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When Is Chris starting with Samancor. Had faith with this guy. But as most CEO'S in AIM prove they look after themselves. Chris informed me he was also a shareholder. Very funny, & What was your salary no reply.
Further to the announcement released by the Company on 18 March 2016, IFL announces that the Amended Business Rescue Plan ("Plan") in respect of its South African subsidiary, International Ferro Metals (SA) (Pty) Limited ("IFMSA") proposed by the Business Rescue Practitioner ("BRP") and available on the Company's website, has been unanimously approved by creditors. The BRP will now seek to execute the relevant sale agreements with Samancor Chrome Limited ("Samancor") as quickly as possible. The amended Plan provides an illustration and estimate of the potential distribution to creditors of IFMSA, and based on the Plan's distribution schedule, " it is not likely that IFL shareholders would receive any distribution from the conclusion of the business rescue process".
It would seem it was declined in favour of samancor. I suspect that it will be another six months before we have a final resolution. We will be left with a shell company as all of the assets will have been sold off. There is then of course potential to do something else with this shell, similar to FTE.
Mohi, I can't see any detail either and fully agree that the creditors win either way. My main point is that, it isn't a done deal yet, the company has not yet been sold.ever the optimist, you never know shareholders might even get a little bit, albeit nothing like what many have invested.
I Can not find the detail of Kermas international limited offer but it seems the creditors do not care about any new offer . ( anyway they get paid 100% based on samancor offer)
There is a second offer on the table, please see the Ifl website!
Source: http://www.proactiveinvestors.co.uk International Ferro Metals has agreed an offer of ZAR720m for the sale of its assets to Samancor in South Africa. The offer comprises ZAR650m for the business assets of IFMSA and ZAR70m for certain receivables of Sky Chrome though a number of conditions remain to be satisfied before completion. Eg. competition authority and other regulatory approvals and consent from other groups for material contracts. The company will release further details in due course. Debt: IFL had fully drawn ZAR500m debt facility with Bank of China which expired on September 16th this year and financial lease of ZAR58m as of December 2014. The company had a co-operative agreement with JISCO, the Chinese ferrochrome group who hold 29% of the shares. Conclusion: IFL is a casualty of intense competition among ferrochrome producers. The company’s very professional team led by Chris Jordaan and Jannie Muller and overseen by Tony Grey and Stephen Turner have battled falling ferrochrome prices, power supply interruptions, industrial incidents and labour disruption. In the end the costs of running an environmentally beneficial ‘closed’ ferrochrome furnace combined with limited scale has proved too much for the company and its partners. A weaker South African rand is insufficient to offset the impact of significantly lower ferrochrome prices and the cost of running the business in South Africa. *SP Angel act as joint broker to IFL alongside Numis Securities who act as lead broker
Looks like a possible sale for 720 mill rand, little or nothing left for shareholders at the end, once all creditors have been paid. Not a good day for us I'm afraid!
BRP is out.
nm
Today's RNS says, not much really.
Agree with your observations. The info below is from their website. What a mess! Home Media Centre Press Releases 2015 Update on IFMSA Business Rescue process 15 Sep 2015 In relation to the Business Rescue process of IFL's subsidiary, International Ferro Metals (SA) (Pty) Limited (“IFMSA”) a meeting of creditors has been held with the Business Rescue Practitioner (“BRP”) and the following key matters were discussed at that creditors' meeting: The BRP informed the creditors that, based on his findings to date he considered there to be a reasonable prospect of rescuing IFMSA. The rescue would most likely entail a sale of the assets/business and/or equity of IFMSA. The BRP also informed the creditors that there are currently a number of interested parties. However, details of the potential bidders and possible offers were not provided. The BRP envisaged that a bid process would take two to three months to implement, whereas pursuing the currently interested parties should accelerate the process. In order to allow sufficient time to finalise the bid process, the BRP proposed a motion to extend the date for publication of the Business Rescue Plan until 30 November 2015, which motion was passed by the requisite majority of the creditors. It was resolved to establish a committee of independent creditors. The committee's role is to consult with the BRP in relation to the implementation of the Business Rescue for IFMSA.
Trading in the shares has stopped. They are in a bankruptcy protection scheme, which gives them room to sell the business at a better rate than a bankruptcy sale. The process will take another 2 months at least. Any cash due back to ordinary shareholders will come through your broker. (But ordinary shareholders usually come last in the queue of creditors) There are 3-4 bidders looking to acquire the assets. However many bidders, my opinion is they won't offer much as the iron ore market is in a downtrend and commercial conditions in South Africa are poor. I'm not sure about taking legal action but unless there was fraud my opinion is we're unprotected. Does anyone else know anything? PS: Brokers such as SP Angel and Numis should be called out for keeping repeated BUY recommendations on the shares, especially when all they did was fall since March 2014.
For those who put a fair amount put in to this, what measures are there to receive any form of compensation?
Ockerhillian Do you feel this is unusual? Surely IFL could issue more shares to keep the charade going....
Just 7 months ago great optimism. http://www.proactiveinvestors.co.uk/companies/news/66596/sp-angel-sees-value-growing-at-international-ferro-metals--77707.html
Has trading stopped with this lot, no shares exchanged for a week
...ok...the management team prove themselves to be total idiots...again...so nothing new...I haven't seen a more clueless management team in my life...and believe me...I've met a few "village idiots"...what a "turn-around" that was....everyone saw this coming a mile away ...and I am starting to believe that these idiots got paid R20m a year to ensure that we end up where we are today....anyway...I think this is probably one of the best pro-active decisions that they have made...I can only guess that they have been advised by competent advisors, because they are far too "clueless" to have made a decision like this by themselves... So let' s see what their advisors can accomplish in selling this...over R2.5 billion of assets, R500m of debt...and they are receiving circa R2 billion of revenue a year... so...if I was a major ferrochrome buyer and I want to get vertical integrated to cut cost...it would make sense to buy IFL's assets (net R2 billion) instead of paying R2 billion for the end product for one year (based on say 200,000 tons)...so the question is...at what price will Jisco, who is the largest shareholder, let this one go...they have already a strategic 27% shareholding...so all they need to do is acquire a few million more shares from one of their strategic SPV's to be bale to make a offer themselves...strategically it makes perfectly sense due to the potential chrome ore export levy's which is on the horizon in most countries...on the other hand, there is also a lot of synergies if it is merged with say other ferrochrome producers in the same area and some competitors are still augmentation their current production to enhanced the benefit of economies of scale ....so bottom line...don't write this off...too quickly... shareholders have spent over R3 billion the last 12 years to get the company where it is today...competitors are still paying R1.5billion for new smelters and the company has only R500m debt at this stage...the fact is that it is too small to survive by itself....so let's get it acquired by a "bigger player" and move on....the only question I have...why wasn't this done 5 years ago...we could have saved over R100m in salaries for an incompetent management team over this time and the net debt could have been R100m less :)
What a bunch of "Masterbakers"
A case of sitting it out now to see what scraps, if any are left. Total write off, anything back further along the line is a bonus
To all those who bought in....
The Numis recommendation came from La La land.
Sh*T. That was a few days back!!!!!!!!