The next focusIR Investor Webinar takes place tomorrow with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
The BOD are doing a deal for a takeover or significant investment. Their shares will recover when we have been bullied into taking 30-50 for ours. This is why they have pushed down their own share price.
Unsecured bond holders are losing 70-90%.
The last financial statement mentions "senior secured notes," which are a type of debt security issued by a company. While they are similar to bonds in that they represent a form of borrowing, they may have slightly different characteristics and terms compared to traditional bonds. In this case, the Group's facilities include senior secured notes, which are a type of debt instrument. They are secured on assets. They are due in 2026.
This statement indicates that after conducting a capital raise and refinancing in 2021, the Group extended its banking facilities in a US$162 million revolving credit facility, and two bilateral loan facilities totaling US$90 million, all of which are set to mature in October 2024. This information outlines the Group's financial structure and obligations in terms of debt and credit facilities.
They need $250 million by October this is the issue. Bond holders are screwed already. They are taking a 70% haircut minimum as they have no votes.
Banks will wind up the company rather than take shares if they think they will get 100%.
The Board suppressed their own share price as they need shareholders to vote for a lowball takeover of 40-50. If that.
They have no chance of raising all that cash by October and the directors and other investors are getting oaid off to shaft unsecured bond holders and PIs.
That is the actual change. Not D4E.
Nothing new was said. Nothing has changed. The only real change here is that the trolls have come back to gloat about the fact nothing has changed. No one knows anything. Anyone who says different is just speculating and talking twaddle. Like I say, nothing has changed. Same old hogwash from the same old hogs. Hopefully they will go away soon.
Apollo were after the Wood Group so they see value in the sector for the long term. Petrofac is undervalued but only if the management depart. They have failed to sort things out and ate vulnerable to a takeover. 50 - 60 looks pretty attractive at the moment. So if they can persuade the BOD it would be to their advantage it could happen. The lenders don’t want promised land offers and a full order book they want liquidity. But the BOD have failed to secure it and look pretty insecure from where I am sitting. I mean would you want the same management team? They are a billion in the hole!
The BOD did not have to issue that RNS as the only thing happening was a slight increase in the SP. They knew that that RNS would wipe out the rise even though it said nothing new. 31,000,000 traded and holding at 25.
Why would they want to lower the market cap is the real question. Why? To make it more attractive for a takeover? To facilitate acquisition of shares at a low price to help short traders?
Management know that receivership is likely as they cannot pay the wages, service the debt or capitalise the backlog. They had no choice, they had to release the RNS and downplay the crisis. They are trading while insolvent.
What has changed is that the pump and dumpers have made a fortune.
It is possible that an asset sale could limit the dilution significantly. The market is still valuing the shares at 25. The issue is liquidity and the cost of that. An order backlog is just the promised land and not worth a carrot. My reading of the RNS is that they have achieved nothing and are treading water at best. In days past this business would have been taken over and the entire management kicked out. Now? Sadly, it could just go bust.
Most PIs are now averaging well over 25 so will sell at a loss. So effectively the pump and dump has locked a lot more investors in who have no option but to hang on and hope. Our only real hope now is a buy out at 30 - 50.
The shares will tank to 5-10. If we’re lucky. Now we know why they were pumping and dumping. Serious fraud by insider traders ripping off private investors who bought in this week. What will happen to these crooks? Nothing.
A fair valuation of the company would be 750 million to a billion. Should get up to 300 in 18 months or so.
A debt for equity solution would have to be notified by RNS immediately.
Private loans, private credit, legacy payments, sales not necessarily and not necessarily immediately. No news is good news in that case.
They can include technically non inside information at the same time as the financials to soften the blow and shaft the short positions and boost the share price. I am gambling on this occurring. Even a sniff of Apollo involvement will crush the short positions.
2,500,000 traded by 10:00am 31 breached. Positive RNS = 100. Still think Apollo could either make an offer or make significant buys to shaft the short positions. 150 then.
There is no mileage in a d4e more likely they will ise private credit/loans from an outfit like Apollo. Possibly as a precursor to a sale.
They got the price up by nearly 15% by pumping automatic buys in waves of varying values up to £10k and now they are dumping and the price is falling. A holding company with many subs will buy as a concert party and then dump the lowest priced shares they have. Pump and dump.
Another pump and dump.
I think those two contracts mentioned in Meed will be confirmed in an RNS that sets out the balance sheet solution along with year end results. There are quite a few automated buys pushing up the price today. There will be a short squeeze when the RNS drops. A 100 spike is possible and I hope I have the bottle to wait for that before I get the f%#k out of Dodge!
750,000 sell has not impacted that much either.
The market seems to value Petrofac at around 24/25 with no news, crap cashflow and loss making. Short positions have reduced slightly. The gamble is that the news resolves the cashflow and profitability issues. Then we see 100. Until then 24/25. Like waiting for a bus at midnight.
The idea that bankers are helping short traders in the pub on a Friday night is so unintelligent. Every banker I have known would rather lose a little finger than blab. Like lawyers who blab bankers are finished if they do that. Petrofac is small fry and no banker is helping anyone at all. Only a few tightlipped people know anything at all. If those with short positions knew anything at all they would either massively increase their short position or bail out. What a really stupid suggestion to make. Bankers live or die by keeping their mouths shut. Moron.