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Yeah Pearls, Deb Plc sold ITS shares in a holding company directly below. The group structure is available in an Administration doc on p7: https://www.fticonsulting-emea.com/~/media/Files/emea--files/creditors-portal/cip-emea-public/debenhams-plc/sip-16-disclosure-letter.pdf
I believe the £101m you're referring to is effectively that (i) the lenders credit bid 100% of their RCF plus bond debt, (ii) when Celine UK Newco 1 Limited paid £101m to Deb Plc for the shares in the holding company below, it repaid the lenders under the NEW facility in full (plus a little extra to pay some fees / other costs at Dec Plc). The lenders effectively moved all their debt to Celine UK Newco 1 Limited and the consideration for the transaction was effectively the maximum it could be without leaving a return for equity holders (i.e. 100% of the face value of the debt). That's my understanding anyway.
After the fact, the business will be marketed by Lazard, giving the lenders the option to cash out if another bidder comes along (who will be buying free and clear of debt – proceeds will flow to the lenders if they like the offer). If this bid comes out at a higher number than the total debt, there would be a return to shareholders. This is very very unlikely though. Process may take months in any case.
At least someone still has a sense of humour!
With distressed companies, they are prepared by a company's internal IR team and then heavily edited by the company's legal and financial advisors. Learning to read between the lawyers' cryptic caveated language is an essential skill
Agree with Meta, though, that RNS was pretty clear. I know it said "some of which" but you should generally take that as "almost certainly"
Yeah I get where you're coming from, but unfortunately the RNS announcements are never the full picture.
I don't know why MA is crying out loud now, though (and claiming conflicts of interest etc.) – Lazard are literally about to market the company (i.e. sell it to the highest bidder which may include the lenders credit bidding their debt). If he wants to bid for it, he literally can bid for it in that process. My suspicion, though, is that he would not bid an EV high enough to pay off the debt (if he even bids at all).
Meta, I know it's very desperate.
Devon – yeah in the US bond denominations are typically much lower and thus available to retail investors. The 100k standard in Europe is a little ridiculous and prohibitive to PIs, which is annoying. In Devon over Easter but not Salcombe.
Poker – of course, MA wants to keep up his false image of the man of the people. This is a farce, though. He will probably bid low for the Company in the ensuing marketing process (in which the creditors can also credit bid if they want to)
I feel like if he bought the debt, he may have forced the same outcome as now. It could have been just as bad for existing shareholders. I think it's important to realise that MA is only concerned about shareholders of a business when he is a shareholder. He is no knight in shining armour, he is and always will be entirely self-interested.
Devon – long the bonds and short the equity is often a great trading strategy, provided the bonds are in the money or the fulcrum security. Problem is that funds wouldn't have wanted to sell to MA and any large purchases would've pushed the price way up. No way he could pick up £200m face value for 50¢.
P.s. love Devon as a place
Cheers Poker, tried to be factual wherever possible, though it did sometimes get heated.
Right all, I'm off for the evening. May dip in occasionally over the next few days.
Sorry to all those who lost, and well done to those who called it right. Hope everyone learned something
Peace out.
Not at all – wish you the best of luck in your future investments, sir.
Sorry, I had to lower myself to your level after that initial remark. I mean, honestly, I was genuinely trying to help people on here and you're just like "get a life". Pathetic.
Yeah let's not fight about it. Like I said before, if anyone is in London and wants to grab a beer to shout at each other, I'm more than happy!
21alpha – alright mate, sorry you lost money here. Better luck next time
No hidden motive. I mentioned I was short from early on as I thought the most likely outcome was a 0. Not trying to influence the price (as I had no intention to close position), just wanted to inform others of the way it was likely to go and why
I am, HK! I tried to warn!
No, Hira, I certainly am not that guy on Twitter! Just looked at the profile – posts look pretty stupid
Hira in absolutely no world did I ever say there would ever be a bid...
I was always saying a bid wouldn't come. Please look back through my posts
Thanks Gunthorpe. I'm still here because there are still lessons to be learned.
Applegarth, mate, which law are they breaking exactly?
No intention to bid...
Love_You – nobody on this board had anything to do with wiping out the equity.
SPF – please seek out help as others have discussed below (116 123). There are more important things to life than money, and everyone here wants to make sure you're okay. There are many good things to come in your life and the only way to kick start that is to talk to people who can help you