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I honestly hope that the people like me posting on here caused some people to sell up before this happened.
Yep, game over I'm afraid
Papillon I'm afraid that, while MA may have until April 22 to make an offer, the company can file for administration in the meantime...
Chrispye84, Unfortunately, you're probably not correct here. Once the debt is sorted at a new entity, this could be a credit-worthy business and suppliers will give normalised terms again. They will close a few stores, sure, but the lenders will have a plan here that gives them a good return on their investment.
Anyway, I'm off for a game of squash. Good luck arguing against each other and please don't buy this stock if it trades.
He didn't make a firm offer because it was way too much money. Refinancing the debt at par would've doubled SPD's net debt and would've been a huge hit for existing SPD shareholders. He wants Debs, but not enough to throw money down the drain.
And yes Deepestblue, rationality has prevailed here, unfortunately for existing shareholders. Treat everything you read with huge skepticism and assume whoever's saying it doesn't know what they're talking about or is lazy. Including what I'm writing.
People have said it before, the lenders have the board’s balls in a vice and they have tightened it. It’s this or the lenders could, in theory, petition for winding up, forcing the company to file for something like Admin anyway. What would you do if you were the board? Let the company liquidate?
The underlying point is that valuations show there’s no value to the existing equity at the moment. So unless someone wants to keep you whole, you’re unfortunately toast
I actually disagree mate. I think that they think they can turn the business around and recover their investment over time. They wouldn't get back 80-90% under SPD's proposal unless he was putting in a rights issue to pay down all other debt (less the write-down amount) which is much larger than £200m.
Just to be clear, the reason why these proposals are being rejected include (i) Write-off of debt by lenders and (ii) no certainty of completion.
This last one is crucial. MA demands he be made CEO ASAP (to basically trying deal with the lenders) and has not given certainty that the money would actually come in once this happens. To the lenders, and the board, anything this conditional cannot be taken seriously
KNIGELK – The lenders don't have to write off £1 of debt if they don't want to, this has nothing to do with the board. They are mere puppets
I think this is most probably over. I hope they suspend the share so no-one else gets suckered in
See you all 15 minutes before RNS o'clock for even more Ashley vs. Debs fun
Or will it be more Ashley vs. Jeremy Kyle
Episode: "Debenhams Didn't Do What I Said And Now I'm Suing Them!"
Good night all ;)
It is quite novel to do a CVA after a pre-pack. Usually, insolvency is threatened to incentivise landlords into accepting pre-pack terms. I guess here, they're going to bring the Company over to the NewCo, then threaten to blow NewCo up unless landlords accept a CVA.
It's financial engineering at its best (or at its worst, depending on which way you look at it).
I'm just speculating here, though
I said earlier I'd be mildly surprised if they let this trade tomorrow, but stranger things have happened I suppose
Can we please keep it classy?
Poker – if you're part of the syndicate, you will take private ownership. But if not, you may get cash at whatever valuation comes out highest. It can happen in a number of ways. You could even be schemed to take the private equity.
But I take your point completely, the bondholders would jump at getting paid out at par...I just don't think they think it's very likely.
Maybe they'll just accept a Rocha John Rocha polo shirt that you'd imagine the likes of Mike Ashley wear around their favourite Algarve holiday destination?
Yep that's what SPD put in their RNS.
They put it in all of their RNS items. Personally, and because I don't think he will bid, I think he's keeping that there so that when this goes to a pre-pack, he will try to sue the board and claim they didn't give him enough time to bid.
Plus, the way the press releases have been thrown about today, it doesn't appear that talks are constructive.
HK, they could definitely be still negotiating, but a couple of the news outlets said over the weekend that the pre-pack would be on Tuesday if the Monday deadline was not made.
It's a very very long shot. I'd be mildly surprised if they even let this trade tomorrow morning to be honest – it doesn't really help anyone. Even if shareholders weren't getting wiped out, wouldn't it be easier to just suspend it until people know what's going on?
But alas, I fear this thing is going to be pre-packed fairly soon.
It is often incorrect, but they do often have sources close to the negotiations that leak to them. It gives them an edge.
However, I will admit that some of the news around Debs has been contradictory.
Every major news outlet now reporting that Admin is imminent. Sorry guys, but barring a miracle, I think the game is over