Member Info for Hexam

“Far too speculative”

Which bit?

The company said they were down to their last $4m before they were rescued by the DIP financing. Unless that was a lie (an accusation that would be VERY speculative indeed) this confirms they had nothing left in the tank to pay CP. Yes, they could have paid any settlement in instalments but they have not been generating surplus cash to even do that (unless you think the company is lying with its numbers again). Besides, those unpaid instalments would now just be another unsecured debt in Ch11 so CP wouldn’t be any better off anyway.

It seems to me the vast majority of speculation on here is coming from those clinging on to hope with statements like the judge may take pity on us and not approve the RSA but cut a slice instead, the numbers the company have released are falsely painting a negative picture, there might still be a bid large another for the whole company to leave us something (even though it needs to be more than $6bn and the marketing process has closed for all but the RoW) etc.

Any of the above is possible but they are rank long shots (there’s nothing fifty-fifty’ about this). The best hope appears to be that the shell we are left with might end up being worth something, as that’s all we’ll be left with if the RSA is approved as it is - and that IS a fact. Read the RSA or disclosure statement if you’re in any doubt.

HC - I don't think it's even that now. It seems moribund.

Mike - I'm not sure if this is what you are referring to but it suggests that unlike normal RIs anybody that didn't take up their rights (or sell them) won't benefit in the rump from any price the shares are sold at above the offer price. I don't think it necessarily suggests that all must be sold - so the underwriters may have to pick up for themselves any not sold in the rump? In the last TUI RI though all the rump was successfully sold.

"The New Shares to which those unexercised DI Pre-Emptive Rights relate may be sold in the Rump Placement, but shareholders or investors will not be entitled to receive any proceeds from such sale, including any premium, as such payment is restricted under the laws of Germany."

"Will it remain publicly quoted?"

No. Again this is clear in the RSA.

Yes, Tegop. Let's agree to disagree. I don't know how you conclude from the docket you reference that the screens in Jersey are out of scope but fair enough if that's the way you interpret it.

The RoW part though is not open to interpretation in my view. It's covered in many places but this is the most obvious:

"As the Plan will be filed before it is determined whether a RoW Equity sale will be pursued, the Plan contains a mechanism whereby the amount of the Exit First Lien Facility will be ratably reduced in an amount equal to the proceeds of any RoW Equity sale."

But if you're still not convinced by this then I don't think there is anything more I can say that will change that.

I agree Waffen that there are various ways this could still end up well. A Hail Mary bid, a benevolent judge, the empty shell proving of some worth etc. All long shots but they cannot be completely dismissed.

All I am saying is that IF this plan gets approved then any sale of RoW will not benefit us. That is not conjecture or putting 2+2 together. It is clear and unambiguous in both the RSA and (the more readable) Disclosure statement. They have told us the answer on this and very explicitly - we don't have to try and search for hidden clues to try to work it out.

*sale

It was clear though in the RSA that we will get nothing from any RoW sell. It all goes towards reducing the size of the new loan that they aim to raise.

They didn’t need to warn us again specifically on it.

Thanks Wolf but it’s actually quite a refreshing change being called a ramper rather than the lame accusations I usually get about being a shorter just for trying to be objective about the mess CINE are in.

No, it's not like an IPO as the new shares will not be offered to the public but issued to the lenders.

Some way down the line they may take the company public via an IPO or sell it to (or merge it with) another company.

Marketing Process Timetable:

April 10 - Deadline for submission of binding offers to acquire the RoW Equity

On or before April 24 - Debtors will file a motion seeking to (a) establish bidding procedures and (b) approve entry into a definitive purchase agreement with respect to a sale of the RoW Equity

May 5 (subject to Court availability) - The Bankruptcy Court will hold a hearing on authorization of the Sale and Bidding Procedures Motion

May 10 - To the extent the Debtors receive multiple actionable final bids for an acquisition of the RoW Equity, the Debtors will conduct an auction

May 12 (subject to Court availability) - The Bankruptcy Court will hold a hearing on authorization of the Debtors’ entry into a definitive purchase agreement for the sale of the RoW Equity

Yes Avocet but if you sold the rights then whoever bought them would then presumably take them up and so TUI would still get the extra cash anyway. And even if they didn't then TUI would either get the money from the rump placing or, failing that, the underwriters.

So regardless of your choice the company gets it 1.8bn euros one way or another.

"Better just to let the board die"

Says the poster who has posted on it six times today. You really are comedy gold.

@scmdcyp - I'd be surprised as I didn't think any brokers went beyond today (and some have already stopped). It should be clear what the deadline is though in your account - probably under corporate actions - so best to check for yourself.

Mooh - the loss will be at least $150m as they will need to include the losses on both Helios and the machines that were sold cheaply. They may also write down the value of the machines they still have.

The sale transaction is for RoW only. Any proceeds from the sale will just reduce the new loan that is needed to be raised (by whatever the sale price achieved is) - it will not benefit existing shareholders. All this is in the RSA.

Need about 30p to breakeven so not as high as some but still unattainable I think unless BTC goes absolutely bananas.

It’s even become a poor trading share now as just doesn’t move that much anymore - even on BTC spikes.

Sadly I am invested. And I don’t like being given orders though to be fair I am just waiting for a decent spike to exit completely.

Plenty of US miners are in a far better position so hopefully will get my money back with them. All surged on BTC going to $30k - whereas ARB limped.

It is loss-making, the most inefficient ‘large’ miner, has no funds for expansion and very little now by way of assets (and most of those are collateral for debts).

Apart from that it’s all looking peachy. Just look at how the sp has reacted to the recent BTC rise…

They have been underperforming at around the current level for at least 18 months - curtailment just meant some months were a lot worse.