Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Monday is key. I sold out as expect sp to drop more. Too much negativity.
Until a buyer of note steps forward. This looks like being a very toxic situation for next couple of months. If there is an upswing then will jump back on.
Just I do not hold much hope with Mooky at the wheel.
See where this goes. First lien lenders do not want to take on the company. One of them being landlords. So instead of getting rent, they are paying themselves. As well as paying the bank mortgage money for their properties.
Other lenders also have to pay for wages and upgrading cinema screens. The value of the business will be no where near 6 billion.
They will delay and delay and equity swap. They want this company sold in April. Hence their debt for equity swap does not come till May.
What about second lien lenders who need their billion paid off. Has this occurred yet by first lien lenders.
What is Mooky trying to do and has been trying to do. Save the company or keep himself in charge? His weekend will see a lot of behind the scenes action.
If you look at the long term commitment in the film industry in terms of spending. Having Cineworld go tits up is a disaster for the studios. This may see some of them file for chapter 11.
Hope we hear from a company no longer going ahead to second stage of bidding.
I feel only ROW offered. So lawyer could state no offers, as technically they were not offered. Mooky trying every trick in the book to keep control.
Lenders do not want shares, as they would be worthless. They want Mooky out. The studios want Cineworld in business and need to force the issue to get Mooky to sell up and walk away.
This might get a whole lot more toxic now. Which will both damage Cineworld and the film industry as a whole.
Feel Mooky only offered up ROW for sale. The judge needs to step in more as Mooky is doing everything in the book to cling onto power.
VUE do not want Eastern European cinemas. All the revenue is America and the U.K.
Hope we get leaks from disgruntled companies highlighting the games being played by Cineworld.
As for dilution. The lenders do not want this. Even if the London stock exchange allows anymore share in the company.
The shares would be worthless and if the company is valued at £2 billion. Then the first lien lenders will get all the shares and the second lien lenders would not even get any shares and lose all their money.
Can now see this dragging and hopefully seeing Mooky forces out of the company.
Court date Tuesday where the judge will inform lenders and Cineworld which proposal or proposals he has approved.
Shorts have two days to close before things get tricky for them. Retail investors who have taken a spread bet, as cannot do a conventional short also have to close.
Come Wednesday morning the landscape will look a whole lot different.
People enjoy your weekend. Stop speculating wildly on this company.
Things will be made a whole lot clearer after Tuesday’s court session.
People also seem to be ignoring the basis of proposals and what they are about. Relax and wait and see which company is the successful bidder or couple of companies that can bid again. Till then no point debating about thin air.
Do not know if a Qatari company has put forward a proposal. But as AMC is in bed with Saudi Arabia and knowing the antipathy Qatar has with Saudi Arabia. It is not out the realms of possibilities that Qatar would buy Cineworld to continue its actions against Saudi Arabia. Time will tell. Waiting on the judge to release further information tomorrow or early next week.
The conference has been moved. Not the proposal submission. This is probably due to that the conference may not need be needed if a successful proposal matches all needed criteria. Thus postponing the conference, to a later date makes sense. Hopefully tomorrow we get a full statement from the judge over how many proposals have been submitted. And if there is one proposal head and shoulders above the rest. Then the judge will probably push on with this company.
I do not expect CP, AMC or VUE to be anywhere near the best proposals submitted.
This is a full takeover. Regal is a company and cannot be viewed as an asset. Mooky was being disingenuous in his press release. And then met a quick rebuke by the judge. So ignore stuff in the press. As nothing has followed anything that has been printed.
Wait till after this Thursday when deadline passes. Once you see the calibre of companies involved, you will get a much clearer picture about whom is likely to buy Cineworld.
I think they will be share movement this week. But best wait till after Thursday. Lots of companies bidding. The process will only allow the two best, possibly three if all close, through. This will be decided by the judge. His main concern is that of the company. The lenders have no grounds for recourse, if he decides the best offer will see their debt paid back over five years.
All I would say is hold onto your shares till next week at least. Am sure the court will release the names of the companies that have Submitted a proposal. The size of these companies will see the market react accordingly.
How much is bitcoin worth. If multiple people want to buy it, then a lot.
Same with Cineworld.
Let’s flip the script. Say Cineworld get no buyers and go into chapter 7 bankruptcy.
Lenders lose almost everything.
Cineworld close and strip out all the projectors, sound systems and food machines as well as seats and carpets. Leaving the cinemas back to their bare bones.
Studios losing around 30% world wide revenues will be forced to push 2023 slate of releases to 2024.
This will then impact on their ability to attract investors to shoot new projects. As the main lenders will have too much money tied up in films waiting to be released.
The other cinema chains will struggle to keep going from a lack of film releases.
Landlords for Cineworld will suffer from no rent and other businesses around the cinema struggling with reduced footfall.
If a company does in the future decide to take over the cinemas. They will have to refurbish the entire lot from top to bottom.
AMC spent 2 billion during lockdown updating most of its cinemas. Doing this from scratch would come in around the 4 billion dollar mark.
All in all so many companies need Cineworld to keep going. It is so heavily tied in with numerous businesses.
Whether they like it or not. The cost of buying Cineworld, even at an inflated price. Is far less than the impact of it closing for good and going out of business.
Wait till news of all the proposals have been submitted and by whom. Then you will see how much interest and competition there is.
Till then take this week off and relax.
The matrix for a companies worth goes out the window for this process. As companies only get one shot to put forward their best proposal and are directly competing with other companies and not knowing how much they will bid. Will push some companies to bid higher than the value of the company may be. Knowing in the future they can add value to the company and with gained synergies and other income revenue streams not yet exploited by cinema chains. So expect one or more companies to bid higher than the market expectations
Once all proposals are in on Thursday. Things should be a lot clearer. The following week, the judge should declare which parties remain involved in the buying process and which have been discarded. I expect more movement this week on the share. Also expect more posts on here urging people to sell. As shorts need to close next week or risk waking up to a massive loss, if a companies proposal is way above all others, for all parties concerned, including share holders. Of which the Greidinger family are one.
Wait till after Thursday. Then the court will hopefully release those who have submitted proposals and when they will reduce this number down to two or three and which companies proposals remain to fight it out.
Comcast are more than a dark horse. They are due to receive nine billion from Disney for their 33% share of Hulu. So can use this money to buy Cineworld.
What I would love to know, is after Thursday deadline has passed, will the court release a list of those companies who have submitted a proposal. And give a deadline for when the court will announce those proposals that are the best and can continue to negotiate to buy the company.
Disney has a massive debt pile of 40 billion and are haemorrhaging money. Hence the need to cut workforce and try and make savings. This sale has come to soon for them. They will have to watch as one of their competitors snaps up Cineworld and then deal with the consequences this has to impact on their business.
I personally feel Disney will not win, they might submit a proposal. But others out there with deeper pockets and greater need.
I am surprised no movement has taken place by the shorts to close out some of their positions. The risk vs reward factor is heavily weighted in the risk. After Thursday I expect things to start speeding up in the process and the new owner to be confirmed within weeks.
Every chapter 11 is different and has to be taken in isolation. What makes this unique is that, what ever judgement, still needs to go back to the U.K. for shareholders to vote. American courts do not have jurisdiction over the U.K. and the judge knows this. Hence why a complete buyout will be the only solution that will work.
Lots of potential buyers . Will not find out till after next Thursday. Am sure there will be disagreements between lenders and board, unless a company comes in with a strong offer and caters to both’s needs.
I have laughed at the last couple of articles by MF. Bearing no real action to reality. Someone is paying them to print these. Not one mention of the court process or the deadline of the 16th to buy the company.