Member Info for itisagame

It’s going to be tight no doubt, lots of the remaining net asset value will be tied up in collateral which will be secured against the debt, and will be released over time to pay down said debts.

the plan was to use 50m of the asset sale proceeds as working capital, this is in addition to the net available cash proceeds of $65-110m.

Again at 5-7% interest plus libour - 10-12% debt, the company will be better off paying down as much debt as possible, or atleast hedge these costs by depositing the cash in short term government bills at 5+% which would give them access to the capital if required leaving the 6% interest difference as a fee for this ability, which is cheap compared to tapping the market again at later date.

Just a matter of balancing the books as well as possible, and potentially selling the remaining book if an opportunistic sale comes which would leave the deleveraged company running off its fee based model, and that’s where the actual time and work will be needed, they will have to earn their living, not rely on deposits.

And good luck as a private company.

Pretty amazing movement, £1.30 to 68p lows and back to £1 nearly

That’s the important bit “Its virtually insolvent” and it’s priced as this currently.

aslong as is still solvent then there is equity for shareholders, if they keep the company going I do expect a restructuring and open offer to fund going forward securely and let’s face it 5-6% + libor is not cost effective debt to have on any book, when you can raise equity and return that interest to shareholders instead.

The defence will be something like :

“we publish an RNS with the Nav of our assets daily which is currently 49p, we do not control market pricing, market pricing is a complicated matter and the market may at times over or under value a company based on market speculation at the time”

I tried outlaying a scenario on Twitter, with a picture of prior numbers the company gave, under company # last night, if you see it you may kinda get what I’m thinking.

$105m doesn’t just vanish, $15m more on top of the $15 allocated originally for closing costs maybe, but of extra interest maybe, but not $105m.

Unfortunately, oh yes it is,

"JEMA has been named as a defendant to civil proceedings being brought by VTB in the Russian courts which were commenced on 17 April. The claim has been brought against certain J.P. Morgan entities and relates to $439m held in a correspondent banking account with JPMCB (NY Branch) which has been blocked due to sanctions. We are not aware of any nexus between JEMA and amounts owing to VTB. "

i like how the company puts "The funds in the Company's 'S' Account have no value in the Company's accounts because the sum of £19.3m in the 'S' Account " when the value of the actual stock held in Russia IS in excess of $200m-$250m at market prices.

Pure speculation and Impossible to tell without the current numbers, but I’ve been Looking again and again at old estimates given and numbers in rns since, I’m thinking they might end up something like this:

with $150m debt ( RQ pay $50m more off from original $200m quoted estimates)

rq left with $50m cash for working capital

and around $200m nav left,

Maybe the wiggle room lenders have given is another $50m.

This way the company has around that 150% assets to debt. Once adding on the other sales.

If numbers are worse then it’s a sale of assets or recapitalisation to fund an ongoing business, maybe by open offer and that’s why the large existing holder have not sold.

I just want to see the real numbers going forward so everyone knows where they actually stand.

11m volume churned

2.5-2.75, maybe that dips cleared sellers out for a move back up, fingers crossed.

$170m-210m Became $65m-110m, I think more debt will be paid up and more collateral put down, they don’t spend $100m on extra administrative costs.

Even their carried losses are worth more than mcap to anyone that can utilise them.

Well, I didn’t expect that.

Because no one really knows the actual financial position of the company until all sales are completed, and much of the residual value left will be held as security / collateral for up to 5 years.

And we still don’t know what the company will actually do once the currently announced sales finalise,

will the sell off the remaining reserves (if so at a profit or loss?)

Or Will they choose to run the business with the remaining reserves under management and if so what would the numbers of that company look like?

TLDR no one knows where we stand till it’s done.

This would probably be why they have sold the JV too, they would have been encouraged by debtholders to make the numbers work for everyone.

thats an extra $30m cash flow in too dont forget

Im wonder if a chunk of the net sale difference is being put down as extra RQ Legacy collateral, which originally they had estimated at $40-80m.on $170m-$210m

now its $65m-110m, so $5m atleast may be extra collateral.

RQ Legacy collateral was the only amount that was a range, not a single amount.

see how the market takes it in morning.

It sounds like it all chugging along, finger in air calc was 30p-40p nav, plus whatever differences the $30m obra sale and any further sales make

RNS update, all coming together

Updated the numbers within the wiggle room window

"Net Cash Proceeds on closing are now expected to be between approximately $65 million and $110 million "

They had £220m wiggle room between current mcap and the original estiamtes of NAV post sale

And that’s

“Adjusted for closing of the Sale and subsequent de-leveraging of R&Q assuming Available Net Cash Proceeds of $170 million (at the lower end of the expected range)”

Not much has changed since the deal announced in October, interest rates have only moved a quarter %.

In the Presentation, R&Q provides an associated plan for the R&Q Legacy business, although it should be stressed that the ability of R&Q Legacy to achieve such objectives depends on many factors, including not least a successful closing of the Sale and the paydown of R&Q debt. This plan includes that:

The refocused business and strategy is expected to deliver operating profitability by full year 2025

Fee income is targeted to be doubled in 2025 compared to H1 2023 annualised

Expenses are anticipated to be reduced by 15% to 20% in 2025 relative to an adjusted annualised H1 2023 expense base that includes certain assumptions around Legacy’s standalone cost structure

As R&Q returns to profitability, it will review its dividend policy, subject to constraints due to relationships with lenders, regulators and preferred shareholders

The Presentation also outlines R&Q’s expectation of $100m+ of cumulative surplus capital to be generated over the next ~5 years as claims payments are made, releasing capital held against reserves. This is in addition to the estimated $40m - $80m of additional collateral R&Q will be required to hold against existing legacy exposure retained by Accredited, which R&Q expects to be released and available over the next 5+ years as the underlying exposures are reduced and eliminated.