Member Info for adzy2k11

“I’m struggling to see how the current shareholders will be left with anything at all”

They won’t be!

I think that might end up being the official line, the CEO is an easy scapegoat. Shetty’s silence speaks volumes. If he was innocent he would have come out by now to deny the allegations.

Rastuss - their fees will take priority and I’m guessing they were smart enough to guarantee them before taking on the work.

Seems like he’s quiet busy these days... lol

https://www.instagram.com/p/B8tztUHpPCa/?igshid=1md4c05j3jo5t

And lastly, did they engage in fraudulent trading (we’ve been told yes, potentially)... all three of these scenarios would mean they are not covered by limited liability... to be honest whoever the creditors are deserve to have this debt be drawn down as NPLs given their own incompetence in lending to Shetty and co. Until we know the exact terms of the “facilities” in question we won’t know who is liable... for now I agree though that we should assume it is NMC’s debt, unless told otherwise... in the latter scenario you’re looking at debt-to-ebitda of 7x (if, big IF, the ebitda is real)

Rastuss - it really depends... did Shetty and co. provide personal guarantees against the loans? (Likely). Did they provide collateral again the loans (again, likely, $2.7bn unsecured is just unimaginable - probably their shares given nmc doesn’t have that much assets?)...

Yes, ofcourse, but my question is what the collateral would be for this loan? For mining companies they typically have large assets, but on nmc’s balance Sheet there’s nothing there?

My hunch is that it’s linked to Bank of Baroda and/or Yes Bank in India.

Deos - based on the timeline for other shares, I would guess 4Q 2020.

Rastuss - good point, but I’ve never heard of a company getting $2.7bn in loans? What could the collateral be? NMC didn’t even have that much in assets!

And ha, yes, wouldn’t be surprised if there are hidden bonds!

Rastuss - where did you read the $2.7bn debt is loans and not bonds? It’s just referred to as “facilities” in the RNS...

More likely is a debt to equity swap.
They don’t need zero debt if (Big IG) the business is sound... 2x ebitda is fine.

ADR was +179% after hours to $7.69... one things for sure is volume is becoming larger at 4-6x ADV.

Cheers. Yeah it’s all over the place. Best to watch the bond price as a better proxy. If that ever got back up to 70-80p then they’d be some hope.

How odd. Yeah let’s not read too much into it.

Where you getting live price?

Yeah, something is brewing.
Couple that with a weaker pound the £ value is even higher!

MW failures:
Noble group
American Tower
New Oriental Education
Anta Sports
Luckin Coffee

I’m sure there’s others, but ofcourse he’s been right many a time too.

It happens all the time... the Turk and Russians before TCG is the most recent...

Taverham - regarding ftse, depends on your time horizon, but I’m now 75% net long as I think the risk is heavily skewed to the upside, it might go down further but around about here I firmly believe and we are getting once in a decade buying opportunity. I prefer to play it through individual stocks mind.

Atleast we agree on one thing. Sorry to hear about your loss, nobody deserves to be defrauded. wishing you a better recovery elsewhere.

Where you @? Why so silent?
Want to finally come out from under your rock and admit you were wrong?
Don’t worry about an apology for the abuse you gave... I recall you saying to me "you clearly dont know much about fundamental analysis you shorting fear spreading halfwit little scum"...

Thanks Rastuss - but that’s fine, I think I get the gist of what it says and agreed easy to say in hindsight!