ARCM would be well advised to use this window of opportunity to start the process of closing. Their resistance to the pmo plan is desperately flawed and futile, so they will have to do this at some point . Better to do this now at these prices before poo recovers, as it surely will. Buying back pmo shares post the creditors meeting on 12 Feb will be very, very expensive
As a legitimate stakeholder with a significant personal shareholding in pmo, I will take arcm, s invitation to get involved. I will be asking them : How is it that all other creditors have approved the SoA except arcm. How is it that after the Rns announcing the asset purchases that the sp went up almost 20 per cent if it was such a bad move How do they reconcile advocating risk reducing actions to delever the balance sheet when they have bet against pmo share price with their record short How can they be an advocate of pmo, s best interests when they will benefit from a fall in their sp and have failed to comply with the shorting disclosure requirements Email to be sent their pr agency tomorrow for answers. I'll post the response but not expecting one. Let's see Cheers
Beer bull agreed. In any event, it matters not what arcm think of the strategy, the court at the SoA hearing is only interested in whether pmo have the requisite approvals in accordance with the rules. If they have (which they do) it's going to get approved. Simples. That why there is a sea of blue large buys posted after trading despite poo tanking on Friday. The market sentiment has finally changed in favour of pmo. Hell knows what the sp will be if poo gets to, or near 70 again!
RE: ARCM desperation = a state of despair, typically one which results in rash or extreme behaviour.24 Jan 2020 10:14
Just a thought.... wouldn't it be sweet justice if the FCA prevented ARCM from voting on the deal as punishment because they failed to disclose their short position as they were required to do . In other words, if you dont play by the rules, then you are disqualified from playing the game .
RE: ARCM desperation = a state of despair, typically one which results in rash or extreme behaviour.24 Jan 2020 10:06
I cannot see that TD or Rose will have miscalculated the cash flow forecasts from the BP asset purchases as alledged by ARCM.If the mgt in pmo are good at one thing, its getting the numbers right. Also, all the other creditors appear to agree with the sums. ARCM will not prevail on this futile resistance.
RE: VOTE FEB 12TH - TICK TOCK ....23 Jan 2020 13:44
I don't think they can hold back market sensitive news for their own advantage once agreement has been reached, that would be market manipulation which is not allowed by the FCA who would come down on them like a ton of bricks.... wouldn't they? Hmmmm!
Tax on the Zama sale will depend on what is sold. The asset, which is in Mexico jurisdiction, or the legal entity which owns the asset. If this is a UK company then UK tax jurisdiction applies which opens up the possibility of UK tax losses being set against profit on sale. We will have to wait and see the details. Rgds and GLA.
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!