Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Yes. GS increased their B listed shares. Reduced A listed shares. But overall increased their holdings..
Tomorrow will be more RNS of institutions increasing stakes and some new ones buying in.
Ignore negative posts. These are people paid to scare people into selling..
Yet Goldman Sachs increased there stake. They do not do this to lose it all
No Goldman Sachs have increased their shares in Cineworld. But if you had any clue about shares. You would know about A and B listed shares.
Goldman Sachs swapped A listed shares for more B listed shares. Increased there holdings and voting percentages
Has Polaris bought back in though. Why did no one else sell out. Was Polaris not in the loop and not consulted. Was Jangho as second largest share holder told of things and not sold out. Why did Mooky not sell off his families shares before the announcement. Why did none of the board sell up.
If you want to know why Polaris sold. Call them. They can buy back in and get their percentage back and more.
Is Cineworld’s cause linked to lots of other businesses, yes. Is Netflix likely to file for chapter 11. More than likely. Carrying 16 billion in debt, borrowed off junk bonds, so exposed to any interest rate rise.
Are the studios struggling to make any profit. Yes.
Why did MGM sell to Amazon, something to do with Bond making a loss and their ability to no longer service their debt.
Will the US government need to bring in economic support post covid. Probably. Biden is a one term president, so can bring in economic relief to help support US firms. To help the, get back to normal trading in four years time.
Are people on here trying to scare retail investors to sell up. Only for institutional traders to pick up their shares dirt cheap…….
IMO
Streaming companies are losing billions a year. They are now cutting back on productions for streaming. Not for cinema. Returning to 100 day windows. Subscriber numbers will fall. Who would honestly pay more for less. Streaming companies increasing prices will reducing content. Also Disney+ will stop annual subscription. Meaning they will be increasing the price again within a year. Studios not likely to make a profit on streaming till 2024, if there pie in the sky predictions come true. Which the market does not believe. Studios need cinemas. It is an unshakeable bond. Not to mention actors and directors now have clauses in place to force cinema releases on their films…as For Polaris, they can buy back in and get their stake sold at a reduced price. let us see over the coming weeks if this will occur. it is what most traders would do. IMO
Steamers are lo
Polaris out last week. But what price did they get and who did they sell to? Wait to see if Jangho picked up their shares. They seem to be the only institution to sell. Time will tell, more buys again today…
Cineworld are not insolvent. Can do chapter 11 in the States while still solvent. Cannot do this in the U.K.. that is why seeking CVA.
To me this has been carefully timed by Cineworld. Their RNS was released just before the studios quarterly results came out. All losing billions.
Maybe there feel the U.K. or US government will have to do more Covid bailouts. And by being first in the queue, they will get the money first.
Either way the two RNS were designed to drop the SP. No other way at looking at it. They do not say the actions they are taking, only potential actions.
This is to put pressure on a rescue package. Cineworld as is AMC is getting killed by interest payments on the debts and rents. Freeze these for a couple of years and give them time to pay the balance off more.
We will see. This share will stagnate around the 2.5-3.5 for a few weeks till some deal is done.
All I know is their will not be a dilution of shares at this stage. Not until the SP has rise. Higher to make this a possibility.IMO
Warner bros just lost three and a half billion for the last quarter. Figures to scare the lenders in keeping Cineworld afloat for a while longer. So much exposure to the studios and the streaming experiment has not worked. Impact now being felt. Take down Cineworld, AMC could follow. Then the studios. Lenders looking at hundreds of billions in losses. They cannot afford that and to continue in business. Lenders have over exposed themselves. Only course is to lend more and put off repayments for a few years. Kick the problem down the road..
I am sure Cineworld’s debt is higher. But so is their potential revenue, as well as connections to other businesses. Cineworld and the whole film industry are so interwoven, that take one out, the rest fall. Lenders exposure is far higher. Hence Mooky trying to get a more favourable deal. Whether this plays out. But debt for equity swap is a non-starter till the sp is around £1 a share, then they are still only getting about 23p to the pound. Currently will be getting under 1pm to the pound. This is saving a dilution for now. IMO
The big issue for dilution is the SP is to low. 5 billion in debt to 40 million in equity does not go. The person who leaked to the WSJ did so to protect their shares. I feel the emergency loan who had to be paid back is the one who is demanding payment. Yet HSBC is the large debt holder. So is more in the driving seat. Lots of long meetings are taking place. I expect this to continue for weeks. As there is not a simple solution as the RNS tried to make out. Mooky probably banked on the complexities of the situation. He was the first to come out in the pandemic about the struggles. Then got two million off the US government and money off the UK government. I think he released the RNS to be first out to say the pandemic has had long term repercussions. So many other businesses are in the same boat. And governments are facing billions upon billions of debt going up in smoke. Particularly if they raise interest rates. The Fed is going away to discuss just this. Moooky’s timing is perfect for this. AMC is in the same boat. Hollywood are concerned. No cinemas, where do there blockbuster movies go. They have billions spent on movies due to come out over the next year. They cannot afford to put these on streaming platforms. They have borrowed money off wall street banks to finance these movies and pay interest on these debt also. They may need to step in and buy the cinema chains, if they can get the finances for it. I am sure Amazon is looking at the falling AMC price and ready to pounce to snap it up. IMO
I presume would need to get majority shareholder approval first. Feel whoever leaked to the WSJ was a share holder of some standing, who knew by there actions, crashing the SP would make a dilution impossible.
AMC have similar debt problems to us, there’s is a little more. Although meant to have more cash. Can see both chains going bust. Feel studios slowly starting to realise the loss of cinemas impact upon them. Disney+ taken Avatar off before it’s release back into cinemas.
With housing market issues in America and so many other businesses now caught up in large debts from Covid. I feel lenders are crunching figures that if realised as losses, would wipe themselves out as well. Going to be an interesting few months. Even Amazon made a 2 billion net loss last financial year. IMO
But what was VUE’s debt. Probably nowhere near 5 billion…
At its peak, Cineworld was not worth 5 billion. Probably will never recover to £3 a share. Lenders taking control of a company with so many issues and politics. Would be lucky to get it to a billion. There best bet is lend a bit more and look to recovery of debt in the long term.
Probably find they are buying. Retail investors are selling. They have maths geeks and worked out lenders are between a rock and a hard place. As are cinema landlords. Scare stories does not effect traders as they know the press knows nothing. They have contacts at the lenders and know the trues score. Don’t forget the leak to the WSJ caused the impact it was designed to create. Someone is using the media for their own benefit. IMO
The only way out of this for all parties.
Freeze existing loans to start repayments and covenants from 2026.
Reductions in rental of cinemas till full capacity back then landlords to receive a small profit share.
Lenders to lender 500-750 million more liquidity not to be paid back till 2026 and the Greidinger family shares of 20% to be placed as collateral.
Anything else will not work. Giving the hard times coming up in all businesses. This is the only workable solution. IMO
200 billion shares…lol there is a limit to the number of shares a company can list by the stock exchange. Also which lender would swap the five billion of debt for 200 billion pieces of worthless paper, as these shares would be…IMO
No lender will accept 10p to the £1. They would go bankrupt themselves if offered those terms out. Hence why this situation is complicated beyond belief. Now other industries going to all suffer from high inflation. Lenders have way over lent and face the prospect of many businesses going bankrupt, which in turn the banks and lenders will go bust. IMO
I thought there would have been more RNS about buys and sells from institutions. I fee Jangho has topped up and others have topped up. As well as some selling off. And shorts closing. Next few days will tell. IMO