The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Pilot: 'Alfresco. That is incorrect. The agreement was until the end of January. And COPL were supposed to be funded through Q1.'
6th October RNA
'COPL's Senior Credit Facility Lender has agreed to accumulate all interest arising between October 2023 and 31 January 2024 on a PIK basis. In addition, they agreed to waive the quarterly covenant tests as at September 30, 2023 and to reduce the minimum liquidity covenant from $2.5 million to $1.5 million from October to December 2023.'
So I am right, ends end of December.
Unnd, I agree totally. The notice the SL has served on COPL is routine, it had to be done as the current agreeent ends at the end of this month. It is up to COPL to negotiate an extension or an increase, they alone have all the required information and hopefully it is all good enough to get us past this issue. As I said before, the notice served by the SL is not related to the termination of the JV discussions, it was always going to happen. I guess COPL hoped to have secured a large JV payment, but now they have to look at alternatives. Who knows, maybe they had another large oil company waiting for this moment!
'god knows why are all the people surrounding this company seem so inept, seems only anavio has learned how to make money out of copl and yet even they (or the collective) are in the hole still for over $20 million.'
Which is why a solution will be found, Anavio are unsecured and it is investors' money. Better to put some more in to make sure they get it all back.
'COPL's Senior Credit Facility Lender has agreed to accumulate all interest arising between October 2023 and 31 January 2024 on a PIK basis. In addition, they agreed to waive the quarterly covenant tests as at September 30, 2023 and to reduce the minimum liquidity covenant from $2.5 million to $1.5 million from October to December 2023.'
So we are in breach of this, I think, not related to the JV termination. Jan 1st we need to have 2.5m in the bank. We are probably not short by much, I am sure they will find a solution. The buyers must think that too, and I am not selling, this looks as if it is going to come good within the next few days.
You only lose if you sell or if the company folds. I have 2.7 million at 4.89p average, I have lost nothing, but my investment is now worth very little. However, I still believe that something will come of this. We have been in the same position with the lender before, and recovered. I bought a few more at 0.30p yesterday, maybe crazy but we will see!
'Then looking at the other RNS, unless they are totally inept, what in earth were Atlas doing buying 50m shares when they must have known the JV had stalled '
And their buys were completed by Thursday, before the Friday drop.