The board will have to sign off on the deal give n its huge significance and I would have thought its very helpful if the creditors new what the position is before they vote on the rights issue, assuming its positive, which everyone (except arcm) wants to approve, so expect an Rns before the ie 12 Feb.
Cost of shorting shares in US. These are US regs and very risky if its miscalculated. I assume UK regs are not much diffent. Very scary numbers for ARCM... Read this...
Under Regulation T, the Federal Reserve Board requires all short sale accounts to have 150% of the value of the short sale at the time the sale is initiated. The 150% consists of the full value of the short sale proceeds (100%), plus an additional margin requirement of 50% of the value of the short sale. For example, if an investor initiates a short sale for 1,000 shares at $10, the value of the short sale is $10,000. The initial margin requirement is the proceeds $10,000 (100%), along with an additional $5,000 (50%), for a total of $15,000
Can't rule out a margin call on the shares that arcm hold, so not necessarily do they have all the time in the world to hand them back. Interesting to see how all this unwinds. Strap yourselves in, its gonna be bumpy!
And let's not forget that 43 per cent of Oil production in 2h 2019 is hedged at $69. With record production and Tolmount to come, not to mention SL and all being well Charlie1, no wonder arcm are stressed! ( to put it mildly)
Dorset Anglo Greek is correct. We are entering the end game of all the games over the last four years. Tony Durrant has played an absolute blinder to rescue pmo from oblivion and build a first class investable company that will now achieve its full potential. Well done to all those patient long term shareholders. May your rewards be plentifull and joyous. GLA.
RE: PMO Scottish court case kicks off tomorrow for the refinancing plans15 Jan 2020 10:42
Creditors' agreement must have been obtained for pmo to invest and comit to a court process. The speed at which this has been arranged is very encouraging; sounds like a "no brainer" - which is a legal term for dismissing the arcm objection in very quick time !
Seems wrong that an organisation which chooses not to abide by rules ( ie not disclosing their short postilion) can rely on rules enforcement in the courts when it suits them. Let justice be handed down harshly against those who flout the rules !
RE: PMO Scottish court case kicks off tomorrow for the refinancing plans15 Jan 2020 08:46
I would love to be in court when the judge asks arcm ( or its lawyers) "so, can you please explain how it was beneficial for Premier Oil or its shareholders, when you bet against it by taking out a record huge short position and then failing to declare that position as you were required to do by the regulations?
RE: PMO Scottish court case kicks off tomorrow for the refinancing plans15 Jan 2020 07:51
Thanks for sharing. I'm sure that whilst the Scottish Court will have to apply the law based on the facts on this case, any room for discretion will be excecised in pmo's favour as this benefits the local economy as pmo has invested heavily in Aberdeen to support their expanded North Sea operations. Big day today, let's hope right is on our side. Gla.
I think the analysts have overlooked the benefit of the Charlie 1 drill with 88E, being focussed on the zama sale, re fini and North Sea asset deal. More good news to come to push us on through 125 plus.