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At this moment in time, it is the creditors who own the keys. Fosun, rank behind the creditors.
I don't understand the basis of your argument that the Banks will allow Fosun to keep some value for nothing and the banks take pain.
I have outlined that I think there will be a debt for equity swap first, giving financial creditors majority (90%+ of the equity) and then new money requirement needed - £200-300m of the £750m in equity) and this new equity may be provided by Fosun.
Can you outline how you think it is going to happen, step by step because yes, I can't gt my head around it.
Jj..not relevant here Fosun have a big stake and TCG screwed up the airline sale so how are the banks going to their Euro 1b back?..An equity swap is useless unless Fosum plan to buy it off them..As I keep telling you for the umpteen time this is not Debenhams, Carillion, Monarch or Flybe..its a very different scenario..which you csnt get your head around..because you dont know who the real stakeholders are and who actually holds the keys!
Banks and financial creditors in general have taken over several UK companies in the past in debt for equity swaps.
like: Debenhams, Next, NTL & Telewest (Now Virgin Media), Drax, British Energy - Towergate, Gala (historically),
Banks will take a majority stake if it is the only way to get a recovery on their debt.
If we think the Company is insolvent or negative equity - both of which could apply here, then debt for equity swap is necessary in order to continue trading.
@hk85...theres nothing anyone can do about it really..maybe they need a majority share holder vote to do this and they will need a slice of pie back..and why would banks want a majority holding on a loss making tour operator are you barking mad they lend they don't run travel coys!
Paul - Are you invested here? When you are proven wrong will you just disappear off again?
It’s a done deal why don’t u wanna realise it. By the way i took a punt on Thursday and open a long spread bet position at 5.08P for £100 per every pence movement so I’m better off seeing the SP spiking but ur ideas are delusional just give it a break
@HK85...I believe I am right and you are very wrong but we will see in due course!!
@Paul seriously mate just try and give up on all those fictional ideas of yours, you’re giving other SH hope that doesn’t exist.
The RNS was very clear existing SH will take the bitter pill by significantly dilute them. It’s as simple as that. Read the RNS and watch the video!! The TO will be be privatised with its majority to Fosun and minority to the lenders. As for the airline, banks will be the major holder while Fosun and all other SH will have a minor stake in it and it will stay listed as the banks won’t be willing to buy the business and Fosun can’t own an airline due to EU rules. They reason they did it like that is not because they care much about other SH it’s simply because Fosun has a massive interest in the business and doesn’t want to buy it outright, the second option is for the bank to call their debt which will push TC into admin and Fosun will loose their stake just like any other investor.
They are literally throwing a mini bone to all SH by injecting more cash and D4E, and there’s nothing anyone can do about it remember PE hold 20% and Fosun holds 18%, have you heard anything in the media from the 62% owner if the company who are II’s.
@sajid.. that's because legal action may follow..'after'...the details come out.
Paul, nothing came back from google search
Well calamari, with a pi base of anywhere between 20,000 and 200,000 shareholders, a £10 per shareholder goes a long way in a fighting fund. The hard thing is someone pulling it all together :-(
Thanks keep us updated we all deserve compensation
@Calamari..plenty of legal suites on the USA..there is one already in process against Metro Bank..
Dan..once appointed assuming the legal triigernpulled before TCG is delisted they i.e the lawyers will be reaching out to All investors, more money for them..do no need to worry on that front, just Google tcg from home to time and lawyers if involved will pop up asking..'If you are or were a TCG investor you maybe entitled to compensation as blah blah blah LLC USA legal team have been appointed I the upcoming Class Law suite versus TCG & Fosun"
That’s why asking if there’s any on here or something we all can help
Paul, do you know of a recent example where an institutional investor has sued a board of directors of a listed company, taken them to court and won? I can't think of any.
@calamari..agree..it was indeed a shocking inditement that the Board lied on the recent RNS, that they had received numerous bids, which implied a strong possibility if a sale at a reasonable price..Unforgivable really the board needs to go, not trust worthy and not up to the job..Fosun after gaining control will no doubt put its own turn around bias parachuted in place, while OF and chums face the well deserved axe, well over due to be honest with the readers! But hey ho it is what it is.
As for legal challenge I expect the institutional investors with tens of millions at risk will be mulling over this one, especially those usa funds, and perhaps getting ready to pull the trigger.
That's why the reputational risk to Fosun is huge and much bigger than a few hundred million they may need to fork out to buy off the investors
Well Dan, how much can you afford to pay? Good lawyers ain't cheap. In fact even bad lawyers ain't cheap, good ones are expensive.
To late for honest answers we been mislead and need take it further any one no how to take it further
It sound like the CFO just gave an honest answer. He was certainly correct about where the share price would go.
Saj - I am not defending CEO in any way whatsoever. I have been one of his biggest critics for many years, the way he has lead this company into the position it is now in.
Did you also see how sorry he was for the share dilution or was he just eager to spend more money?
Having been an investor in various stocks for decades I have seen companies managed well and badly and this was worse than bad, it had its head firmly stuck in the sand. The signs have been there and I have been aware of them as you will see from previous posts.
I never just take the words of the BOD or CEO as they are always going to big up their own company
However I wish remaining shareholders all the luck as your investment has not been well managed
I believe personally it is incompetence to the highest level
Quisty, I understand your point of view. I think with the exception of the day traders on here and their short positions you have real people that stayed invested rightly or wrongly on the strength of the RNS and PF ‘s podcast with major investors and the trade press back in June.Questions were asked from the floor regarding the 300m and the airline sale. The turning point was the announcement of the Fosun 750m and the question put in the video on the 12th July from the CEO to the CFO regarding where he thought the share price would go. Replied single figures. There was a limited time in minutes before the stock lost 55% off the closing price. Prior to the collapse PI,s and staff held £290m worth of shares which represents 20% of the company. What agenda was the CFO following? Real people with savings, Isas and pensions are caught up in this disaster and need answers. As a CFO he would have known that immediately when that video was released the share price would crash, if that’s not market abuse I don’t know what is?
manchego ... another shameless ramper
loves a good story
dullards = those who have facts
Paul. Your posts are interesting and thought-provoking. Infinitely better than the usal dross on this board. Don't be put off by dullards.