The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Afren is not in the same league as Range Resources. I'm not a quitter and I am a very successful private investor. If you believe in miracles then dream on.
As far as any potential share value left for shs, I remain curious about what if the SFO/regulatory bodies do look at this and don't like what they see (which leads to criminal proceedings in some form) whether this could in some ways alter the usual Administration approach to the creditor pecking order e.g. (a) could all creditors (incl shs) be treated equally resulting in shs receiving a proportion of any asset sale instigated to pay off debt or (b) shs have an equity stake in any surviving Afren. I wonder if there is a legal precedent for such a scenario ie. Administration where criminal activity has been involved vs Administration where no criminal activity involved?
having seen your comments at RRL bb on 28th April, I can only conclude that you are a quitter who posts seldomly and negatively, but you were wrong there at RRL so hardly someone to listen to here.
We need to keep the pressure on with legal action and media attention in an attempt to kick start the SFO and regulatory authorities to investigate. This is now about justice and trying to bring about greater market transparency and accountability to shareholders in the future. As someone mentioned earlier perhaps with the profile of the libor scandal and white collar jail sentence the chances of something being done (although extremely slim) way be better than ever. Who knows - we must strike when the iron is hot! Let's not give up yet.
It's the end of Afren as we know it. We have all lost our investment here. Let's move on. No legal action here will result in any monies being paid to the shareholders. The Administrators will sell off all the Assets and repay as much of the debt as possible. There will still be an enormous shortfall. The only plus for me is that I can use my loss here against my other Capital Gains and reduce my Capital Gains Tax bill.
Well the first video I found on google on company administration says the company may be sold to the directors. They have been trying to get the supposed "worthless" shares every which way could but failed. This whole thing could be just another attempt. They want it, and want it bad. Looks like they could succeed.
We all lost out thanks to those duffheads. However there is a slim chance the administrator will cut costs (heres hoping the adhoc guys) plus look to offload non essential assets and perhaps refinance with other parties as they have extensive contacts. Maybe this might come out just. Heres hoping...
I do agree with you Afren are definitely a Dirty bunch with absolutely no morals.
Q - What is the purpose of the administration? From pwc website: A - An Administrator must perform his functions with the objective of - 1. Rescuing the company as a going concern, or failing that; 2. Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (liquidated) (without first being in administration), or failing that; 3. Realising property in order to make a distribution to one or more secured or preferential creditors. The Administrator must perform these functions in the interest of the company’s creditors as a whole. I just hope Alix are not paid the crazy sums given to Alvarez for the worthless restructuring plan. That would be final nail in the coffin for SH getting anything back.
at $100 was very dirty and things were gloss coated even more. Just the SP held up as margins were higher. Seems nothing was as described. Oil is dirty and IMO Afren BoD were even worse.
Oil is a dirty business now but it wasn't when it was selling at over $100 a barrel?
At least I will have cgt losses to use against other gains!!! Oil is a dirty business..
Thanks father. So that's it then is it Afren is doomed?? We are well n truly screwed!!
no
Sorry this question may have been asked and answered already but I missed it as I haven't been reading this board for few days now. Just fed up with this company and its corruption. Will Afren share ever re-open for trading again after all this??
Agree, anything we got back would be an Xmas bonus :-) Funny, when I met Afren's new COO at the last AGM, he assured me that he wouldn't be joining a company if it was about to go under - wonder upon what info he was recruited (probably the duff info the BH were previously fed). In some ways I'm glad the administrators have been called in as hopefully now we'll finally have someone taking a look through the books who should hopefully do so objectively and will be able to recognise a business that makes money but just doesn't know their a$$ from their elbow. I'd hope the administrators help us to achieve fair value for our assets but we'll probably find they've been paid to find a BOD/BH position at the expense of the SHs too! Let's grab the popcorn and watch this space for now with interest! Andy
Hi Tony! I agree, I was expecting to also see the usual admin lines in the RNS which state that as a result the shares will be cancelled and the company delisted from the market etc! We don't have that here, why?! Don't get me wrong, I believe the SH are now probably totally fecked but what gets me is why/how could the BOD approach the BH, asking for figure X, and even get that wrong?! Who provided them with the financials? I don't hold AL personally responsible for all of this but if I was him I wouldn't be happy as the people working under him seemingly have little or no clue as to the true state of their company's finances and I don't believe they have done for quite some time. Andy
stop prodding the corpse lads - we have lost and after all fees/costs there is fek all wish i never invested here
PART 2 Administration prevents any creditor taking action against the company for recovery, or petitioning for bankrupcy. I am not clear on this but I believe that all debt repayment and interest payments are frozen until the administrator decides otherwise, and this preserves cash in the business. (Correct me if I am wrong there). The administration process provides a window for the administrator to find a solution, sell the company or dispose of assets. Those of us that opposed the BHs offer, were doing so in the knowledge that if the NO vote was won, there may still have been zero value for shareholders. However, in the end the choice was not ours. Shareholders will not now get the opportunity to to vote in favour of or reject any BHs refinancing offer and will have no further say in the running of the company, unless the company successfully comes out of administration. I hasten to add that very few have done that. The company also states that no other Afren subsidiary is in administration or under insolvency proceedings. Therefore it seems the trading operations can continue. Afren Plc own the shares in all the subsidiaries, but it is understood the BHs have pledges over those shares effectively giving them control over those companies. It is unclear what the impact on that situation will be with Administrators now in control of Afren plc, as Afren owns those shares and the shares are company assets. Will the share pledges override the administrators control over Afren assets, or vice versa? We dont know. It is also unclear what impact the Nigerian change of control legislation will have if the BHs try to sell or transfer the assets held in the subsidiaries away from the Afren group, using their share pledge control. That had always been an issue and still is. If that legislation removes value from the assets, then BHs will be at risk of losing much of their debt recovery. Much is still unclear and we require more clarification. As we stand at the moment it may be unwise for shareholders to expect there to be any value left in their shares. In our view the only way there would be residual value is if the sale of assets exceeds the total value of the debt. We do not have any information if that is likely or not. However there are still issues to be resolved. The fact is we are in administration and we need to wait and see where that takes us. Peronally I regret we never achieved a better deal for shareholders. We tried and we lost. There is no shame in that. But we will never know, now, what the BHs final hand would have been if there was no administration. The views I have expressed here are my own, and if there are any material errors in what I said im sure someone will correct me. Tony
Hi guys. Im back from my trip to Wales. These are my own personal first thoughts. I may review some of what I say later when we have more information. This post is likely to be a long one so I may break it into 2 parts. PART 1 I see much heartfelt emotion and anger online over the past few days. We also feel the same that the company has been put into administration after such a protracted period of deterioration. It seems that there were factors at play, other than the recapitalisation offer, that have forced the comany to this point. At first view it seems that means there is now no value for shareholders. I do not propose to dispute that view, or offer any morsels of hope. I would not want you to think there is a way out of this, although in fact that is possible, Once the company is in administration we, or anyone, can have little influence over the administrator. However there are a number of incongruities about which I am not clear and require more information. The company stated that "Material near term reducion in production and delays in some project implementation, has undermined the immediate liquidity position of the company. Following discussions with stakeholders, the company has failed to find any support to deliver a refinancing plan that will enable the company to pay its debts as they fall due". In essence the company forsees it will shortly run out of money as a result of the production problems, and cannot find further finance. The RNS does not say the company is insolvent at this stage, but it seems the BOD believe that is now likely. Please note that the price of oil is now below $50 per barrel and that is bad for us. The BHs have decided not to put up, the extra funds needed. Therefore the company has taken steps to enter administration. This means an administrator is appointed and he has control over the trading, assets and debts of the company. He is obligated to do the following. Firstly to see if the company is still a going concern. To see if the whole of the company can be sold to a buyer to protect the interests of employees, suppliers and creditors. Failing that to start liquidating assets with a view to paying off debt, secured creditors first. Finally if there is anything remaining after debt repayment that will be distributed to shareholders. GO TO PART 2
Andydiff 6 months ago: "Afren to most pi's is looking in better shape now that they have publicly dressed down the parasitic company Seplat who was seen to be preying on her in her weakened state..a state which has also been orchestrated with the help of big money waiting in the wings..so Afren obviously have better options now, brought about in part by the very thing that threatened her viability (the oil price) it is in reverse from its decline and has risen over 30% in the past few weeks. I'm still all in and ignoring the noise as the future looks bright to me. Whether it's 60watt or 100watt bright it'll be better than the candle that is burning now." A major coincidence that Andydiff has chosen to vehemently attack ASOG when he knew some of them were going to be on holidays. I mean, who on earth goes on holidays at what we call the 'peak holiday time'? Adiff is working to retain Linn's shattered reputation. Don't be fooled here. He has an agenda. Most disingenuous paid employee on these bbs. Wow, it really is easy to see conspiracies everywhere. Imagine what it would be like if you invested money you obviously couldn't afford. Hmmph.
Does anyone get the feeling that with SOMA and Libor headlining Newsnight and the main news tonight, along with the maximum jail sentence meted out to this crook Haynes, that this starts a precedent which will pave way for a string of new investigations and prosecutions as more weight is brought to bare by increasing complaints of suffering investors and more vigilant investigators who have previously been reluctant to tackle these ruthless white collar criminals. These people that hide in plain view and who have for so long seemed to operate above the law by protecting and insuring themselves with expert professional advice making their deals difficult and costly to detect...all to the cost of so many helpless pensioners and private investors. The easy ones to rob. The finance industry and stock market both desperately need to be cleaned up. Afren which in my opinion was until only a few months back, sailing quietly into carefully managed oblivion is now set to gather more attention in the coming days putting it into the topical spotlight. No smoke, no fire and there's a awful lot of smoke here at Afren. Hopefully SOMA has just done us all a very big favour. Nite nite all
Hence this is voluntary administration
Parent company is in admin so probably no half-yearly results. the RNS does state no other company in the group is in admin. which is an interesting highlight.
I don't like the hidden message in GG's post. Not for the first time he refers to an immature boy......... what is with him and immature boys ? Very worrying indeed. Isengard be afraid, be very afraid.