Member Info for BillTucker89

Meta- the vote and deal is mentioned by City AM. The refinancing needs to be done by March, so I’m guessing the votes for the deal will take place before the AGM unless they get a further deferral.

Tartan- BoD decide which option which will be put forward to the vote. It may contain an alternative but it that might be worser than what they are proposing, won’t necessarily be a better deal.

Tartan- on the 26th the shareholders will either vote for or again the deal. If the former then the lenders will own 95% of the company, new shares will be issued to them and the sp will adjust accordingly. If the deal is declined then the company goes into administration and the lenders take it private.

Feilb-plan will be announced tommorow with the meeting taking place on the 26th.

This is sneaky of IRV?? They have postponed the EGM requested by Coltrane until 26th March. So it seems this will happen at the same time or after the vote (if it takes place mid March) on refinancing, so give Coltrane no leverage to out the board.

Surely this should have taken place on 6th March the latest?

Tartan- the refinancing arrangements

Pearls- I wouldn’t say this is a win win just yet (though looking better),still a huge amount of risk here if no deal can be agreed between lenders and Coltrane. Even though we have a deal on the table if enough shareholders reject it, then this will go down the admin route if Coltranes plan is not accepted.

https://www.google.co.uk/amp/s/www.consultancy.uk/news/amp/20475/ey-reportedly-in-line-to-administrate-ailing-interserve

Hopefully they have some common sense. As they will now be equity holders as opposed to debt holders, fluctuation is part of the package just like what’s happened to us. Just because they will want the value of their stake to equal exactly the amonut of debt they will reduce now, this does mean the sp will not go below this price. It will just take one bad trading update.

So they would still be loosing 1p a share after the rights issue. Also how are you getting a d4e value If 578m?

I did initially consider they would take part in the rights issue, but that would still leave them with an average @39.8p.

Based on the their holdings they would be entitled to to purchase 243750000 share @20p which gives a total of £48.75m. Add this to the original 436m gives you a total 484.7m which is more or less the original figure in the proposed d4e swap. However the lenders now own 81.3% of IRV for their £480m as opposed to the proposed 97.5, but they still are in control of the company as the hold the majority of shares.

Personally I think this is a sensible outcome for everyone involved including the lenders, but just depends if they are willing to give an extra 14% of the company away, as well as take the a “hit” on the share price. I don’t think it’s worth a pre pack deal for the sake of 14%, since they will have to pay administrators cost, possible risks of JVs being bought out at a silly value as well as having to pay clients.

Do we have a workable deal here?

Coltrane are proposals means there will be 1.5bn shares in circulation of which 65% will be owned by the lenders to wiped out 436m debt. This suggests 975m shares will be issued at 45p a share to the lenders.

However they then propose a rights isssue that will issue 375m shares at 20p raising 75m for the coffers. Now I’m guessed by the banks will object to this, since they will argue shareholders are getting a better deal the lenders ironically. They will also be making a paper loss of 90m since the share price will be around 34p post d4E.

Now are the savings facts:
.the banks “write off” 44m less than they would have under their plan.
.they will not have to provide the additional 75m liquidity required
.everyone wants a conseual deal

Although the banks have theartened administration, there seems to be relunctancy to do this for the following reason:

. Joint partners in the Middle East may about JVs at a discount
. Reputations damage to the company
. Some of Interserve’s contracts holding bonding agreements that stipulate IRVs insurers will payout the client a significant sum should the company go into administration. The insurance policies that will need to pay out under these conditions are the same insurance arms of a number of the lending banks, so I can see some of the lenders pressuring other lenders to avoid administration at all costs as they will actually paying and loosing even more money.

Meta- maybe they were holding the shares for Coltrane anyway? It’s always reported Coltrane had 27% of the voting rights, but only held 17% directly.

Also done some digging around on the Rbs and the split is 50/50 between iis and PIs. Main holders are Coltrane, Farringdon, SLA, UBS and switch’s bsnk

Feilb that will certainly not happen. If Coltrane and Farringdon get a good deal, then there will be no resistance. Look at the RNS on 2nd January where they are issuing around 15m shares to the lenders as way of warrants. I see these will make it into the market before the 2 votes. As the lenders already have around around 4.5 (well what’s in the public domain) this gives them a total voting right of around 13%.

Add to that the 10% you mentioned below and they are almost catching up Coltrane and Farringdon, so they have some strong support.

A deal like this would make logical sense but as you say people with high average like myself still loose out but I get half my money back. I could also average down to around £1 when the company is more secure and get all the money back in theory.

However the deal can go like this

6bn shares at 8p
Coltrane and Farringdon here’s 750m (12%) shares for you both for voting the deal through
Shares rise to 16p
Both sell raising 120m between them
Result= both walk away with their investment plus profit, normal share holders still been screwed with no chance of getting anything back

Feilb-thanks as I said before they don’t need to reduce debt so drastically. At the moment 240m will be more than enough to give the company some breathing space as well as preserve some value for shareholders. I totally agree about the leaks, this was a setup from day one. Like you say they could easily done a d4e at £1, 80p of even 50p which would have been way less painful, but they waited until the 11th hour and deliberately sucked the life of the share price.

Kenj- a RI is out of question here, my post was regarding D4E. Sorry to hear what happened with you in Mouchel btw, I’ve had similar happen to me.

http://www.cityam.com/273551/interserves-rebelling-lead-shareholder-tightens-grip-firm

Feilb- any idea what a 75/25 or 80/20 would look like. For example It’s obviously 450m (making 600m in total) new shares for a 75/25 but this would need the new shares to be issued at £1.06 (to cancel the full 480m debt) which I don’t see happening as that’s 10x the current price. However the share price d4e would sit around £0.85 and can hit.
£2.

How would you calculate a 75/25?

Feilb thanks I was just thinking along the lines of the worst would happen. I know you’ve stated that Coltrane can block the deal by removing the board, so it’s unlikely but it’s a possibility that the delevearaging goes ahead before the EGM.

Maybe they will come back with 75/25 deal or Coltrane and Farringdin are given 15% between them? I’m sure we will know what’s on the table next week the latest.