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@Manofnomeans,
Following on from compensation by the FSCS from its own compensation scheme and the scheme it is operating on behalf of the the Government, the FSCS has become the largest creditor of London Capital & Finance (the creditor of LOG).
Whilst this means the administrators have a small number of creditors to keep happy rather than thousands, it's unlikely to have much affect on their strategy to pursue recoveries wherever there is a good prospect of success.
The next big event is a court case at some time in 2023. In the meantime the administrators will keep the shares whilst there is good prospect of them increasing in value. As I have already mentioned, the administrators are now taking out a loan to cover costs, whereas previously they were selling shares for this.
@Manofnomeans,
I think there are some shortcomings in what you are suggesting about LOG administrators selling shares.
The 25% recoveries is an estimate that is not necessarily the same as their target.
IOG repaid £17.1M to LOG in October 2019. That already represents about 7% of the recoveries.
At a share price of £0.40, LOG's share holding and convertible loan notes (to be paid in cash if not converted by October 2024) are worth in the region of £80M.
There are tens of millions in (LOG and London Capital & Finance) administration costs to be paid in addition to the recoveries repaid to creditors.
When LOG administrators sell shares they tend to sell millions at a time, not thousands.
Until recently, the LOG administrators were selling shares to pay their costs, but the administrators (also London Capital & Finance administrators) now have the agreement of the FSCS (the largest creditor of London Capital & Finance) to take a loan facility.
I am quite sure it is not LOG administrators selling shares at this time.
@Peakview
I don't see the administrators selling the shares for some time yet.
@Peakview
Aside from the relatively small number of LC&F bondholders who received compensation from the FSCS, many of the remainder have likely accepted the 80% compensation capped at £68k from the Government. The FSCS is operating the Government compensation scheme, so the FSCS would now be the subrogated creditor for all bondholders who have accepted compensation.
Until recently, the administrators of LC&F (who are also the administrators for LOG) were selling shares to pay their costs, but the administrators now has the FSCS's agreement to take a loan facility. The next big event is acourt case at some time in 2023.
In addition to the 144.5m IOG shares, LOG has £11 400 000 loan notes convertible at £0.1900, repayable in cash if not converted by maturity in October 2024.
dellfrog,
From time to time the LOG administrators have sold IOG shares to raise money in order to cover their costs.
To my knowledge the administrators have not been selling, as you suggest, when the share price reaches a target price of £0.36 or otherwise.
LOG still has about 144.5m IOG shares.
Many of the "investors who lost a lot of money" would have accepted the Government compensation, so it is the FSCS, the subrogated creditor on behalf of the Government, that will receive any dividends from the LC&F administrators as a result of the LOG administrators selling the shares, and repaying (part of) the loan to LC&F.
torobravo,
There has been speculation, but the LOG and LC&F administrators have never specified a target price for selling the IOG shares. The only intention they have stated is to maximise the return for creditors.
The latest LOG Joint Administrators' Progress Report shows that they sold 1.35m shares between 7 and 12 January 2022, presumably to raise money to cover costs. Whilst it's quite a large amount of shares it's a very small fraction of LOG's holding, which is now around 144.5m.
Aim-Mafia,
You are choosing to interprete 'early weeks' to mean January. Just as the wording was vague in the previous update, i.e. achieving first gas in Q4 was described as challenging, the wording is deliberately vague yet again. In my opinion, they are deliberately toning down bad news, and it's likely that the slip will go beyond January. Time will tell who is right.
Moleinahole
Regarding LOG, in addition to its share holding, LOG has:
* £11,400,000 loan notes convertible at £0.19, repayable in cash if not converted; maturity date of October 2024.
* 20,000,000 warrants with an exercise price of £0.3218; maturity date of 31 August 2023.
As with previous warrant exercises, LOG would need to sell shares to raise capital for exercising warrants. I don't believe the administrators will be doing that in the near future.
edgar222, Amount owed to creditors appears to be around £156m (less if not all unsecured creditors' claims are ultimately admitted). Then there are administrators' costs and taxes to be added. Assuming a total of £200m, then with a share holding of 27.87%, conversion of £11.4m loan notes, and realisations already made of around £19.3m, estimated share price required to clear that is around 90p.
MonkeysClimbHigh, Amongst the reasons why a further extension will be granted is that the joint administrators have issued a claim against 15 defendants. From the latest administrators' report on 26 August 2021: "It is likely that, due to the complexity of the case and the number of defendants, a Court date for the hearing of the Main Proceedings will not be scheduled until 2023." See 2nd bullet point on page 2 of the latest report, https://find-and-update.company-information.service.gov.uk/company/08140312/filing-history/MzMxMTkwMDcwMWFkaXF6a2N4/document?format=pdf&download=0#page=12.
The fact that investors who have not been compensated by the FSCS will received some compensation from the Government will simply result in the Treasury being a subrogated creditor along with the FSCS, and does not change the administrators' strategy.
Note these comments from paragraph 3.1 of the latest report: "Readers should note that these matters (being primarily legal proceedings) will necessarily require a number of years, rather than months, to reach conclusion. However, on the basis of the Scheme, this will now be an issue for the FSCS to monitor with the administrators over the next few years."
MonkeysClimbHigh, Okay, so the London Capital & Finance administration period is currently extended to 29 January 2022, but the joint administrators will have no issue with obtaining a further extension.
What's the basis for "By the way, if they want to even attempt an extension, they need to apply no later than one month before it expires otherwise they have no chance. So I make that no later than the 1st December 2021."?
On 9 December 2020 London Oil & Gas administration period was extended to 16 December 2022.