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I was always afraid of this. We loose everything!
No satellites no aim all a big scam told you months ago.. gl
Well Rom, being brutal about this...
Getting off AIM and becoming private saves AVN about $500k in costs, according to today's RNS anyways. Although small beer in terms of other costs and debt interest, as the TV ad says, every little helps.
It also frees up management time not having to play kissy-ass with the City.
It allows AVN the freedom not to wash its dirty linen in public, because there'll be no need to disclose diddly squat.
It also allows AVN the related further freedom to operate in unregulated ways.
Although I think that this impending delist a) does the company's credibility no favours at all and b) is a game-ending smack in the teeth for all but the ballsiest of PIs, the fact remains that AVN clearly doesn't have a prayer of raising any meaningful funds - and we all know it needs plenty to keep the lights on - via a share issue.
So although this delisting seems to very definitely screw PIs right into next week, AVN doesn't give a rat's ass. about that. So it might as well go private and benefit from the advantages laid out above.
(I'm still not sure how it's going to go about raising more much needed funding though...)
I don't disagree HIS and being a very private, private equity model does have certain advantages. I've said before that we're here at the gift of the creditors/large shareholders and today has not changed my mind one bit. It does seem to indicate that they're dressing Avanti up to be more attractive [for sale] and give the management an opportunity to be decisive and bold. I cannot really think of a reason to stay on AIM.
Rom...
" If nothing else we are in good company because these creditors also paid a high price for the equity."
Very true. The bondholders involved in the D4E swap effectively exchanged roughly $500m of interest-bearing bond-based debt for roughly 2 billion shares (in back of a fag packet calculations).
So they "paid" 25 cents a share. Call that 20p a share, then compare and contrast to today's share value.
"To flush us away for good they need to relinquish their shareholding too. Maybe they can roll it into the remaining debt but that is far above my pay-grade?"
I can't believe that the institutions are going to look for an Equity for Debt swap, having only agreed the very painful reverse 18 months ago? Plus don't forget that the self-same institutions are still into AVN for a further c. $500m of interest-bearing bond-based debt. Can't see them wanting to advance further borrowing via an E4D swap?
Which then raises the issue that AVN is now only capable of raising funding via private borrowing...
"Due to the conflict of interest presented by their position as representatives of Solus, BlackRock and Great Elm on the Board respectively, neither Craig Chobor, Michael Leitner nor Adam Kleinman participated in the Board's consideration of the proposed Cancellation."
But those voting would be well aware of the view of these 3 Directors and the decision was a foregone conclusion.
Like several here I wrote these off some time ago and the initial collapse today was due a lot to the fact that these shares are basically lock-up paper once we leave AIM (unless you sell them now for a pittance). That is not the same as worthless but you're in the same ball-park from certain view points. The problem for me is that these 3 companies control a high percentage of the remaining debt. If they wipe out remaining shareholders they can harm themselves or open up the litigation route. If nothing else we are in good company because these creditors also paid a high price for the equity. If there is any future value in the equity it will be because of the self-interest of these companies.
Today's news hasn't changed anything really IMV and is more an acceptance of where we are. The Creditors don't really want to run companies and Avanti will be nursed along until it can be sold. Whether there will be anything left for shareholders remains to be seen. They would rather see the back of us but we are (for now) inextricably connected to each other with the creditors holding a lot more share than us. To flush us away for good they need to relinquish their shareholding too. Maybe they can roll it into the remaining debt but that is far above my pay-grade?