Member Info for Hexam

Juno - the business is not on a fast track to recovery. It's getting there but pretty slowly. The intangibles are largely worthless in this situation as most of them simply relate to expected future profits from Regal at the time it was bought.

Like it or not the debts of the lenders are much larger than the value of available assets that could be sold and seemingly much higher than can be got from any sale. If not then the lenders would be pursuing another way of trying to get their money back.

Btw Blakester if you do buy rights at 65p then just like those you already have you must take them up (or resell them) by April 11 or 12 or whenever your broker deadline is otherwise you could lose those rights altogether (if Barclays don’t sell them again for you).

downbutnotout - you can’t get the rights for 43p.

The 43p is roughly the current gap between the sp and the sum of the rights price and the cost of the new shares. Normally this gap would be closer to zero.

Blakester - you can’t buy shares at 65p. What that sounds like is that you may be able to buy the rights to buy new shares (for around £4.87) for 65p. If so then the new shares would be costing you 4.87 + 0.65 = £5.52. Sounds cheap but you won’t actually get the shares until April 24 at which point the sp could be very different.

Bit surprised though you are able to buy the rights as others appear to be struggling to do that.

masaimara - I get what you mean now. Even with a 43p ‘head start’ you’re not confident and can’t really argue with that at the moment.

If the lenders vote in favour and the court approves then it’s a done deal I’m afraid. We don’t get a vote.

Not sure what you mean as that 43p is normally closer to zero in a RI as usually the rights price plus the cost to buy new shares is broadly equal to the sp so it’s usually a much bigger risk.

Instead there appears to be a 43p gain here as opposed to it normally being neutral BUT I suspect it just reflects an expectation that the sp will continue to drift lower before the new shares are actually purchased.

So what looks like a good deal now may not look quite so good by April 24.

This really is a strange and depressing RI.

I would argue placing, RI, new 'strategic investor' count as different ways but get your point and agree they would really struggle to get any sort of loan - other than maybe some form of convertible one perhaps which arguably is just more shares anyway.

That's why I said limited...it's most likely going to involve more shares in one way or another.

Hi Bonkers, sorry to see another sensible voice leave the board. It's strange how you managed to pick up such an obsessed and devoted stalker - especially as you've never got close to the kind of ramping you've been accused of and when there are so many others that have (and some that still do).

Wishing you (and other LTHs) better luck with other current investments and with future ones too.

It also makes no allowance for cash which is likely to be very much higher than what they have in BTC which is now pretty negligible. They are simply selling what they mine each month, more or less, and meeting what shortfall there is from cash reserves. How long they can survive depends on how much cash they have left, what their monthly running costs are post Galaxy deal, how these might change (e.g. PPA), whether they have any additional commitments (e.g. capex), what BTC price does etc. etc. - none of which we know. And even then they have (limited) ways in which they can raise more cash.

So until their financials finally come out we're all completely the dark and certainly not able to be so precise about their longevity.

No, that sounds ok. As I said it’s the price YOU have to pay to take up the rights and buy the new shares.

The way you described it though made it sound to us that it was the price you were getting for your rights if you instead sold them. That’s about 78p per right at the moment so should be about £2.5k in your case.

That can’t be the rights price - it’s surely just the cost of the shares the rights enable you to buy and that you need to pay if you want to take them up?

Debenhams and Interserve were not D4E though - I think they both went into administration and bits then sold or liquidated?

So not at all comparable.

The other thing that may not be helping is that this is quite a costly RI so this may be exerting more downward pressure than usual on the rights price as more people are selling them perhaps simply because they don't have the spare cash to take them all up?

I think part of it is charges (inc. FX charges) but also perhaps an expectation that the 605 will be lower by the time the new shares are actually purchased (it's certainly been moving that way). So the rights price is more of a forward price (and a pessimistic one). It is unusual to have that big a gap though - or any meaningful gap really.

SaN - that's my point, I haven't seen any reference to a new company (though admittedly I haven't read through the whole document so it may be in there somewhere).

Either way I think a D4E (which is what this is) means they can just move forward as a going concern without the need for liquidation/Ch7. Ch7 is an alternative to a D4E - not a stepping stone to it.

Is it a new company?

way

@StillaNovice - I don't think they will be publicly traded if I'm reading this right - Bottom of page 112:

"On and after the Plan Effective Date, Reorganized Cineworld (a) shall not be voluntarily subjected to any reporting requirements promulgated by the SEC or the United Kingdom Financial Conduct Authority and (b) shall not be required to list the New Common Stock on a recognized or national securities exchange, except, in each case, as otherwise may be required pursuant to the Governing Documents."

No, that's your interpretation of the charts, which however they are interpreted are no reliable guide of the future anyway. Just an indicator like everything else.

BTC could easily drop $5k or rise $5k whatever the charts looks like.