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Last year?? Let's talk about this year then... 1. material inaccuracies within the issued prospectus 2.the suspicious and highly questionable write-down of the Barda Rash 3.A deliberate and sustained effort of destroying shareholder value in the company over the last twelve months; 4.Evidence of aggressive shorting activity In 2015 decimating the share price. Please note that there was an extremely sensitive period for Afren when they were engaged in potential M & A talks with Seplat PLC. 5.Conflicts of interest and concerns regarding non-independence of Afren board. 6. Production issues 7.And MUCH MORE This will have long-term ramifications for the reputation of London market besides being a life changing tragedy for many hundreds of retail investors and their families. The destruction of this FTSE 250 company in a matter of a few months is the folly of breathtaking. THIS YEAR! Afrenlegalaction Yahoo Com
Enterprise Value (EV) DEFINITION OF 'ENTERPRISE VALUE (EV)' Enterprise Value, or EV for short, is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. The market capitalization of a company is simply its share price multiplied by the number of shares a company has outstanding. Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. Often times, the minority interest and preferred equity is effectively zero, although this need not be the case. EV = market value of common stock + market value of preferred equity + market value of debt + minority interest - cash and investments.
Doesn't look like any chance of survival on this one. Learnt lots more as time has gone by. Will still be looking in and seeing what the latest is but think this is the end now. Wish you all better luck in other shares you may invest in. I know I need the luck. Atb
The US$200 million net cash proceeds from the issuance of the PPN will be deposited in escrow, to be drawn down by the Group over the coming months. Withdrawals from escrow are required to be applied broadly in accordance with agreed financial forecasts and are subject to an agreed drawdown schedule and the Group’s continuing compliance with certain default conditions. The PPN would be repayable by April 2016 if not refinanced through the Recapitalisation. so they probably had to ration the money. still had $100m in the bank on 31st March 15 results.
In legal terms yes but in practicality bondholders know that is never going to happen. As I'm sure you will recognise the value of any asset is what the market is prepared to pay. So in the event of a takeover there is no way Seplat, or any other company for that matter would offer face value when the asset is trading at 30% of par. I would have thought that was pretty obvious to be perfectly honest. Would be great if you could reply so that Isengard is kept informed.
YC, Now who is the novice? lol I filtered you but the thread only showed up to me because Peteb corrected you lol.
true. but they refinanced end of April I think. without any dilution etc
Afren has already burnt the $200 million cash injection from the bond-holders. I think you need to add this point as well as the multi-million dollar question of where on earth Afren revenues are disappearing. Since January, even with the lower production figures of 26000 BOP, Afren should have generated somewhere in the range of $100 - $150 million So, we are being asked to believe that Afren has splashed around $300 - $350 million in the first half of this year and there is nothing to show for that spending? well yes, water problems and aministration...maybe the advisers can tell us!! Opinions?
funny how KMR get to refinance without any fuss or bother.
Bondholders............Good Luck.............(sarcasm)
in regard to to the notes. Guarantees The Notes are guaranteed on a senior basis by: Afren Nigeria Holdings Limited Afren Nigeria Holdings (Nigeria) Limited Afren CI (UK) Limited Afren CI (II) Limited Afren Cote d'Ivoire Limited Lion G.P.L SA Afren Energy Resources Limited and Afren Okoro Limited The Notes are guaranteed on a subordinated basis by Afren Resources Limited Collateral The notes are secured by assets of the Group, with first priority liens over certain assets related to the Okoro field and second priority liens over certain assets relating to the Ebok field which also secure the Ebok Reserve Based Lending Facility.
Over the past 5 months you have been very quick to admonish bullish sentiment..... who could ever forget your ubiquitous magic oil posts. However in your self-proclaimed role as market commentator / data-validation expert you idly stand on the sidelines choosing to ignore the drivel posted by Isengard7.
ebok got flooded which halted production. Nerfa is just Afren backwards LOL
i can't see them getting it all back
over $2bn worth of debt from one of the presentations US$ mm Pre‐Transaction Facility Amount Amount Margin Maturity New HYNotes ‐ 274 7.5% cash / 7.5% PIK Jun‐17 Ebok Facility 300 313 4.8% cash(6) Jun‐19 Okwok Facility 50 51 9.5% cash Jun‐18 OML26 Facility 100 100 6.5% cash Feb‐18 Leases 78 78 2016 Notes 253 ‐ 2019 Notes 250 ‐ 2020 Notes 360 ‐ New 2019 ANotes ‐ 350 9.1% PIK (2) Dec‐19 New 2020 B Notes ‐ 350 9.1% PIK (2) Dec‐20 Other Liabilities(1) 190 190 Total Net Debt 1,581 1,707 Cash Injection (33)
Peteb, thanks for putting me back into reality lol
Isengaard your theory isn't far off. The board knew no vote was coming and Alan Linn did state that if we vote no then the company goes into administration. Now admin is good for creditors as at this stage the administrator will focus on getting their money back. creditors will agree a DoA as they want the assets. However afren will not be a listed company it will survive but go private and will be renamed. The assets will be ringfenced within new company. Hence Alan Linn is in a win win gets to be part of the board of a solid company. The new company will be debt free and profitable as BH and CREDITORS will be given shares in Nerfa LTD. Unfortunately shareholders will get squat, zilch, nothong unless admimistrators give control back to the board. This is not easy as it has to be done through courts. My question is a simple one but no one can answer. Did afren plc stop working and producing oil since January 2015. I can't believe even at $50 poo we don't have any money.
All - be very careful listening to this guy who to be perfectly honest is a novice. "Afren is too expensive to buy for them because of the Debt" the market value of Afren Debt prior to suspension was probably trading at around 30 cent range if not lower and this would have been significantly lower than when Seplat first appeared on the scene so the Enterprise Value (theoretical takeover price) is now much lower.
The general will get control of afren once the company is dissolved and renamed to Nerfa. I guess in 10 years time we can buy shares in the newly formed Nerfa plc when it floats. just hope ipo isn't more than £1 sp
They saw No vote was coming. they decided to put the company into Admin so they can do the restructuring without shareholder approval. I am sure there are flaws to this theory but this is what I am thinking now. Assets get returned to the government. so can't see how bondholders or creditors get their money. liquidation would be a waste of time and nothing to show for it either. http://www.ft.com/cms/s/0/212dd6ee-3ac0-11e5-8613-07d16aad2152.html#axzz3hyZCOeXr i suspect administration is just a way to force the restructuring through. bondholders want the equity.
And in admin, this is still a substantial amount of money per day. Why can't they defer debt payments till oil recovers what is stopping them. Come to some sought of arrangement its not as though it won't be payed. Must be better for the creditors than admin?
if the company get's wound up and liquidation follows, Seplat can pick up the assets very cheap. Afren is too expensive to buy for them because of the debt.
kb123. It's the other way round. They reserved the right to make an offer WITHIN the next 6 months - so until 13/8. At least that is what the RNS said.
Who knows if Seplat will make an offer. I think they could not make an offer within 6 months which 6 months will be up on 13th Aug. I'm hoping a similar roc oil approach.
Some posters might find the attached guide useful, although it'll take a couple of readings. Its a difficult subject and the information is biased towards knowing the rights of management and creditors rather than shareholders. There seems to be a lot of latitude in the type of administration....and there seems to be precious little information on how and when shareholders are given information.....although Littlebilly's info about a report issued from Alixpartners after 8 weeks seems to be spot on. http://www.companyrescue.co.uk/company-administration/detailed-administration Interesting that it seems to be possible to use this as a backdoor to our old friend, a Scheme of Arrangement.