The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
https://www.dundaslife.com/blog/what-is-ccaa
The CCAA does not cover the following:
companies that have already been declared bankrupt or insolvent
companies that have been adjudged insolvent under the Winding-up and Restructuring Act or that have already started the bankruptcy process.
And it can be extended a number of times if the company demonstrates a credible plan to pay back the creditors.
Yes Fuku.
Agree it's looking dire now. I did read an interesting view elsewhere.
Basically the idea that NGen were a stalking horse, for unnamed loaners. That were basically looking to acquire the resource from some time back.
If the 5 Mill is more, but in from the same to secure... So from those still " interested" parties. That would make sense.
The resourse, at up to 2% Cu in a few years time. Will be a more than tidy sum, we all appreciate.
But likely now, for whomever requires/relaunches the company (Brad maybe, or AN Other?).
If they can take the mining advances, inject the capital, and run it professionally..... It will bring to a great earner IMO, and not just mine....
But existing holders look like toast sadly.
Big F*cks Small it seems?
What a shambles.
The examples I have earlier should help you look into real life examples.
As I said earlier my personal expectation is you're likely to see the approval fairly quickly....this week IMO tomorrow m maybe next day.
Doesn't seem unusual for a loan at point of CCAA.
I then expect them to initiate an SISP.
SISP is a sale and investment solicitation process in an insolvency proceeding under the Companies' Creditors Arrangement Act (Canada).
Then delist. That's just my view.
Regarding the CEO getting an unfair wrap. I agree he has technically improved operations but he hasn't IMO been across the broader business and under his stewardship he hasn't had a handle on the finances enough. While other people are responsible for the financials in the company, the CEO is accountable.
Anyway it's a mute debate now.
Atb
Bradmill played everyone. The insider in newgen
Letters p and t are quite close in the alphabet, yet there is quite the difference between leadership and that other word.
>He was ramping this like mad over the summer and then released THAT RNS in early September instead of doing a 20p placing to generate cash. That's before you even get into what has happened since then.
Not to mention not a single time showing his face through this whole ordeal, either through informal virtual Q&As, or even just video interviews with some platforms. No explanation given to supplement the often curt and confusing RNSs since summer at what have clearly been very turbulent times for the mine.
The CEO has been treated fairly. He was ramping this like mad over the summer and then released THAT RNS in early September instead of doing a 20p placing to generate cash. That's before you even get into what has happened since then.
I agree that it looks like there are some positives to take from today's news and I hope those locked in manage to get their money back but there are questions to be asked of TB regardless of the outcome.
we are in admin next peace is brad mill take away mine.
And more......Our CEO is treated very unfairly on this board...
It was he who brought this mine back to life and gave it a chance....before him there was no chance...
He has ,in my view reported on events when it was appropriate under PLC rules..
For example he couldn't tell us that there had been a default,until one had actually occurred...etc etc
Thank you for your insight. You know a lot more than me and I always value your posts more than most
And......I do see the fact that the maintenance was brought forward as very positive...... it's saying to me that we've cleared the decks to have a really good run at maximising revenue/cash during the CCAA period..
Perhaps that is the message the board wants us to hear...
Hi R2-D2.....I think we're on knife edge now.
We have a 13 week cash flow monitoring to complete with the LIT observing.
I guess that that will show if we are viable......however ,I don't know what the criteria is.
I don't think it's all over and we could come back.....but we might not
I'm not sure what will now happen at the end of our six month suspension...
Who has lent us the 5m....probably the current creditors which may be part of the ....we're talkin to them but can't guarantee the outcome, under a different narrative...
Strangely I feel that today was more positive than negative..
How do you see this going LL2, is there any way back from here?
The CCAA is a Federal Act that allows financially troubled corporations the opportunity to restructure their affairs.
But does 'certain senior secured lenders' mean all such lenders? or only some of them? i.e. is this NewGen making sure it's at the head of the queue? It's all very strange.
"RMMCL has entered into a conditional DIP agreement for a loan of US$5.0 million with RMM Debt Limited Partnership by its General Partner RMM General Partner Inc., representing certain senior secured lenders to RMMCL."
It looks like the lenders of the keep the lights on USD5.0m are the existing senior secured lenders.
By 'we' I mean RMM. Currently I'm still a shareholder but who knows in the future!
From Newgen perspective it could be good if one of the gold royalty firms were looking to put the company into administration to recover debt or it may run against their wishes. We just don't know.
Once mine is running again at least there will be revenue unlike last week where mining was halted.
Once again nail biting times.
'we are still hopefully mining again full steam tomorrow' - maybe, but who is 'we' in this context? Not the shareholders, who as you say are likely to end up with nothing, or next to.
Seen from NewGen's perspective, this has to be seen as a hostile act. One must therefore presume they were not going to cooperate with a restructuring, in spite of the emphatic views of some posters here.
DIP financing lenders are given first priority on assets in case of the company's Liquidation. This loan repayment will take precedence over Newgen Loan. Fairly safe investment in view of RMM assets. Most likely end result is takeover of Rambler for peanuts leaving shareholders with nothing. Even so a lot of work has been undertaken to get the mine up and running again so there's hope. It could have been curtains today but we are still hopefully mining again full steam tomorrow
I think the point is, someone had to put up cash to keep the pumps running, or else the mine is dead. Whoever did so, wanted to be sure the major creditor could not just grab it. It's a sad story.
Other*
Not what I was saying! They already have £30 millionish secured against assets (Who will be first in line) - So the company is willing to give them an ADDITIONAL £5 Million knowing that they already have over loans secured against assets - Meaning they KNOW this mine is valued at considerably more than 35 Million!
have no insider knowledge
So, it’s adios to Rambler in its current guise, then?
>They must also believe there is still value on the assets as this has been secured against the assets!
What else would they secure it against? Bradbury's pinky promise?