cancelled and disappear. The actual business (Debenhams) is now owned by Celine. If it was relisted at some time in the future those shares would be initially owned by the shareholders of Celine. Some of the owners of Debenhams bonds. Shareholders aren't creditors, so they haven't been included in the creditor vehicle (Celine). Neither have all creditors. That's the way I understand it anyway.
I had to admit I initially didn’t read it the same way you did, thanks for the clarification.
I have one question for you if and that is a big Deb managed to become profitable and decides to relist again will we as ex-sh get anything at all?
"Deb latest action is simply giving hints to the court that they did something dodgy through the pre-pack process. Correct me if I’m wrong always happy to hear your view"
Not sure how you come to that conclusion. I would think it suggests the opposite, that the business won't stand another period of administration. We can only speculate, but that would be my reading and the message I think it would send. By design or not. The over arching objective of compaines coming out of administraion is to survive as ongoing enterprise and attempt to satisfy creditors. In this case, both the unsecured lenders (bond holders) and the majority of the landland lords and creditors were protected (to differing degrees). It's the "differing degrees" that appears to be the basis of CPC arguement (and issue). More debt, in my opion, re-inforces the arguement for the need for the CVA and strenghtens Debehams position. If it does go back into administraion I can only see one party benefiting and I don't think that will be the employees, lenders or present or past shareholders.
Thanks devon your input is always valuable. Deb latest action is simply giving hints to the court that they did something dodgy through the pre-pack process. Correct me if I’m wrong always happy to hear your view
" super senior debt"
Ranks ahead of the bond holders and well ahead of the shareholders. So, if the cout case is successful for SPD, and the company is pushed back into administration, SSP are top of the pile for any distribution. Obviously behind HMRC etc. These lender must at least be confident that the business, as it exist today, is a going concern. That might imply the court case, in their opinion, is going to find in favour of Debenhams. I bet it's not cheap debt for the obvious reason....
More debt I see.
Senior debt, super senior debt; what's next: super super senior debt?
Another £50,000,000 of Super Senior Debt.
September 6, 2019
DEBENHAMS RETAIL LIMITED
Required Consents received in Consent Solicitation
Debenhams Retail Limited ("DRL") hereby announces that the consent solicitation it announced on September 3, 2019 (the "Consent Solicitation") with respect to the £225,000,000 5.25% Senior Notes due 2021, of which £200,000,000 remains outstanding (ISIN: XS1081972850; Common Code: 108197285) (the "Notes") issued by Debenhams plc (in administration) (the "Company") has been successful.
As a result, DRL has obtained the required consents necessary to amend certain provisions of the trust deed dated July 2, 2014 between the Company, the Subsidiary Guarantors named therein and Citicorp Trustee Company Limited, as amended, supplemented, waived or otherwise modified from time to time prior to this Consent Solicitation (the "Trust Deed") and, subject to receiving consent of the other parties thereto in due course, to amend certain provisions of the intercreditor agreement dated March 29, 2019 between the Company, Lucid Trustee Services Limited (the "Trustee"), GLAS Trust Corporation Limited (the "Security Agent") and various creditors of the Company named therein, as amended, supplemented, waived or otherwise modified from time to time (the "Intercreditor Agreement") as set forth in the consent solicitation statement dated September 3, 2019 (the "Consent Solicitation Statement").
Capitalized terms used in this notice and not otherwise defined shall have the meanings given to them in the Consent Solicitation Statement.
The Proposed Amendments were sought to (i) permit the drawing of a further £50 million of secured indebtedness by a member of the Group and to allow some of its indebtedness to incur interest that capitalizes and (ii) elevate some or all of the Secured Hedging Liabilities to be paid on a super senior basis, prior to and senior to the liabilities owed to the New Money Facility Agreement lenders, agents and arranger and to the liabilities owed to certain agents including the Security Agent and the Trustee.
The adoption of the Proposed Amendments required the consents of Holders of at least a majority in aggregate principal amount of the then outstanding Notes voting as a single class. A majority of Holders voting as a single class have submitted their consents prior to the Expiration Time. As a result, the Proposed Amendments, to be implemented by the execution of the Fifth Supplemental Trust Deed and the Second Supplemental Intercreditor Agreement, will bind all Holders of the Notes, including those that did not deliver their consent.
Consent given:
https://www.investegate.co.uk/debenhams-plc--irsh-/rns/required-consents-received/201909061301335418L/
It looks like case will be upheld against Debenhams, their lawyers are just focusing on blame game, he wishes, he wants, she is vindictive
Aproval of fees and termination of administration.
To All Known Creditors20August 2019Dear SirsDebenhams Plc (“the Company”) –In AdministrationIn the High Court of Justice,Number 002456of 2019As you are aware,Andrew Johnson, Simon Kirkhope and I were appointed Joint Administrators of the Company on9 April 2019. As set out in the Joint Administrators’ Proposalsdated 28 May 2019,in circumstances where no creditors committee was formed,the Joint Administrators arerequiredto make an application to court for the approval of the basis of theirremuneration.The Joint Administrators accordingly issuedan application in the High Court for the basis of their remuneration to be fixed in accordance with the Insolvency Rules 2016. For informationcreditors should be aware that the Joint Administrators’anticipate that their remuneration will not exceed the level of the fee estimate set out in the Joint Administrators’proposals.In addition,the Joint Administrators (as partofthe same application)are seeking their discharge from liability pursuant to paragraph 98(1) of Schedule B1 of the Insolvency Act 1986, suchdischarge to take effect 28 days after the date on which the final progress report is issuedto creditors of the Company. A preliminary hearing of the application has been listed for 16 September 2019 at 12.30pm.A copy of the application notice is available at https://www.fticonsulting-emea.com/cip/debenhams-plc. Acopy of my witness statement,filed in support of the application,is available to creditors on written request to the Joint Administrators using the following email address at debenhamsplc@fticonsulting.com. Should you have any further queries please do not hesitate to contact Nicholas Rollings of this officeusing the above email address oralternatelyby phone on 020 3727 1135. Yours faithfully,For and on behalf of the Company
https://www.fticonsulting-emea.com/~/media/Files/emea--files/creditors-portal/cip-emea-public/debenhams-plc/letter-to-creditors--application-to-court-20-august-2019.pdf
https://www.rns-pdf.londonstockexchange.com/rns/0320L_1-2019-9-3.pdf
Yet to read this, but it might mean another payment to bond holders.
"What is your view on the comments made in the CityAM"
Intended to sell newspapers.
They were in an impossible situation, so mistakes get made. That's not a crime, it's part of the risks an investor takes on. The fallibility of Boards. They acted to protect the business, so that it was a going concern. Boards are there to provide returns to shareholders, but also protect creditors. On the last roll of the dice Boards will flip and do everything they can to protect creditors and try for an ordely administration. I just don't see anything illegal has transpired. Was it a perfect? I doubt it. Was there an easy option, yes and they did it. Do I think some of the lenders held the debt expecting this outcome? Yes, I'm sure some did. Is any of that illegal? No. It's no different to specualting in the equity of a company. Just with a bit more security. It's still risk capital, but unlike equity (which is all risk capital) it comes with some greater seniority when a company hits the buffers. Collusion will be difficult to prove, so unless there's an obvious break of the Insolvency Act, not just cycnical misuse, then I can understand why Debenhams are confident about winning the case. But as they say, you never know.... and don't invest more than you can afford to lose.
Good comments as ever Devon.
What is your view on the comments made in the CityAM article [posted again by me recently]? That article is pretty damning on DEB's BOD?