Member Info for BillTucker89

What’s everyone’s view on the viability of the prepack deal? Where does this leave liabilities such as FCA investigation as well as EFW liabilities as IRV will be no more. So who will the FCA fine if there is evidence of any wrong doing? Who will compensate shareholders like we saw in the Tesco disco?who will pay Virdior the £60m they owe? Who will warranty the EFW plants? This is looking messy.

Feilb- indeed this was once a thriving and well respected business, and look at the slow painful demise of it today. All caused by one man being sleep at the wheel who no doubt will profi heavily from any favourable deal to the lenders. As you’ve previously stated shareholders have been written off prematurely, which is a sad state of affairs.

Meta-you say employees will loose out due to shareholders greed, but I think the BOD has already done that by making the share save schemes worthless all for their own personal gain.

Meta,

How will the lenders not get nothing if this goes to prepack??? Lenders will get something either way.

It’s shareholders that need to be on the edge here.

Feilb,

With the most recent findings on the loan conditions, I don’t think the lenders have left much for Coltrane to play hard ball with. From the blocking of any restructuring deal, to the removal of key players of the board in the rescue deal, it seems they have all basis covered.

The only hopeful I can see here is Coltrane pushing through a better deal for all shareholders, or the BOD renogiating the deal by recognising their mistake. However if it’s anything like Mouchel, we know what their preference would be.

There is too much negativity on IRV at the moment so would be wise for them to do the right thing here.

Feilb- the issue I see with holding these shares at the moment is the fact that if the BOD decide to go down the prepack route. We won’t even get a penny a share then, compared to the 10p a share they’re currently worth.

Also if the refinancing is blocked £66m becomes due which triggers a default and makes the prepack deal even easier. Not sure where this £66m can come from straight away, unless Coltrane and Farringdon offer a short term loan.

Pretty sure UBS also have 3% holding here.

Also have noticed there has been at least one large trade out of hours the last week so, where someone is buying 300-400k shares at a time. Is it someone on behalf of the lenders I wonder?

Another possibility maybe 2bn shares are set aside for Farringdon and Coltrane to purchase at 8p a Share? This way they still retain a 3rd of the company and the debt still goes down by 480m.Going back to the RNS which said “new equity which maybe offered to existing shareholders or investors”

I think the shareholders will see some sort of accounts very soon so they can make an informed decision on their vote

Feilb- that’s a very strong possibility hence I’m nervous about holding these now. If Coltrane and Farringdon are bought out as you say, then the rest of us will be worse off than the proposed debt for equity deal. However according to the media Coltrane were urging other investors to support their cause to get a “more equitable outcome for shareholders”, so you’d like to think this meant they were looking at the overall picture. Wouldn’t this be illegal though as normally when something like this happens, it’s one offer for the whole equity (1p a share in the Mouchel Scanario), rather than preferential deals for a certain class shareholders.

Also Standard Life Aberdeen have been very quiet and they hold 6.9% so a big amount. If they get wind of any back door deal with Coltrane then they are as likely to kick off a fuss.

Lastly going back to the Mouchel Scenario did you notice the amount of “fees” the chairman and CEO were given to get the deal through?

Do we know who the other institutional funds that have a reasonable position here?

Done a bit of digging and seems like management are proposing the same deal we saw with Mouchel a few years ago.
A new company was formed of which the equity was split 80/20 between the lenders and management team respectively. I have a suspicion something similar is being drawn up here, hence management are keen to get the deal through. Not only will they get to keep their salaries, but have a slice of the profits too so it’s a winner for them. Makes you wonder it’s not just the lenders being greedy, but the management having an equal amount of greed and hence colluded with the lenders for such a ridiculous plan.

https://www.theconstructionindex.co.uk/news/view/banks-take-over-mouchel-in-pre-pack-deal

Thanks Feilb. The RNSs certainly need investigating as my entire investment in IRV has been from the RNS from 2016 onwards which as we know now were all a work or art. They have lied through the tweet and so has the earlier ones from DW. Like you say investing is n stocks has a risk which we all accept, but how can you make an informed the decision when the information you have been given is false.

Feilb- I don’t think they can answer that on, as the answer is in the telegraph which they are out of their depth. They are far from the top management (turn around specialist) team they are made to be, and now are just following their lenders/advisers lead like a bunch of lost sheep. They have made the situation worser than Ringrose had left it.

I note you say they may regret disregarding their shareholders. Can you clarify what you mean by this? Are you expecting some sort of action from SH?

They have also wiped out the interests of many hard working employees which will also make them look like ????? heroes.

Here hop in- no one is asking for charity figures just a fair deal. If the banks were taking some pain, then no one would be arguing the toss here or indeed Coltrane. But how do you justify the banks doubling/troubling their money, not to mention the 10% interest they have had in the mean time.

Feilb- I don’t think these morons will change their mind as the last I heard they were still looking to push this deal through. Not sure what pressure Coltrane have applied or are in the process and of applying here. I’m guessing there will be some legal recourse here if the deal is forced through? Also with the latest article surfacing about the £66m being repayable should the financing not go through, maybe Coltrane will back off?

I still don’t think there is a need to reduce debt so drastically though. If they can get to £500m via D4E then they can easily reduce £300m in the next few years through cash generation and disposals.

How about they issue 1bn share at 48p which wipes off 480m. The lenders value stays the same for now but then there is a possibility of it recovering to 90p-£1. Sell this to existing equity holders at a later date for 70p and you walk away with 220m plus all the dividends in the meantime.

The deal needs to be far far more fairer imo. What do we think will happen if the deal is forced through? Coltrane and Farringdon go legal route?

Piglet on-so much for having a first class management team with a track record which the media kept repeating at the time. They were clearly out their depth, but now make it to be the situation was worser than they thought.

A very truthful and straight to the point article.

https://www.telegraph.co.uk/business/2019/02/16/interserve-rescue-shameful-stitch-up/

Meta - lol I’m sure something will come out on a Sunday as per usual.

I agree with the point of trying to wipe out private investors and DW seems to hate them with a passion. Makes you laugh when she was questioned in he commons about the share price being so low, and her response was it was down to PIs on boards such as this.

Meta- no idea we can speculate all we want only Coltrane know what they have planned, and only the lenders know what will happen if the deal is not approved. I have a feeling it will be a pre pack deal and plc will be made insolvent.

Have a read of this it’s an interesting read. Looks like the banks cannot agree a deal between themselves let alone with shareholders. It also mentions plans to ring fence RMD have not been approved yet, so is this potentially back on the cards. Finally IRV will be put into liquidation of f the 66m is not paid, which nobody wants.

https://www.google.co.uk/amp/s/amp.ft.com/content/0de0d314-305f-11e9-8744-e7016697f225

So there is a risk of insolvency then and therefore making a prepackaged option viable. Have Coltrane missed the point, or have more accurate information to base their decision on?

Pigleandtoe- further to my post below, here is the The provision that would trigger a debt default if either Ms White or Mr Whiteling are removed from their roles in certain circumstances is understood to have been included in debt documents drawn up last spring.

Such "keyman" provisions are relatively uncommon in lending agreements, though not unprecedented.