RE: re more lending4 Dec 2018 12:04
Alto, I'd make the exact same decision if I were in your position - might as well hold onto £300 worth of shares on the remote off-chance. As you rightly say, you have effectively been derisked almost entirely by the SP's dire performance.
As to your previous post re "the banks can't lose", I'll disagree with you there.
In terms of lending AVN money, look at the bondholders for example. Only 8 months ago, they agreed to swap $500m of interest-generating bonds for equity, in return getting over 90% of AVN's newly issued share capital. That shareholding is today worth just £60m... or $77m.
So they're currently taking a huge bath - and of course now as mere shareholders, they have no supernumerary rights over amounts raised in any asset firesale, should the worst happen.They're just at the back of the queue like all other shareholders.
(Of course, largely the exact same bondholders still hold around $450m of other bonds on AVN, so at least they're still further up the queue in that extent).
You may ask why the bondholders agreed to such a deal with the April D4E swap, given how appallingly it's turned out for them - and bear in mind, these institutions are neither thick nor charitable. IMV it's the same reason that the banks decided to extend AVN's borrowing facility by a last little bit - not to do so would in their considered opinion bring about a definitively worse result for both the banks and the bondholders.
As to GCCRa? I still can't make up my mind if he's the world's most blinkered zealot or the world's least effectual ramper. It actually makes no difference though - anyone would be in the deep and smelly brown stuff with AVN shares if they'd ever listened to any of his words of encouragement, regardless of why they were uttered.
AIMO.
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