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Which date is 250 million due on pfc?
PFC are trading in the UK not the United States,.....
Bankruptcy
When a business has failed, formal insolvency procedures may be the only option for recovery. The key difference between the US and the UK is control. Chapter 11 (administration, in the UK) leaves the directors in control of the business, and Chapter 7 (liquidation, in the UK) is also a light touch.
In the US, bankruptcy is regarded as a ‘relief’, and the main petitioner is usually the company or the individual itself. For individuals applying Chapter 7, not only can the bankrupt retain his residential property (in most cases), tools of trade, and a monthly income of up to $10,000 a month, they also wash off most of their creditors (excluding certain taxes) and can be out of bankruptcy within 3 months. That said, under US law, an individual can be refused bankruptcy relief if they took credit within 90 days of applying for bankruptcy, or if they have sufficient means to pay their creditors.
In the UK, bankruptcy lasts for 12 months, assuming that the individual cooperates fully with their trustee. During this time, the individual cannot be a director or involved in the formation or management of a company. The individual’s assets are thoroughly investigated and any realisable assets (including residential property) are sold for the benefit of the creditors. There is also a significant stigma attached to bankruptcy. It will remain on the individual’s credit file for 6 years, making it difficult to get credit in that period. Entering bankruptcy in the UK is very quick. If a statutory demand remains unpaid for 21 days, and the creditor is owed more than £750 (to be raised to £5,000 in October 2015), the creditor can petition for an individual’s bankruptcy
This is more likely......
I’m really hope the same thing that’s happened to the hedge funds that have short positions against DARK, also happen to PFC short positions
Mary a helpful link. Thank you. I had not understood clearly before the reverse situation of equity/ debt swop.
Good luck all whatever scenario you are hoping for. As always will be winners and losers
Thanks for that Mary. I note the last rns states that a range of options are on the table. This being one of them. Not long to wait now. Still think it’s better to hold. Still some very large buys at this level. Some people still v happy to accumulate…
Of course that is a possibility.
@confluence - it is possible that the reults will be written/contain enough to keep the banks/lenders/creditors on board and not provide any resolution to the ongoing saga.
They may only provide further vague commentary similar in nature to the most recent RNS.
On the other hand, any comment or remarks made by the auditors would warrant close scrutiny.
@Petrosaga, we’ll soon find out - 🤞 you are right.
Apothecary,
What part of the joined-up writing do you not understand?
Confluence
While I kind of agree, surely it had to be written as would otherwise its meaningless to say a debt for equity swap may or might reduce debt, d4e would remove a chunck of debt. At the end of the paragraph the final sentence of "All options remain under consideration" indicates that no decision on d4e, possible further investments, asset sales or a combination of them has been decided, which also makes it all the more confusing, intentionally? All from an RNS, which feels reactionary and quickly put together after the sharp rise to 32p.
It’s a roll of the dice at this stage, lots of hope that’s died off over the last week. I dumped 100% my holdings to salvage what was left (too risky for further loses). Like others I’m watching IF there is a re-entry point to make up some loss (not holding my breath).
Seen this debt scenario with ongoing orders a few times,
AA – Sold to private equity cheap,
Carillion – Bust
Thomas Cook - Bust
Tullow Oil – Share price from 250p-ish to 20-30p range.
Etc.
Not sure how accurate simply wall street but they have debt at $514m and a Fair Share price of 7p, so PC with 4p isn’t too far off others opinion.
https://simplywall.st/stocks/gb/energy/lse-pfc/petrofac-shares
But if so bad, why was there a rally a few weeks ago that took this to 33p? such confusing signals.
Good luck to all LTH and people needs to recoup losses.
@Apo, love your confidence and you never know but the words are
“ to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business.”
“Would” not “may” or “might,” but would ( aka as will) - the killer is on that one single word.
D for E is only an option amongst a range of other options they have to address liquidity - IF it happens at all - who knows. There could be an investor willing to invest or take over on the cheap (less £1). Huge risk for those that have sold with big losses imho. Its pfc expect the unexpected
Most don’t know 💩…. Including shorters. Am happy to hold and have been buying at these levels. Don’t know what the whole fuss is about. D4E priced in - if it’s bad news it’ll maybe drop a bit but there is gonna be some hell of a sqweeeze for the shorters to buy back - bring it on 🧨
Apothecary
Are you actually being serious?
Kicking ourselves for not holding when the SP hits 10p on Tuesday?
If you’re happy to loose over 50% then so be it, I’m not!
Knowbody knows for sure but a lot know what’s most likely hence 10% shorts and the SP in the toilet. If news is good the SP will fly but it’s one hell of a gamble from here and I’m not prepared to take that chance.
Thomas
Administration Is the one possibility that hasn’t really been considered yet as whilst the debt requires urgent attention and the loss making contracts need finishing, if they can manage to control the debt and make a profit from the contracts awarded in the last 18months or so then the business has a future. Although administration would create an easy way out of debt and allow someone to pick off the valuable parts of the business on the cheap and continue with the business under a different guise. It’s all to common recently. ESKEN and SDRY spring to mind. I really hope the update is satisfactory and shows a clear recovery path without destroying shareholders but am expecting the worst.
Sm66,
The stock overhang after the D4E will be enormous, enabling short positions to close at will. There is the possibility the PFC goes into administration.
What’s wrong with holding and tripling up if we get 10p on Tuesday morning. Ul all be kicking ur selves u can’t buy back in when this rns gets out- it’s pfc ffs so anything is possible!!
I think today this board has generally been as honest as we are going to get on good reasoned opinion. To all that have contributed I am sure those of us that have been watching on the sidelines will have found your views helpful. Thanks.
One comment though. Is Tuesday's announcement definitely the final 2023 results PLUS the balance sheet strengthening and way forward? Perhaps someone can clarify. If not I hate to think the mkt reaction.
I agree it can be exasperating being accused of being a ramper or de-ramper on these chat boards.
The trouble with non face to face communication is the ease in which misunderstandings can sometimes arise.
Especially when emotions are running high and a lot of money is on the line, or has been lost.
Hopefully a positive outcome can be achieved for shareholders.
If there is a take out at a premium to the price right now, or a premium raise, or a D4E around this price, then I will be happy for holders (and will at least try not to be sad for myself!) - but I will not retrospectively deem it a strategically poor original decision, based on the formal information that we have to go on at the time of print.
Before this time next week, all will become clear. GLA.
Sorry !!! Wrong board. Apologies
What debt exactly??
LWHL
Fair enough but I think anyone who claims I’m a shorter is ranting. My posting history, here and on ADVFN proves otherwise.
The share price is being propped up by shorter closing because the borrowing costs have shot up.
I’ve said before that the risk reward absolutely screams sell and wait for the restructuring RNS. A D4E is odds on and there will then be a massive stock overhang which will kill any/significant upside even if a decent swap price
But the downside if a low D4E price is potentially horrific. Why take the risk?
I agree SM66..! I sold up last week at 20p and 12k loss! I was overly optimistic for far to long whilst watching the SP get eroded week on week! I naively thought the new contract awards and extensions would pave the way to a brighter future but you can’t ignore the overwhelming debt which has been dragging this company down. I like you will wait until that debt has been addressed and the BOD can demonstrate a clear path forward. Only then will I well jump back in and try and recoup some of my losses. Let’s see what happens next week. GLA