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But what I'm saying is objectively true and evidenced by facts and data. My negativity is based upon the reality of the situation rather than the wishful thinking of the optimists.
And it's all too easy to blame COVID-19. The pandemic didn't create PMO's mess. It was always there and debt wasn't cut fast enough. The insatiable appetite to acquire was also daft.
Happy if you're that averse to PMO why don't you do us all a favour and stop sprouting bulls**t on this forum - you clearly don't have any shares and have no interest in them so get lost and stop bothering us. Some of us want to make money and it's covid that is stopping us doing that - take a look around you - everybody is in the same boat....
As soon as Premier confirm details, which should be very soon, and the uncertainty is gone with the comfort of 4 + years to benefit from a stronger oil price this share will start moving up very quickly. I will certainly be over subscribing and depending on that purchasing more.
keep taking the tablets Rookie1 it'll get better.
Yeah I might well be insane and sad but you have to be to invest in casino oil companies such as this. An investing life wasted "investing" in c*ap like this - sadly. I confess. Albeit glad I sold my PMO in tranches between 60p and 70p at a substantial loss.
I think you peeps are the mad ones because you don't see that you're mad. You are in a perpetual cycle of denial. Some you actually believe PMO will make you rich - ha, ha, ha!
We shall see. And, yes, I will be the voice that says, "I told you so".
Your cracks **** pal
Oops.. TRIED
Very sad ... have you tied therapy....
I want to add a load at these prices but can’t bring myself to do it.
Not sure why creditors would want to take over a company especially an oil company. Lenders lend for a return on their investment. Pretty sure banks do not want to get into the home ownership business, they foreclose if the debt is not getting repaid or will get defaulted on through loss of job or income. TRUE PMO have not been able to meet the time line expected, this is due to world events. The business model remains sound. Terms have to have been renegotiated due to the 2nd PoO drop. The creditors still realise a return on their investments. They foreclose if they do not belive PoO will ever recover, but then its a fire sale on assets in a market where there are not many (if any) buyers. ARCMs actions have resulted in TD getting a better price ( due to the same world events) on the BP assets.
PoO remains the win or fail on any oil company.
The same problem that has hit all that invested in shale, all though in that example it has proven the figures can be manipulated ( productivity / life of field) so the investment returns are not being realised at all.
At last count all creditirs supported the BP purchase at the original price ARCM were the only ones that did not...I feel it is because they a have a different "lending" model to what is the norm. Am I correct in saying that they purchased their position from others. What I do not know and ask is what was their original buyin position, were they part of the original investment round and by how much did they increase it and how quickley. Their speciality seems to be very Gordon Geko.
Rgds Sft
Happy change ur nick to UnhappyInvestor100. Happy is misleading.
They already agreed to the BP deal, hence the issue of shares to close their short? How can they now turn around and say the don’t like the assets?
Why on earth would creditors agree to write off any amount of debt whilst there is still equity in the company?
Also, peeps are asking why creditors would press to own the company. That's easy. Because they don't think PMO buying BP'S cr*p offers them a realistic chance of getting their money back. Some of Premier's assets might realise more value in slower time e.g. Zama, tax losses etc. Without the debt burden, PMO would look more attractive and creditors turned shareholders could negotiate from position of strength.
Best
Happy
Devon is only just looking at one side of the coin that is on creditors side. But he doesn't want to think that what is other possibility which LTI, Kenni and others are saying. Why a deal was made to write off $205M if PMO is able to raise $325M via equity? If creditors want their money back then why write off $205M. Not a small amount considering a consortium of 40 lenders? We also have news that PMO has received support for in excess of targeted $325M. Full 75% agreement not reached still could be related to ARCM.
PMO would have gone bankrupt in June convenant test if creditors wanted but they extended it. Worst case it will get extended again to wait and see the oil outlook next year or a deal will be reached but no bankruptcy. IMO.
Does anyone know how much debt is already due and/or due in June 2021?
I'm assuming 300 odd million?
"Devon, you are missing one point."
I'm not missing any point as far as I'm concerend, are you sure you aren't?
No they don''t live in a bubble, and just for the record the debt markey is a much bigger market then the capital equity market, but they do consider capital return as the most significant stance, debt is tradeable, and so you can make monet trading, but it doesn't benfit directly in equity return, so return of capital is a crucial element of it.
Devon, you are missing one point.
Creditors do not live in the bubble (well... ARCM) ,they know there is a crisis and I think they understand killing the company would be not good for anyone... They can get more $$ if PMO continue to pump out the oil. And that is the bottom line.
"So why 30 September?"
because that's the date they have put off testing the covenants until, after that date they test the convenents and if they fail the company could be in breach of them and the runs the potential of the investors voting to call in the debt.
"You are a smart cookie for sure,"
Thank you, more compliments!
Something more positive and constructive, like considering all the options before commiting, or recommiting my capital?
"demanding payments now"
they aren't demanding payment now, if you read the RNS, the company basically says it's in breach of the June covenents test so it's been extended to the 31st of September after that point creditors can vote to request return of their capital and they may be defaul of the 21 maturities. So, it's not quite a binary outcome, but it's significant as the price of oil in my opinion. They haven't vote on the deal yes, so as it says "with a subset of creditors"
And From RNS:
'the refinancing is anticipated to take place during Q4 2020'
So why 30 September?
Replace 'all' with 45 per cent
So what are the other outcomes Devon? What is a more positive outcome? Look what we have just been through, look how we have been in courts about the deal, do you think they want to apply to the courts again to try and take the company?
You are a smart cookie for sure, you know your stuff, you should put your talents to something more positive and constructive.
LTT
devon... if they would demanding payments now, why would they all agreed Refinancing ?!
https://www.lse.co.uk/rns/PMO/refinancing-heads-of-terms-agreed-zym6otyytazlt8p.html
With over 100kbpd they can earn on this debt with 8,4% and get the debt back in 5years (65$)
Do debtors have a business which can generate hundreds of mln cash every year?
Debtors like Schroders manage hundred of billions every year and 0.3bln here does not make them any poorer. In contrary. The can afford to wait for 8.4% payments and make millions out of it.
"something like 40 creditors"
True, but it only requires a small number of them to form a syndicate. For the rest, life just carries on as usual if they are lucky.