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does anyone have any theories as why Proger are holding up the reimbursement of €14.8m Euros?
after all Proger are not a small company, or did I got the wrong Proger?
My only theory ( I am a shareholder) is that their work and cashflow has fallen off a cliff. They are essentially a project management company but as much of Italy and many other countries infrastructure projects have probably been put on hold or paused during the pandemic this must have had a negative impact on their business.
I am also a little concerned that Cadogans nominated director on Proger board wasn't replaced?
Am I correct in assuming that CAD are now entitled to a 22% share in Proger as a result of their default?
greggie
that's what I thought, default would mean Cadogen will have 22% of Proger!!
Proger could be worth a lot more than anyone expected.
looking at their website and with Big international projects, I assume they'll be worth few hundred million at least
Earl. Yes, they are a sizeable project design outfit based in Rome. The conditions appear rather complex but the bottom line stated in the associated RNS in Feb 2019 is quite clear. 22% is the default amount stated as far as I can tell.
My understanding was that the loan was never meant to be repaid and that Cardogan would take a 22% share in Proger. This appears to be a very good deal for both parties. I can only imagine Cad has let the agreement end in order for Proger to default and cad to screw even more percentage share from Proger. Could be a good idea, if a little unethical
Cadogan Petroleum plc (“Cadogan”), an independent, diversified oil & gas company listed on the Main Market of the London Stock Exchange, is pleased to announce that its wholly owned subsidiary Cadogan Petroleum Holdings BV (“CPHBV”) has entered into a Euro 13,385,000 loan agreement with Proger Managers & Partners Srl (“PMP”), a privately owned Italian company whose only interest is a 59.6% participation in Proger Ingegneria Srl (“Proger Ingegneria”), a privately owned company which has a 67.9% participating interest in Proger spa (“Proger”). The loan carries an entitlement to interest at a rate of 5.5% per year, payable at maturity (which is 24 months after the execution date and assuming that the call option described below is not exercised). The principal of the loan is secured by a pledge on PMP’s current participating interest in Proger Ingegneria Srl, up to a maximum guaranteed amount of Euro 13,385,000.
this was from a few years back. Proger Managers & Partners Srl (“PMP”) is in default. Proger Managers & Partners Srl (“PMP”) in turn own 59.6% of Proger Ingegneria Srl (“Proger Ingegneria”) who in turn own 67.9% participating interest in Proger spa (“Proger”). I guess Cadogan could likely take control of Proger Managers & Partners Srl (“PMP”) , if so then they will control Proger Ingegneria Srl (“Proger Ingegneria”) as CAD can exercise control of 59.6% of the voting rights of Proger Ingegneria Srl (“Proger Ingegneria”). They will therefore control the voting rights of 67.9% of the voting rights of Proger spa (“Proger”).
CAD has quite good leverage in this situation...
Peer.... I'm not sure how you work out that CAD could take control of Proger Managers & Partners Srl with only a 22% default share arrangement ?
Control is about voting rights. PMP indirectly controls Proper Spa. Through voting rights.
Peer that doesnt answer the question tho does it. 22% of PMP is not control
There is no option to buy 22% of pmp. It lapsed. PMP need to pay back cad. Cad could settle the loan for taking a Bigger share of PMP. Interesting to see what happens.