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Poker is right, PIs often don't get this point. The Company will continue just with new owners
No revision to my Initiation of Coverage, Sell Rating, PT 0 report highlighting S&P's current credit rating of D
Share in auction. Good luck if you're trying to get out
Poker, I'm with you. It's just that what you're suggesting is a hell of a lot of cash. It would be overpaying for the asset and a huge risk for MA. Not impossible, but looking equally as unlikely as it was this morning IMO
Pearls, it's all so he can scream after the pre-pack that they didn't give him time to bid. But they're perfectly within their rights not to
Double, I would say that it makes a bid the most likely of the SPD options. But I wouldn't say it was any more likely than it was at the beginning of the day (i.e. very unlikely). It's just that the other options are probably dead
Yeah I mean this just has "game over" written all over it. You're looking at very very long odds now. Just half an hour ago people on here were adamant that a deal was being done behind the scenes. The only option for MA now is to take out all the debt at par, which just seems way too unlikely
Poker, I like your optimism. But this is thrown on the end of every RNS that they put out
It is literally written there dude. It says "significant and negative impact on Debenhams' current shareholders"
No it was the rights issue that was rejected. Not anything to do with price of a bid...
"As such, Sports Direct is disappointed with Debenhams' response. Sports Direct believes that, in the continued absence of any such engagement from the board of Debenhams and Debenhams' lenders, there is a likely significant and negative impact on Debenhams' current shareholders and other stakeholders, including suppliers and employees. Sports Direct therefore calls upon the board of Debenhams and its lenders to actively engage in negotiations."
Even SPD is telling you to get out...
SPD has all but given up.
Pearls I think the real thing is that Deb don't really have to put anything else out there. If there's no agreement, and they don't think there's likely to be one, then pursuant to their RNS a week ago, they'll just do the pre-pack.
If they think there's a likelihood of agreement they may recommend an extension to the lenders, who may or may not accept
Media reported this over the weekend – it's really down to the lenders, not the company
Spot on. This was perhaps the biggest clue of all. Plus, thinking he'd bid 5p per share relies on his being generous to existing shareholders (essentially giving them money for free, when he could pay less if he wanted). This seemed unlikely from the start
What's your point? Probably short closers, speculators, market makers etc.
Yup, it's a bloodbath out there in retail. Didn't see that suggestion. Enquest has been on my watchlist for a while now but no time to dig deeper!
- It's a little too early to be saying those people were "mugged"
- Yep, Pearls you're right, sorry I misspoke. The effect is as I stated. Effectively, insurance providers stop underwriting insurance policies against Debs defaulting on its trade debts. So instead of previously offering, say, 60 days for Debs to pay, they'll now offer 30 or 20 or 10 or even cash on delivery. This ultimately kills off a lot of retailers until they've sorted out their balance sheets
Pearls I imagine the debt increased because suppliers massively tightened their terms after Debs lost their insurance. Working capital squeezes in a company like this can be huge
Sorry, what I meant was that if we haven't heard anything about covenants and other conditions / milestones (which could be present in both the RCF and new facility), I think it's not safe to assume that the debt won't be due and payable very soon.
That's my only point