The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Poker – can you point me to a source that the latest covenants are not an issue?
I can confirm that I have nads
Poker – I feel there may be another reason why it needs to happen imminently. Liquidity is one potential trigger, but with the ££100m they drew down, this is unlikely (though not impossible). However, there may also be a covenant breach on the RCF for March 31 – there has been 0 info on covenants since the last breach was waived. This would cause the debt to be due and payable immediately without a waiver
Alwayswinning – I'll keep stating my opinion until the end!
"which part of they cant carve anything up without the approval of major shareholders did you not understand as part of the loan agreement rns"
Faze – they absolutely can. Shareholders do not have to vote for a company to enter pre-pack administration
It's really not up to the shareholders. The creditors are in control. Ask yourself this – what happens if they don't put it into a pre-pack tonight? What leverage might the creditors have?
Yeah yeah yeah. I continue to give active consideration to my potential offer for a Veyron as well...
My screen is showing 0% change in German markets. Very unreliable, but were up a lot when the potential bid was originally announced
I think if an extension comes, then the rights issue has a much much higher likelihood of getting done. If talks have broken down (as they appeared to have yesterday eve), this may be a bagel by 6pm.
Nope, he’s just referring to his offer period, but pre-pack could still happen tonight
I’m back for the grand finale. I’ll be in and out all day. Looks like a shit show, great entertainment for all the family
The real problem I'm having with this one is that AA is so reliant on existing customers paying above-market rates. What happens when these people stop driving or decide to switch / renegotiate?
Alright, I'm sitting on the sidelines until Monday. Good luck everyone, see you in 4 days!
TheGreatMaze – I'm sorry, but I've tried to point out facts and I repeatedly get shouted down with incorrect statements. I actually don't think a lot of people on here do actually appreciate just how easy it is for lenders to take the business, and just how much money MA has to pay. That's why I'm trying to clarify it. But people keep telling me I'm wrong and are giving incorrect reasons. I'm not saying the bid won't happen, but it's extremely important to understand whether this is a 50/50 gamble or a 20/1 gamble. Some on here paint it as 50/50 but you have to use facts, evidence, rationality and logic to assess the odds and it certainly doesn't come out at evens
I agree with the person who said we all need to go for a beer. Then we can yell at each other for an entire evening :)
Remember that the lenders can credit bid up to the face value of their debt
It’s acrually quite sad that people attack others and ask “why are you here?” when insightful knowledge is brought to the table.
It seems you’re only allowed here if you don’t know what you’re talking about?
Warik - I’m just looking out for people who listen to you and others on here you quite literally lie (probably without realising) about what people can and can’t do, and about how debt works. People need to realise that this is a gamble, nothing more and nothing less
Egg – you clearly don't understand the difference between a pre-pack admin and free-fall administration.
Did suppliers get paid in Interserve? Oh wait, it was a pre-pack and all operating assets and liabilities were carried over...
Correction – put up OR shut up for MA
Oh and also stop lying to people about April 22. That is the deadline that MA has to bid. BUT the BoD can do whatever they want in the meantime (like put the Company into a pre-pack admin), and don't have to wait until April 22 to do anything. It's a "put up and shut up" rule for the acquiror, not the target