Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
So SONG has been a mistake. With no confidence in the management and who knows what further skeletons to appear and too many unknowns regarding the real value of the assets, I'll take my medicine and go elsewhere. I wonder if confidence in pseudo investment trusts will ever be repaired.
There is subtly in the wording. No-one was prepared to offer more than the existing offer.
Well if you want a little light shone on this debacle, sign the petition, every little helps pile on the pressure.
https://petition.parliament.uk/petitions/274851?fbclid=IwAR3HuTsDhiM4D5RcGcjwYCCts50GvvSReEKDlM0sjVSEwkYLOLZ5VfbaWVc
ft article today
"Thomas Cook’s management team is facing a new challenge in its battle to save the 178-year-old travel group: credit default swaps.
The UK-based tour operator agreed the main terms of a £900m rescue deal with its biggest shareholders and lenders last month, after failing to adjust to a big shift by customers from the high street to the internet. But now the company is looking to push back a crucial meeting with its bondholders, originally set for tomorrow, partly out of fear that a group of hedge funds will block the deal.
The hedge funds are not resisting because they think the rescue plan is a bad one. Nor do they think the restructuring is too favourable to shareholders, rather than creditors. It is because they are worried the scheme might not trigger payouts on CDS. These are derivatives that behave like insurance contracts, protecting holders against the risk that a company does not repay its debts. Yet while a life insurance contract is simple to settle — a person is either alive or dead — the shades of grey in the death of a company make CDS much more unpredictable.
Thomas Cook is trying to reorganise its debt in a way that will trigger losses for bondholders. This is exactly the scenario where CDS should pay out. But they may not due to “reasons of almost theological complexity”, in the words of one bondholder.
The analogy evokes the high priests of the CDS market: an industry panel of in-house lawyers known as the “determinations committee”, drawn from nine banks and five fund managers, who decide whether swap holders get their windfalls. This committee’s reliance on highly complex legal arguments has led to a run of bizarre outcomes. The DC, as the committee is known in the trade, is widely seen as technocratic at best, or conflicted at worst.
In the Thomas Cook case, some bondholders worry that even if the company files for protection from creditors in the US courts, it may still not trigger the swaps.
When Spain’s Abengoa filed for protection from its creditors four years ago, for example, it led to a surreal scenario where CDS written under one set of contracts were triggered, but those under a newer set did not. This was because of a one-word difference in a single clause.
Earlier this year, the DC disregarded a strict interpretation of English law and voted in favour of fixing a technical glitch in telecoms company VodafoneZiggo’s CDS. Cynics noted the banks, whose representatives hold most of the seats on the committee, stood to lose from the decision going the other way. Perverse outcomes in the CDS market often provoke amusement among observers, because the victims are typically highly paid traders.
The joke seems less funny when the consequences spill over into the real world and, as with Thomas Cook, hold hostage the rescue of a group with more than 20,000 employees."
Jeez, that's a scary article. Sounds more like post WW2 than 2019!
You might want to consider taking that Vimeo video down as it was an internal TCG publication to staff. Although there is nothing in it that isn't public knowledge by now, I suspect they won't be too chuffed about it being put in the public domain. Another of these was published very recently by another senior figure, which also had very little content of interest to peeps on this board.
....are not at all keen on tcg.
https://uk.finance.yahoo.com/news/why-think-thomas-cook-share-074525212.html
Apologies if this article has been posted before, but just reading it puts the situation into very simple terms, try to ignore the smug I told you so bits. If I had any remaining TCG shares that I could sell, Monday would be the last chance to offload.
https://www.fool.co.uk/investing/2019/07/12/the-thomas-cook-share-price-just-fell-40-dont-say-i-didnt-warn-you/
from reading the TCG statement post below, they couldn't find a buyer for the airlines at a decent price, so this was the only game in town.
They do have a fine line for gallows humour though!
"Existing shareholders will be significantly diluted as part of the recapitalisation. However, shareholders may be given the opportunity to participate in the recapitalisation by way of investment alongside Fosun and converting financial creditors on terms to be agreed."
as predicted. reporting on BBC R4
https://uk.finance.yahoo.com/news/thomas-cook-close-unveiling-rescue-234828478.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAAIqf6BJdLm9kXmBCBMHi48piEQmjFd22W4Qz6z-COOHIhDH3sJ6IAq5-DMrdfrOpD41fC_RXsHCLhiNEIVUQyYORALjtS2_X8LXtnG1knV4-nYNphOTd0HlBuAp54TDrwY_tdjbgt5If8iOBa333OTpTLzqjOb8j9h4d5cn6dVSt
https://uk.finance.yahoo.com/news/thomas-cook-close-unveiling-rescue-234828478.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAAIqf6BJdLm9kXmBCBMHi48piEQmjFd22W4Qz6z-COOHIhDH3sJ6IAq5-DMrdfrOpD41fC_RXsHCLhiNEIVUQyYORALjtS2_X8LXtnG1knV4-nYNphOTd0HlBuAp54TDrwY_tdjbgt5If8iOBa333OTpTLzqjOb8j9h4d5cn6dVSt
Why do you draw the conclusion that positive results from a low cost airline means that the results from an Inclusive Tour Operator will be good too?
It's like comparing Ford to Transport for London.
Blimey, 9 posts in a row which are sane! There is hope after all. I think there are some parallels with ILG in a broad sense. From inside the industry TC looks like it has lost the knack of making a profit from selling a holiday, much the same as the MyTravel group did before it. There really are some rank amateurs in high positions in the travel trade. It all looks a bit unwieldy and tottering along until something breaks the donkeys back. Anyway, IMHO, the sale of the airlines, though desirable and necessary, is doubtful simply because the offers will be too low to relieve enough of the debt. Always the debt is hanging around in the background like the grim reaper.
Would suggest some on the board read the Wiki on Air Europe (ILG) which was around til the early 90's. Refer to the sections starting 1.10 1.11 1.12 and see if you can see any parallels with today.
I imagine the 22000 peeps who rely on TCG to pay the bills care quite a lot. But, of course, it is fair to say that hey will probably not care too much if you lose your shirt on TC shares.
correct
Lets put its this way. HiFly is to quality airlines as Ratners is to quality jewelry!
IAG and Ryanair have publicly said they are not interested.
EasyJet, I'm told, are lukewarm.
Virgin only want UK Long Haul
Lufty only want Condor, even though they have said they Might be interested in the rest.
No-one has expressed an interest in the Scandi or Balearics bits.
Indigo, who the hell really knows.
It will be sometime yet before the truth comes out.
Suggest you read page 5 of the Q2 Results document under the heading of Financing Progress.