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With ARCM reportedly (retuers) wanting to auction 200 million their PMO debt is it because they can not now cover it with a short they deem sufficient? Having now/recentley reduced it to 6.19%. Could not increasing that short again have been part of the deal / negotiations held with PMO and ARCM. If PMO can not settle that 200mil nor cover it then they may want to reduce their exposure?
Thoughts
Rgds Sft
Hi Quintus, no longer. I got shot of my small holding this morning on the news about ARCM trying to sell debt.
There's a very long process, but as I've said before, I question who owns a business when it has so much debt that it's struggling to service it and it's in potential breach of it's covenenants. Reuters are reporting that one source says they might struggle to sell the debt, that's never a good sign. So, I've bagged a small profit and moved on. It remains an interesting conundrum of what happens next.
You are right debt holders can make a play for assets as an extreme measure, but you also have to ask who; wants to own an oil company at the moment? I'm sure the fixed income desks of the banks don't. There's ways around that, exchange some of your debt for equity, once you've pushed existing holders out, and then do a trade sale with lower debt on the books. There are of course parties who've indicated they would be interested in buying it with the debt reconstructed. I bet they don't care who own it at the time. As I keep saying all speculation, and I'm in the dark as much as anyone. The one thing I do know, is most people think investing is about making money, investors who been doing it for decades know it's the opposite. It's about not losing money. LOL
Good point :)
"Fraudulent Hedge Fund"???
Why, are there any legitimate ones ?
Devon,
You write that as a debt holder you have an interest in the future of the company. That’s not entirely the full story ... debt holders can make a play for the company’s assets and guess who stands in their way right now ... equity holders. So what needs to happen next?? ; )
All in my opinion only.
I would be glad to see them going.
Well as I said @SauerKraust, it's only a possible scenerio and so it's only a possible explanation of what he means.
No one really know what's going on.
I think they want to do what GGPL did on Friday - spook as many investors as they can, to sell at lowest price possible and than someone will acquire all those shares
I think they want to do what GGPL did on Friday, spook as many investors as they can at lowest price possible and than someone will aquire all those shares.
Devonplay your constantly trying to incite fear, who do you work for??
""Everything points to shareholders being wiped out ".
Because they appear to be concerned there's going to be a credit default at some stage and they've undertake not to add to their short positions. As I understand it.
Hence, there's no hedge against the short, and they can't hedge agains the long debt position with a short.
There's no way of knowing, but if a major holder of the debt wants out then it might to spook other holders, so they may be come very reticent about the company taking on more obligations . That could mean no deal and we get closer to a creditor call for their cash, cash PMO don't have.
All speculation of course, we don't really know what going on, so it's an explanation to your question. A possible scenario.
Happyinvestor you really are a silly troll aren't you
Deramper's guess, SK ;)
ARCM:
1) Don't think they will get back all the principal on their debt; and/or
2) They expect debt for equity conversion to be required and do not wish to hold equity; and/or
3) Discussions with Chrysaor involve creditors taking a significant haircut and ARCM want to test the market to see if they can get a better deal for their debt.
Everything points to shareholders being wiped out imho. Hope I am wrong. This share has caused too much suffering already.
I would not be surprised if they were in Fincet leaked files
Arcm at it again, trying to undermine the company. Who would buy the debt if they have doubts about the refinance. Sounds to me they are trying again for negative publicity to try and get what they want.
"The Chrysaor talks have not touched on the possibility of
Chrysaor acquiring Premier, sources have told Reuters
previously, adding that it would not engage in such talks while
Premier remains saddled with current debt levels."
Interesting wording - suggests that if the current debt (partially or fully) was refinanced C wold be interested possibly - i still think more to this than being let on. Of course it would benefit C to have the debt already sorted and then buy it and take advantage of tax credits.
whilst expected - of course they would cash out now, one of the best shorts in history !! does this also possibly signal more credibility to a deal with C ?
.