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Jennifer, finally someone who talks sense. Pmo is in a very messy situation. Not entirely their fault. Just a combination of unfortunate circumstances. Really hope they do get everything sorted out but whatever way you look at it, for shareholders it’s going to be painful in the near future.
They may yet again kick the covenant test date down the road, but then again they might also find the "grow the company" bit kicked off the pitch for them. I think your are right to be concerned Jennifer. There's too many "Whatever(s)" still floating around. It's not difficult to imagine the outcome being one where the business is configured to service it's debt pile in a way it's creditors approve of. If that's the case, I might join the party again knowlng the company will be geared towards my interests and whatever equity capital is left will be the first loss risk buffer. We should have a better idea in a few days.
Whatever, I will still sleep easier when we get a rns confirming debt holder agreement or a covenant waver because until then it is still a possibility.
Jennifer - PMO is trying to buy assetts and grow the company, I don't think thats a sign of bankruptcy is it lol if that was the case the RI would be solely for paying the debt down.
LOL that's OK Jennifer, there's a Lady Jennifer in that trader forum.
Yes, it does make it very clear, and the Note in the Accounts.
It's going to be interesting to see if there's an RNS on the 30th/1st. There must be one, I'm sure institutional investors will be expecting an update about the company's financial position even if some retail investors don't think it matters.
LOL
I have no idea what that is but definitely no!
Thanks devonplay, that makes it quite clear.
Hi Jennifer, I was holding PMO1, but made it out the door with a profit. I can't remember which RNS I made this clipping from:
"In addition, since 8 July 2020 the Group's leverage and interest cover financial covenants for the testing period ended on 30 June 2020 have been deferred under the terms of the Stable Platform Agreement. Without the deferrals contained in the Stable Platform Agreement, the Group would have breached the financial covenants contained in its financing agreements in respect of the testing period ended on 30 June 2020. In the event that the Proposed Refinancing is not agreed or finalised by 30 September 2020, if the Group is unable to obtain a further deferral or waiver of the financial covenant testing for the period ended on 30 June 2020, there is a risk that an event of default may arise prior to May 2021. If such an event were to occur, the requisite majority of the Group's creditors would have the right to vote to declare the Group's debt liabilities immediately repayable. "
This is taken from the last financial report:
" in the absence of any
mitigating actions, a breach of one or more
of the financial covenants during the 12
month going concern assessment period
would arise and the Group’s financing
facilities would be classified as current
liabilities in subsequent reporting periods. "
Classifying the debt as current liabilities in this case just means repayable on demand!
As I said I'm pretty sure this won't happen but you have your head in the sand if you are arguing this can't happen!
tik tok 2 days till month end.
They cant demand the debt is repaid in 30 days, it means there could be financial penalties is covenant is broken .
Get a grip
It doesn't mean they will and I'm pretty sure they won't but it's foolish to pretend the threat doesn't exist. Once covenants are broken the debt holders can demand repayment of $2.4bn of debt and pmo would have 30 days to comply!
What do you mean we are 3 days from Being taken over ? Don't you mean breaking covenant, doesn't mean they take the company FFS .
Come on do little research
Talk where? Please provide a link! We are currently three days away from debt holders being able to take over the company without a deal and I'm pretty sure they are not holding out for a better deal for shareholders!
That will boost our current SP misery somewhat, in turn should lower dilution considerably .
Come on Tony pull something nice out of that bag of yours.
There's now talk of the cash call being reduced if PMO succeed in reducing the BP purchase !