Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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According to Wazzan, one way to ensure NMC has a future is to create a brand “new company”.
This would be “with funding from potential investors who will acquire the goodwill and assets at arm’s length independent valuation and kickstart the business again with a clean sheet,” he said.
“The purchase consideration could be partly financed by rolling forward part of the existing debt to the new company. The purchase consideration together with the realization of the assets that have not been acquired (such as receivables) will be utilized by the [court-appointed] administrators to pay off creditors in accordance with the law.”
What about the existing shareholders?
They can think of doing so many options but none is thinking about shareholders- may be right issue?!
I think this is the best way for creditors to go, the business is worth far more as a going concern than the assets sold off under duress.
It probably won't help current shareholders much though, why would the banks want to give anything away. There may be a chance that there is a massive debt for equity swap where current shareholders get a few pence per share under the new arrangement as it may be less expensive to do this than start again with an entirely new entity. This happens on AIM far too often.
NMC is/was a disgrace. Even some AIM-listed companies operating under lax regulation would have more moral responsibility. Unfortunately, people who took fees (auditors, IB) go unscathed. Lessons learnt :
(1) Never invest in any Middle East-based company
(2) FTSE is a casino. No point in associating AIM and tarnishing it.
@skstock I 100% agree with you on both points. And with the suspended shares I did not even get a chance to take my money out.
Did anyone actually invest before the MW report? Or were you all mostly looking for a punt after the share price fall?
I had 3k in at £19. The 110k went in at 780..
adzy, FTSE100 is not my cup of tea, I like moderately high risk, so was in at about 7 quid, just CFD's for a bottom feed. I didn't think it was as bad as has been exposed however.
I feel for the investors who have lost serious cash, I have been there a few times. Unfortunately, it's part of investing.
Rastuss I agree. The administrators are tasked to recover the maximum amount of debt for the creditors, so in this case it is probably better to continue the business (politically and financially). You sack the old BoD get in the new (who bring cash), this will be to pay off some of the loans and they agree that a certain amount of debt will be taken on by the in effect new company and the rest written off. There still could be a bit left for current shareholders, but only if it's cheaper to do this. If not they may keep the business private or relist?
Fuq em all. Burn all the hospitals down. No 1 should get anything.
Just got the news re administration. Oh what a feckin surprise!! Lies, fraud, scum directors and a scam that was perhaps 45 years in the making!! An urgent international arrest warrant should be out for Shetty and his little fraudster cronies - wishful thinking!
The LSE/FCA, who have been as quiet as mice since they got involved should be ashamed. Absolutely zero UK regulation on foreign based FTSE companies. We need an explanation from them as to why they're wasting tax payers' money an investigation, all of which is going to tell us shareholders we were just unlucky to be holding them!
As for EY (who have also to no surprise made no comment in the last few months), they should justifiably get their *rses sued to the hilt for being asleep at the wheel on this if they can't explain. Total disgrace!
Al those 'former' advisors are probably all glad that Corona's going on and taken up 95% of world news!
I will not leave it here. If anyone is interested in taking this further get in touch. I am prepared to spend some serious money to take the Company to task. Those of you who have lost serious money here let me know if you're interested. This is simply unacceptable for a FTSE100 stock.
Goodluck dogger69. It really is unacceptable - would love to know what you have planned?
I have contacted several lawyers the past month. Of which 3 contacted me. Since I cannot join a USA class action from the UK I asked about group litigation in the UK. It’s probably a lost cause but worth a try. I’ll share the details of the 3 later once I get up.
Yes please do. Much appreciated. A no win no fee may be the way to go.
Good idea. Might be an idea to set up a social media page so everyone that’s affected can join?
Maybe try Haines & Associates? They are bringing the case against Yellow Pages.
https://www.cityam.com/?p=1233834
Dogger - I need to take this further this has taken away my life savings (£56,000) I couldn’t come too terms with that, what are the chances of recovering the money?
Guys, try Sean Upson @ Stewart’s law, he successfully led the Tesco claim.
https://www.stewartslaw.com/people/sean-upson/#head-nav
Read the cliffordchance report...
Group Litigation Orders: GLOs are a case management tool available in the English courts that provide a straight forward ‘opt-in’ procedure for claimants to join a class action. This is particularly effective for encouraging retail investors to join a claim. The RBS Rights Issue Litigation (where there were 9,000 claimants), and the Lloyds/HBOS case, are prime examples of the successful use of GLOs in shareholder disputes.
‘After the Event’ insurance: ATE insurance products cover
the claimant’s liability to pay the defendant’s costs if the claim is unsuccessful. This, together with third-party litigation funding, has reduced the notional downside of bringing high-value and complex shareholder claims as much (if not all) of the costs exposure associated with an unsuccessful claim has been shifted onto the funders and insurers
Specialist claimant law firms and claims managers: Claimant law firms have long been a feature in the US securities litigation market and are now driving many of the UK’s group actions. These firms can take the lead in co-ordinating claims, reaching out to prospective claimants, arranging the funding and insurance coverage, and then conducting the claim. Claimant firms can operate under conditional fee agreements, and so are incentivised to pursue claims to trial or settlement.
The 3 firms that replied to my enquiries are named below in order of engagement. 1 being multiple telephone calls and emails, 2 being 1 telephone call and emails, 3 being a couple of emails.
1. Slater & Gordon: karolina.kupczyk@slatergordon.co.uk
2. Charles Lyndon: Dorothea Antzoulatos dorothea@charleslyndon.com,
3. Edwin Coe: David.Greene@EdwinCoe.com, cc Jessica.Bourke@edwincoe.com
They all advised that they will research the company and situation. Group litigation requires many aggrieved shareholders to be viable so please reach out to these lawyers and let them know you would join an action. Obviously the situation is still unravelling itself and the expert consultants engaged by NMC are yet to release a report. So without all the facts a case will take time to build and will only be pursued by the lawyer if they think the probability of winning is high and there is money available to claim from NMC.
Karolina advised they two options may be available, group litigation which is no cost to the shareholder as it is externally funded, and going after directors which will cost and would be worth considering if they are high net worth.
David wrote I should refer you to my book but here’s a synopsis. You can claim in London for misinformation to the market causing stock drop. The claim is against the company and potentially directors under section 90A. You are thus rather dependent on their liquidity. There is not a claim against the auditors (which is different in the States) save possibly for prospectus claims under section 90. Investors buying in the London market have no claim in the States because of a decision of the US Supreme Court a few years ago called Morrison.
karolina.kupczyk @ slatergordon.co.uk