Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The earlier RNS did say to expect a “de-leveraging transaction with very significant dilution” . The company itself has told you all what to expect.
If she was wrong she and her newspaper will be sued big time. You might be rights but I imagine they would have been very careful before the tweet was released to ensure it was accurate.
Cripes. Down 40 per cent and still sliding
Get out quick
It is from a reputable journalist. I think it must be true. Price is collapsing it seems.
What did it say?
Time for those who bought at 2p to sell?
Has the filing happened? Something seems to be going on for such a sharp slide.
This just means they are also the most sold shares. Someone sells and someone buys. It is not positive for the SP.
I stopped taking the chats on this site seriously when I realised from earlier posts that a high percentage of “investors” here, who were trying to give others advice about RR, did not even realise that the RR holdings entity that’s makes aero engines etc is nothing to do with the company that makes Rolls Royce cars. I kId you not. It’s just a bunch of small time gamblers, many sitting in their mum’s basements spending their birthday money.
I know this because I read and understand the RNS.
What is your problem with someone whose view is that shareholder will likely get wiped out? That is not guaranteed to be the outcome but it is what many think is most likely. So you filter that view is it?
They have sold their shareholding in full. They have then made a loan to a third party who has bought shares amounting to 3.6 % and issued security over those shares to GS, so that GS have the voting rights (but do not own the shares).
The cinemas and the industry will be fine. It is just the existing shareholders who get wiped out. The business will continue, possibly absent any limited loss making sites. So many on this board don’t seem to understand bankruptcy processes.
The point you are totally missing is that Chapter 11, whilst it may allow the business to survive, nearly always completely wipes out shareholders. Even the company has said this.
You can have different amounts of buy and sell orders.
Secured creditors (usually banks) get paid back first, followed by unsecured creditors such as bondholders. If a company has preferred stockholders, they are next in the priority line after bondholders. Stockholders are the last in line, and generally only get anything if the rest of the creditors are repaid in full. And since the reason most companies use Chapter 11 protection in the first place is an inability to pay their debts, you can probably imagine that this doesn't happen too often.
What happens to the stock?
The short answer is that most of the time, the stock of a company in Chapter 11 becomes worthless and shareholders get completely wiped out. Purchasing stock of a bankrupt company for pennies per share and hoping to make a quick buck when the company restructures almost always turns out to be a bad idea.
The company may issue new shares upon emerging from bankruptcy, at which point the old shares are cancelled and become worthless. The new shares are often issued to its creditors in exchange for a reduction or forgiveness of the outstanding debt.
The point you are missing is that equity is nearly always wiped out in Chapter 11. The company may survive and even go on to prosper but not the existing shareholders.
Indeed, the problem for the company is not even really cash flow from sales or costs excluding interest. It is the debt level and some continent liabilities.. If the debt is 100 and the assets are worth 50, there is nothing left for equity. It’s simple as that.
I don’t understand why anyone would hold. The company itself has already told you in effect you are going to be wiped out completely. When the assets available are less than the debt, that is the way it works in any insolvency or bankruptcy process.