Member Info for JenniferE

Why on earth would the shares be suspended on issue if the prospectus! What a ridiculous attempt at deramping !

It's possible they are bond holders, don't forget bondholders are receiving shares for their bonds! I wouldn't have though anyone would be stupid enough to have an uncovered short position!

At todays prices PMO would need a capitalisation of 5.089bn to enter the FTSE 100, that equates to a post merger share price of 27.5p. I suspect by next March we will have seen an improvement in the oil price and such a share price is vey possible! They will most likely miss the March review due to the timing of the merger and enter the FTSE 100 at the June review.

I don't know what you are expecting! The prospectus should be issued next month and they are targeting completing the deal around March next year. Probably the most important news in the coming weeks will be the OPEC meeting at the end of the month!

I see this differently. Baiden will destroy the US shale industry and as a result the price of oil will rise! Shale oil production will fall much faster than the take up of electric cars. In ant case electric cars in the US are largely powered by fossil fuels!

According the the RNS PMO released debt is $2.7bn including $400m of letters of credit which I assume are guarantees for covering decommissioning cost but I could be wrong. The $400m letters of credit along with about $450m RCF are super senior debt which I suspect is what has caused the problem as holders of $1850m of senior debt could have been left with very little or nothing. PMO seems to have gone out of its way to keep the amount of super senior RCF debt secret, I has to search through past annual reports, make assumptions and project the numbers forward pro rata to get my $450m estimate. Not only have they hidden this number but the write up for the retail bonds is intentionally misleading! Why else would you write an note for retail bondholders stating the average cash payment to debt holders is 61p in the £ when you know perfectly well that $850m of super senior debt will be paid in full resulting in retail bondholder being offered about 41p in the £ cash!

Mrd5432, ARCM don't need to buy any share to close their shorts, their bonds are being converted to shares and there will easily be enough to close their shorts!

This is Chrysaor's latest accounts:
https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/BfGjMK2VsiYq17cOeZmp5Fy4o-v3k_9UwdVHZX7QqGY/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Credential=ASIAWRGBDBV3CDIQ7BVP%2F20201013%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20201013T102757Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEGUaCWV1LXdlc3QtMiJGMEQCIHQj91js2LnAZIOaabeVLBQzbojh1XJSKJndweK4ASVHAiB%2FXqlJWBtLWcOQKxbKeIBjVO%2BItw2wXmDEKEfjVObrfCq9Awie%2F%2F%2F%2F%2F%2F%2F%2F%2F%2F8BEAMaDDQ0OTIyOTAzMjgyMiIMDPzuVkkXGjEWg6MwKpEDt9YKDrvNICQSn2pR5GmYa64FzTbNlhUje7FuqRYQdmvBLEZzC2hHJSkWgBy9pby4kZsAeNGcsX2TNwPpMWgin2t18i6F1xJ%2BiC4diw1ebKOYLIzN3r3w6oxt%2BEMEk27NpwAHZzwo%2B%2F383I4q5ISLttsz2pQBas7mA60YGntYKo8w8%2B68N%2BMhG4B0vhOJ5k29gVJIqJTanumZ05r2roCVQGoQxjBLv7F9CGZ5%2BUBpn8Xqei1JNuGJ3ifVAiQRCpp0sO4IZBa7seD6IHmvwqOeQbR8hbVKXlqhToaahE2AfeBvJWPly2Bzy1J88F%2F%2BX06zE%2FEEfQHV%2BhKhoZSAeKrDTjxm7YdRziURIWXHUwi61Rkit35c4%2B9KDC1CrQcc4SQFicWIJnFVQ8HEFqsnqzfXPoWetgidPOiiDZSt0kghIu%2B%2FO0KI2f8ofRQQ2RgkPSoD5nR8YGUtVSSGwjZ6PWpFDcsXja0pk%2FJlHrtXSZS5l2XZuR2WxbjD3e4tdMjMgzZ4IZCD0DoxDfe8bXJMXTKPqXIwyOaU%2FAU67AFwBm3eI4pssateQElH52C44hvJua9UvFWnN0NluuwNudaFoOr3BicM1dYRN99%2F9929vdg8YE2dzTWM4TlUiwEAFINCQXy8y7D5Ry7n3d1hCbRySlShceCxlIa%2BC8gcqJvUFlZpq%2FW0HgZigBR2jEahdsHb%2Fbyr7MWSujTUPdRhrQxDr561wrqpOuiRSc9wLzgnoz%2FvHNlga2mEaWGtzN%2BRMooMSINMhargNgXEZLMzgR1vgPDGF1J0%2BcZKNH2yMUP86U37hJMVF4S7ycYlgApNGIlqKc5L8ZvCzPv9Cm2u4U6h6ZtiFeSWgdYetA%3D%3D&X-Amz-SignedHeaders=host&X-Amz-Signature=6cb6289490163c5ffe717cdc2b06a1c1c9768eb3e14c6d30c04d085dedc45121

There is no cash offer for PMO, in fact PMO are making an all share offer for Chrysaor, in such a situation the price is determined by the market. According to the RNS , Chrysaor shareholders will get 77% of the enlarged company, PMO bondholders 18% and PNO shareholders 5%. That is reasonably clear, I don't know what else you expect other than the detailed information which will be in the prospectus before the vote.

What misinformation? The suggested deal is on the table, they now need to produce the prospectus which is a legal document and will take a month or two to produce.

I don't think you can read anything into the trades of the stock exchange website. I've traded the bonds numerous times and not once has any of my trades been shown on that website. The current buy price is just under 69p which compares reasonably with the suggested offer of 43p cash and 2.3 shares which at 13.9p gives a value of 75p.

Sorry for my rather poor lazy wording but it doesn't alter the fact that administration by itself would not impact these tax losses.

I'd be interested to know what other options you believe management had as sadly I believe they were out of options and in the end did their best for shareholders.

Happyinvestor, the tax credits belong to Premier Oil ,as long as the company Premier Oil survives then the tax credits remain. Administration is a system to allow some resolution for creditors and permit the company to continue trading. You seem to be confusing Administration with liquidation, obviously if all the assets were sold off then the tax credits would be lost.

Devonplay, in this instance I don't think they need to reverse in another company in, just a simple debt for equity as their are only two classes of debt. As long as senior creditors convert enough debt to keep the super senior creditors happy they they can easily take control of the company. I think Debenhams was a lot more complex due to different classes of debt although I had nothing in that so didn't take much notice.

HappyInvestor, creditors wouldn't lose the tax losses with administration, they would simply convert debt to equity at a pittance like 1p a share and then bring the company back out of administration. They would then own the company with current shareholders diluted to oblivion and they they would do any deal they wanted!

Brokestocker, I see what you are getting at but It's all down to contracts. When you get a home mortgage it is for 25-30 years and that is the time you have to pay back your loan, as long as you keep up payments you will not be repossessed and there are no regular income tests you need to pass. If you have an interest only loan and fail to pay the capital an the end of the period you will be repossessed! In PMOs case they borrowed over $2.3bn with a repayment date of May 21. They can't pay and so are at risk of being repossessed! I'm sure many of the old institutional debtholders would have agreed to roll over for the cost of a decent 3 course lunch but ACRM weren't prepared to agree. The agreement here at least saves something for shareholders and to be honest shareholders are coming out well considering debtholders are taking a 30% haircut. With that sort of loss from debtholders it is usual for shareholders to end up with less than 1%.

What you are missing is that there was simply no way out for management, ARCM saw to that. There were demanding their money back and weren't prepared to roll over past May 21. As a result PMO would have had to repay $2.7bn in May next year. Ant this is ignoring the covenant breach which would make all $2.7bn repayable of demand.

If you were running the company how would you get out of this bind ? Without agreement from ARCM the largest debt holder there can be no solution.

What has happened to Solen P3? It was supposed to be producing 10k bopd with news out in September! Is it now fair to assume it's gone the same way as Solen P1 and P2?

Devonplay, you suggest the bondholders will be taking the cash element but this is only equivalent to 8.8p per share. Would it not be better for the bondholders to short the shares now at 14p and take the share option to close the shorts?

That was the value of Aker BP at the start of the year, I believe brent was around $60-65 at the time.