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iaintgotaclu - feel free to paste away. The more we all learn the better
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Lmao....it was a cunning plan to boost the sale of man nappies and medical grade vodka....
LOL, I pretty insert "AIM" in sentences without thinking these days. Need to spend a little more time away from the mire methinks, LOL.
Firstly I'm in here not heavy just reviewing yesterday The 2.30pm RNS suspension was released by the FCA note temporary suspension at request of the company. The 2.36pm RNS was the company letting us know they had applied for temporary suspension pending announcement. So have we had an announcement yet? No and it's only temporary!
We here mate you've made your point many times over well done. It was a punt for all of us and we new the risks. If you could just take half a day off that would be greatly appreciated ;)
lol okenia was still stating it could be a 5 bagger even after the RNS yesterday
You conveniently forgot a word "unlikely" lol
Imho no one here over cooked them self we all knew the risk ,okenia is trying to unravel not give false hopes .
Except its over once the delist rns appears . thanks
you are just going to accept that it is over, that's what happens when you put money in a company that already said "there will be no shareholder value" they again yesterday reiterated THERE WILL BE NO SHAREHODER VALUE, stop fooling yourselves it is OVER. atb in your next get rich quick scheme.
Even better it is not an AIM listing it is a Main Market fledgling
brilliant detective work well done !! you make it look so easy i hope you dont mind i have copied and pasted your posts today over on the A DV FN
.........I will offer investors here, who have perhaps gone in heavier than they should have, is the fact that this companies AIM listing alone is worth pretty much what the SP stood at upon suspension I believe. So long as this company goes on as a shell and doesn't delist people wouldn't have lost much from the current levels as the assets were being priced as worthless by the market anyway. Obviously the companies assets can pretty much cover the debt, but with no value left for shareholders, but that doesn't mean the AIM listing isn't worth something, and if they can cover the best part of the debt, I can see no reason for the company to delist. I'm largely a pessimist, but I think there is still some hope for people here. G/L All.
Ie a negotiating tactic? By suspending and saying ords/prefs have no value, what they are in fact saying is that "BREDS, you do realise that you are now solely on the hook for any shortfalls?" IERE need the extension letters so they can try sorting something. So they are pushing back on BREDS and pointing out that if they force a rapid sale then BREDS will be the ones that are damaged. The suspension acts to reinforce that negotiating position.
Anyone believe that something positive will come of this??
At the moment (and after the sale of the recent German and Spanish properties) there is: €100m of senior debt to BAML €80m of mezzanine subordinated debt to BREDS The Step Down will be triggered once an additional ~ €47m has been re-paid to BREDS. But there is a key thing here - BAML get their €100m first. Thus, if there is any shortfall on the overall debt repayment BREDS take it all, on the chin. In the extreme examples, if there is a €80m shortfall BAML walk away fully-repaid and BREDS walk away with total wipeout. Hence why BREDS are possibly in a bit of a "febrile" state at the moment. Trouble is, if they force accelerated asset sales they'll take losses - and the losses are in effect 2x amplified for them. So it's really not in their interest to pull the plug on this because it is now their necks on the line.
I think there are 2 separate issues here. Firstly, the company has requested suspension of trading as they now believe they are insolvent under the balance sheet test. Secondly, and inspite of this, the mezzanine lender is still offering its support through extension of standstill, for the reasons okenia has pointed out.
If the current p/f valuation is so close to 100% LTV so an asset sale would basically just pay off the debt (which is what the Board are sort-of hinting at) then we have a rather interesting situation here. BREDS are a mezzanine lender and they are now on the hook for ALL of the shortfall until such time as they get zero repayment of the debt to them. Only then do senior lenders start to take a hit. Oops. Order of repayment of capital is: senior debt > mezzanine debt > preference shareholders > ordinary shares https://www.divestopedia.com/definition/785/mezzanine-debt "Divestopedia explains Mezzanine Debt Mezzanine debt is more expensive that senior debt, but less expensive than equity. The cost for this type of financing is in the range of 13% to 25%. Senior banks usually view mezzanine financing as equity for the purpose of calculating debt covenants. This is because the repayment of mezzanine debt is subordinated to the repayment of senior debt, but ranks above any repayments to equity holders. The preference of payment to debt holders is an important concept to understand. As a general rule, senior banks always get paid first, then mezzanine lenders, then preferred shareholders, and then common shareholders. Participants in MBO or LBO transactions need to understand their position in this repayment line-up. The risk of repayment increases as you move down the line, which is why mezzanine debt commands a higher interest rate for its holders."
I recall suspension ,then de list rns within the hour . I don't believe anyone here has put huge money in ,and everybody knew the risks . Is there a final twist .
I think they were looking at IERE and all the buying and had to step in Invista European Real Estate Trust's ordinary and preference shares have been suspended from trading, at the company's request. Earlier today the company announced that the standstill agreement in relation to certain ongoing events of default with regard to the mezzanine loan facility provided by Islay Investment Sàrl, an affiliate of Blackstone Real Estate Debt Strategies, had been extended for an additional period to today (11 September). The company says that notwithstanding the extension of the standstill agreement the board is now of the view that it is unlikely that there will be any value for distribution to holders of ordinary or preference shares. At 3:15pm: (LON:IERE) Invista European Real Estate Trust share price was +0.05p at 0.3p
And now my big question. WHO ARE THE PARTIES SITTING OPPOSITE BREDS IN THESE WEEKEND NEGOTIATIONS?? Ideas?
Now then, two questions. First, if the plan is to liquidate the entire o/f and repay the debt then why bother with the standstill letter? Option A to BREDS is to force an asset sale, so if that is going to take place anyway then why bother with the letter? That feels weird and wrong. Second, why not grant another 7 day letter? All the previous ones were for a full week. This time the first one was for a day (and interestingly, came later than usual and in fact there was a 1h12min period when the market believed one didn't existing during trading). And then it goes even weirder and we get one that is now just for the (non-working) weekend. Those three things have all the hallmarks of hard negotiations taking place and some hard-ball brinkmanship being played.
okenia i do feel there has been a bit of panic from both sides it was starnge that we had a temp suspension RNS and then 5 mins later the news of a suspension! why put out the first one ? yes the company are struggling with debt but a sale completing will help with mezzanine lender ( who seems to want to help) I do feel they was leaned on by the FCA to draw a line under it and made a bit of a hash of it?
And these are some of the solutions being investigated - which include both asset sales to de-gear and re-financing (and a blend of the two). Don't forget that a general rise in asset values in the sector will also help the key LTV figure if they can get a re-valuation that BREDS will agree to. -------- "As it was stated in the Annual Report and Accounts 2014, the risk of such a breach was known in advance, and was considered at the time to be mitigated by a combination of potential waiver or standstill agreements from the Mezzanine Lender and the ongoing efforts to secure a capital investment that will bring about the Step Down interest rate (for a description of the terms of the Step Down, please refer to the Investment Manager's Report of the Group's Annual Report and Accounts 2014). These mitigating factors are still in existence, since the Mezzanine Lender has provided the Group with a Standstill letter, while the Group continues to pursue a long term solution that will repay the Mezzanine debt to the level that will unlock the Step Down interest rate. Internos Global Investors Ltd ("the Manager") has been in discussions with several parties with regard to an injection of new capital, and in Q4 2014 the Board agreed to appoint a third party to conduct a strategic review to assess all options that remain open to the Group, including a sale of the core portfolio of assets. The adviser that was selected is Eastdil Secured, which already had experience of the portfolio, having successfully marketed the senior portion of the BREDS loan for syndication to BAML in the summer of 2014. In February 2015 Eastdil approached potential investors to seek indications of interest in a sale of the entire portfolio or some form of refinancing. Following initial due diligence, serious expressions of interest have been received; the proposals being considered vary in structure and include a refinancing of a portion of the Mezzanine Loan with a new mezzanine facility, as well as the potential sale of subsidiaries which own the Group's underlying real estate portfolio. The Board of Directors is at present considering these alternative scenarios, the details of which are still subject to negotiation. In line with previous expectations and as a result of recent asset sales the Group is now in Default in relation to its Projected Interest Cover and Projected Debt Yield Ratio covenants. Nevertheless, the existing Standstill that has been provided by the Mezzanine Lender demonstrates their support for the current strategy. However, if the Mezzanine Lender does not continue to support the Group, the existing event of Default could either lead to an acceleration of the Mezzanine Loan or the application of a Default Margin. It is considered that the optimal course for the Group is to seek the fastest and most secure route to reaching the Step Down Event, through continuing asset sales and pursuing the process with Eastdil.&quo