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Ah well.... we'll see.
Care for a wager? A token? £100 to a charity of the winner's choice?
The company has said it is selling off the business, it has completed the legal case with S&G and has cash. As far as I am concerned they need to honour the intention to redistribute the remaining 10p as soon as possible.
I keep saying its all there in the words.
The majority of shareholders have also read the word "intention". Not "promise" or "irrevocably commit on pain of death" (which they preferred to read into it).
The company has had 'one or two' challenges to deal with in the intervening years...and continue to do so. As such their intentions/hopes/expectations have also had to change.
That's life: the good news is RT is no longer involved and the business did not go bust as some predicted.
ATB
GS
QPP RNS 02/11/15
Quindell Plc (AIM:QPP.L) announces that, pursuant to previously stated commitments, the Board of Directors of Quindell plc (the "Board") has decided to pursue a two stage distribution of 100 pence per share, with an initial, Court approved, capital repayment to shareholders of 90 pence per share and expects to seek Court approval for this to be made to shareholders in December 2015 at a total cost of approximately £415 million.
In consultation with its legal and financial advisers, and following detailed internal and external consideration of the Company's actual and prospective contingent creditors, the Board considers that an initial, Court approved, capital repayment to shareholders of 90 pence per share is both prudent and appropriate. The Board's intention is to make the second stage payment to shareholders of a further 10 pence per share in cash following the anticipated release at the end of 2016 of the £50m (which would represent approximately 11 pence per share) warranty escrow put in place as part of the disposal of the Professional Services Division ("PSD"). The Company will also seek to make this payment to shareholders in a tax and cost efficient manner.
I think it’s safe to assume that the majority of shareholders believed they would receive the full £1 return.
WTG need to update shareholders, are they going to return the extra money or not?
Like I said: precise words count.
ATB
This where I disagree, we were offered £1 a share as part of the deal with S&G. 10p was kept in an Escrow account for any future settlement relating to the deal. This was due to be paid one year after the deal. S&G managed to convince a judge that they had a claim to the Escrow monies and he agreed that they could have and the planned pay-out was held over. This has now been settled and the monies that paid for the fund came from the deal, need to be paid in the same way the 90p was distributed. This my belief and as you say we will find out in due time what will happen with it.
It was held in escrow pending the outcome of the SGH claim, so that either company would have unhindered access once settled.
It now belongs to WTG. Who will, I believe, disburse it to current shareholders.
Whatever we believe, we'll be informed in due course on what will happen to it.
The meaning of an Escrow account:
escrow account
(1) A separate bank account for keeping money that is the property of others.
If it was an asset of the current company it would not need to be in an escrow account.
The escrow account is not an asset of the current company it is held in trust, paid for by the QPP shareholders to cover any further costs. These are now settled and will be paid to the shareholders that were shareholders at the time.
otemple....
You see now why thios non-debate continues, don't you! How much plainer can it be made?
OK Grumpy - I get your point but is still not crystal clear -
in summary what you seem to be saying - £1 was announced with 10p of that held in escrow - so it's as if it has gone ex-div with the 10p in escrow held back for the original shareholders on the register at the time of the 90p distribution - the 10p does not belong to the company but was held back pending the court case
I'm not convinced either way, but I am somewhat swayed with your argument but will sit on the fence and await my cheque nonetheless - thanks on your patience GS
Funds in escrow are owned by the company and the company is owned by the current shareholders, not previous share holders. What a strange (non) debate this is!
Yes: I agree.
People who own shares on whatever date is announced, will be entitled to whatever is announced for CR2. Whether this will be just the escrow or also HS sales proceeds or another calculation remains to be seen.
For me, the most interesting question is whether to buy more once it's announced. All comes down to numbers.
Yes Grumpy I have read it a number of times and I'm pleased it's clear to you - I'm afraid it's not at all obvious to me !
"The company requested 90p/share to be approved: it was and it was returned to US. "
By US I presume you mean the shareholders - the remainder held in escrow - that escrow is an asset of the company - if you subsequently elect to sell your shares then surely the buyer assumes the risks and benefits of those assets and the seller has no further entitlement - unless specifically predicated (as far as I can see it hasn't been !) - I await the distribution with interest
The company requested 90p/share to be approved: it was and it was returned to US.
There was then a further sum held in escrow. This has now been reduced from £50m to £39m so you can figure out how much/share its worth.
The eventual strategy is to sell up assuming there are acceptable offers.
Thete will then, I believe, be further returns to shareholders. I also think it's possible the company will combine multiple sums into a single cash payment. This will minimise associated costs from court approvals, administration costs, distribution costs etc...thus maximising the value to shareholders.
At least that's my hope.
Once they decide how best to proceed I believe we will get an RNS defining the terms as well as a date at which one must hold shares.
This is a totally separate issue to the original Capital Return, regardless of individual hopes/wishes/claims.
All just my opinion....
Ive red the RNSS. Grumpy - are you saying we wont get a refund of all winnings in all companys we have sold for the last 5 ? years? What about dividnds for shares I sold 4 years ago. Am I still going to be able to claim those. Its so confusing. THANKS
Read the precise wordings of the relevant RNS.
Nothing ambiguous about them.
I'm just glad I'm not the only one confused about who's going to get the capital return - there seem to be some on this board who presume their view should be blatantly obvious to all - it's the escrow bit that appears to obfuscate the issue
Whilst my opinion has some sympathy for both camps (makes no difference to me because my shareholding hasn't changed) my view (fwiw) is that the escrow return will go to existing shareholders - alternatively I think RobTerry may be needing a bit of extra bung to top up his benefits - so possibly some will go his way as it may be in the fine print !
Rbacker I assume this rule apply to all shares? It is grate to here about these rights that shareholders have even 5 (or more?)) years after selling. Patience patience patience. Perhaps you can post a link to the legal profs giving this advice. I owned some shares where I sold and 8 years later it was worth trillions more!!! THANKS Good SIREEE. Let us all know legal professionals
There is a number of legal professionals that strongly disagree.
The funds from the SALE will be back in escrow for years if anything other is suggested then a final payment being made out to patience shareholders at the POINT OF SALE. Good day sir
"The Escrow was created with proceeds from the sale to S&G, keep up."
And it will be paid to shareholders at a date yet to be specified. If you don't own shares you get nothing, nada, zilch.
Wake up.
The original Capital Return, upon which Court Approval was sought and given, was reduced in order to show prudent decision-making.
I'm sure that in due course there will be an RNS explaining what the new intentions are. There is also the imminent sale of HS to consider, along with associated income.
Dividend payments are paid out of current profits. The Escrow was created with proceeds from the sale to S&G, keep up.
Some should read the precise wording of the original approved Capital Return RNS.