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So I Own Shares and I’m not Voting for this. 25% of Shares Under Rules cannot be held by Institutions so this means Private Investors have these. No PI will Vote for this. Hoskins won’t kiss this gooodbye. £750m in Revenue !!!!

It seems we are stand alone and the Banks have vested interest in this handing over on the cheap.

Can we keep the Wolves from the door ? Hoskins c’mon. It’s a Big World out there.
Surely 1 Bid at first attempt doesn’t get this for £2mill ??? ??

Yes let’s just hand over £750.000.000 in Annual Revenue for just £2million.

We have to start somewhere and the Company is Safe re the Offer so well done Virgin and Stobart etc. If they get it for £2m then we’ll done to them.

1p puts Shareholders in last place should we accept. They need 75% of the Vote.

Does anyone know when the Vote takes place and if Virgin / Stobart are allowed to buy Shares as is current trading rules ?? ...

Surely Hoskins won’t Vote for this...

At present 1p offer on the table guarantees Flybe future and jobs and Employee Pensions / so the Board and COW have to recommend it to Shareholders. It is their job to protect the Company.
1p is derisory given that they get 100% Equity for £2 million / all be it a healthy Cash injection and being part of a Bigger Group.
The Returns on £2 million Equity potentially are ASTRONOMICAL. YOU ARE TALKING 100000% if they can make it Profitable. And just £2m Profit means a Price / Earnings Ratio of JUST 1 !!!!
So who Wins ???
Current SH need to Not agree to this as WE OWN THE COMPANY.
We can raise the cash ourselves surely !!!

Thank you for reply Moniman. I shall remain on sidelines for time being. I just feel the Profit they make is not in any Danger and so the SP should be double £1.44 for me / back to where it was just over 12 month ago. The SP Decline doesn’t make sense to me ...

I Repeat ... The Profit made will cont and Grow annually here. IMO.

I feel the RNS was poorly communicated re Divi Cut. Yes I agree with them re allocating this money towards producing Assets that fuel Growth so more Value there.
Just felt they were basically saying / If you want to Sell / then Sell.. Totally Glossed over the Cut and did nothing to grow confidence.

I still feel the £1 Decline should be the easiest thing to Explain. But I am non the wiser ? ... Anyone ???

The Dividend Cut in no way Accounts for the £1 Decline in SP from over a year ago. The Divi Cut announcement was in early Dec ? So that doesn’t Stack up / Although now we are here at £1.44 it will surely contribute to any possible continued fall in SP.
Re Flybe T/O Yes I agree with you it may depress SP further as you would say Risk would come into play. Do we really think Stobart have the Skills to run that Airline successfully ? Unproven imo. But the Revenue £700m and Stable at that is the Carrot.
My Question still stands ... Why £2.50 down to £1.50 ? They make Good Profit and can Grow the Business / whether Organically / through Aqusition / or both !!!

Hi all. Considering an Investment in here for a while but watching SP drip down from £2.50 really is remarkable given that imo Company moving forward. I know about the Boardroom disharmony and inc Woodford / but can anyone on here explain to me why on Earth this is falling to below £1.50/Share ?
Can someone explain why this was not more fairly Valued and with margins to Progress when it was £2.50 ?
I just don’t see it ... Why the SP Decline ? ...

If T/O happens no better time than when everyone is sleeping / winding down. If it does then it will be quick.

The Company will continue I have no doubt about this. A Takeover is the only Option if foreign (American) money wants to get the Full Value out of this fully rinsed Share Price. The Creditors are in the business of Credit and Not in the Business of Taking Risk beyond their Remit and so are not interested in owning any serious % of the Company.
If Equity Deal is had then the Creditors will have a Sell off of their Share back to the Market over a 2 year period.

America see GB as the number 1 place to do business outside their own. No doubt about this. It may not happen. But one thing is certain. With the Dollar vs Pound at 1.20 now vs 1.60 in old money / and IRV High Revenue vs Low MCap and still headroom in Working Capital / then more chance now than ever before. This is a Fact.

Far Fetched idea ? Nobody is talking about the possibility which lends me to believe it is possible.

Change your Dollars to Pounds. TakeOver with American sourced money. Take it off Market for £100m.

Pay off the Debt. Re structure the Company. Change the name. Re Float it in 2 to 3 years. Pound returns to higher level v Dollar. Change your Pounds back to Dollars. Retire Fishing.

This is the only scenario I see Value in the 12p SP. The possibility of a Full T/O. Because the Company will continue. No doubt about this.

If D/E happens in any way whatsoever then the Shares are worthless imo as it stands.

No Big Institutions in here (Yet) of any significance. Given the MCap £20m and Revenue £3b with £150m / Annum Profit And Yes £700m Debt.... Then re the Debt for Equity / If a said Group of Investors with £800m wanted this / surely £100m or less would get you the Company with aggressive Share Buying.

So your £800m would get you a Company with £3b Revenue stream / £150m Profit per Annum. Reduce the Debt by £600m to Leave £50m and that leaves you £100m as working Capital.

Potentially this is now a Cash Cow. IF THEY CAN DELIVER the £100m plus PROFIT. FF 7 years and they are printing money.

THIS IS A POSSIBILITY.

POUND ALSO LOW V THE DOLLAR.

ANY AMERICAN COMPANIES / HEDGE FUNDS CIRCLING ??? ....

The BOD will have to hand out free Shares as compensation to current SH as part of the D/E swap deal in order for current SH to retain any Value whatsoever once new MCap is established.
This is a Big ask / given the BOD have given no guarantees and also have alluded to “Material Dilution” will occur to current SH.

For me the only hope to hold onto is Standard Life are left in here at 5% (hopefully) and they will have some influence over any handout. I somehow think they have been left in there to Stop Armageddon and thus a zero MCap.

The Company is basically trading now as Insolvent. So you buy now and you are buying the Company as it is.

More Value in buying a Solvent Company Post Cash Injection.

The way BOD have dismissed current SH is appalling but maybe necessary given that their is no bread left in the cupboard.

I am absolutely convinced that Interserve will go on. I think they will change their name in time to escape the Current stigma.
I am absolutely convinced Current Shareholders are relying on a handout from BOD due to pending D/E swap. Meaning current Shares are worthless. I do not understand why this is 12p / only explanation I find is that the cash injection of £200 m ? Will positively create a MCap of £300 m (due to liquidity and dividend re in statement).
The Creditors will then Sell off (what 99% of the Company ?) and this will depress the SP for some time.
So why don’t the Institutions buy now at 12p ?
Because the Value is when the MCap re establish and the Creditors Sell off Post D/E.

Metamorph - Yes of course the Market Cap is 12p because x the Shares this is what people think it is worth.

But how can any Value of Stock at 12p be transferred or carried over Post D/E swap ? At £200m D/E swap it’s impossible to carry over that Value ? Yes .. ?

I mean the SP actually went up 4.96% according to LSE. How ? ....

This cannot be a normal D/E swap ? BOD need to start communicating to PI how they intend to support them or the outcome of D/E. All SH should seek advice immediately !!

Can someone explain to me why on Earth the SP is rated at 12p ? It’s worthless. £18 m MCap and then do a D/E swap of £200 m. That means anyone that owns Shares in the Pie now / Imagine you are locked in that pie ; but then a bigger pie takes over 10 times the size of yours. You do not own any share of the Big pie.

The only reason I can see Value in current SP is if IRV negotiate a compensation Share Issure for current Shareholders. Creditors will only allow 25% to current SH as a softer as I really don’t think Creditors will want 99% of the Company for their buck ? Something will have to be done.

The whole lack of communication to SH on this is appalling. How on Earth is this 12p ???

Anyone ????

Stockabc.

Dilution at £20m MCap vs £200m injection DforE swap is a 10 fold Dilution so I completely agree. And that is Best case scenario. The only hope for current Investors is that they allow Current Shareholder participation which is the only way that Current Shareholders can claw any % back of Value. And it will be a low % at that.

And there has been no guarantee on this. BOD treating Current Investors with contempt. Go to the back of the line.

Yes they spoke of Deleveraging Plan back in April but things have conspired to drive the SP down because basically Current SP bears zero Value.

King Arthur. Good Post.

I don’t agree with your £150 Debt Outcome. The Creditors face a delicate balancing act between assessing Equity Value of Company vs Net Debt vs Maintaining returns on their original lending (They aren’t going to swap a high ratio of Debt for Equity as Equity is at Risk).
Rest assured they will swap the minimum mount of Debt for the Highest ratio of Equity %. They won’t do themselves out of a job (IRV oweing them Debt) in return for Capital that is “At Risk”.
Not “At Risk” in the meaning of Bankruptcy as Solvency would Return / but then they will have to find buyers of their Shares over same period of the money owed to generate Income.
One thing is certain. The Employees or BOD or Customers won’t pay. Shareholders will. And that is a Fact.

Hard to say where the Value is as too many unknowns. I just don’t think the Creditors will throw in £500m to reduce that Debt to £150m. That would be great for new Shareholders as Profit and no Debt.

I think they will offer £150 to £200m Tops and based on current 12p/Share at £18m MCap, then which ever way you look at it they can set their own Price they pay for their Equity Share.

They will set their levels based on what I’ve just said and attempt to leverage their Money out over time. No easy task when you own 99% of the Company.

However ..... We shall have to work out how much a £3billion Revenue Company making £150m Profit per Annum (Reasonable) is worth with a Debt of say £400million / when at present they loose cash.

Lol Reg !!