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There is the explanation for weakness. Parvus selling down a portion of their stake and maybe still selling.
Not market makers manipulating or anything else, but just a basic large seller.
Given they don't have bank lenders it is unlikely they have to negotiate anything. They have bonds outstanding with certain maintenance covenants, mainly DSCR (Debt Service Cover Ratios) of 1.4x. They currently are comfortably above that at 1.7x, possibly dropping to 1.6x
They have done a refinancing in early February so unless cash generation drops substantially, it is unlikely to breach these covenants.
So RAC managed to raise their EBITDA by £11m to £226m, and with better management of Working Capital have enabled to pay a dividend of £50m+ to its Private Equity shareholders. Leverage came down from 6.2x to 5.9x.
This is significantly lower than AA, but I am bouyed by the deleveraging and overall positive tones coming from RAC. RAC conference call not until mid MArch.
RAC published their results this morning. Strong results, more to follow.
Good post, I would just add that the A3 notes are already refinanced with a Forward starting Term Loan Facility already agreed to take out these bonds.
Secondly, I think you will find (maybe hopefully, wishful thinking) that the Company purchases more of the B2 notes since last reported. Only quirk is the B2 notes they have purchased, have not been cancelled and still sit on the balance sheet. So £23m of bonds (of the £570m) have been purchased and sit outside the securitisation vehicle.
I asked about the convertible.
Anyone seen a price on the convertible bonds. And if they no if they placed it with one big anchor holder or across the market.
16 September 2019 - As part of the process to finalise the full commercial terms between Thomas Cook Group's creditors and stakeholders, the Scheme Meetings and the Schemes Sanction Hearing relating to Thomas Cook Group's proposed recapitalisation will take place on the 27 and 30 September respectively.
The Company continues to target implementation of the recapitalisation in early October.
HK85.
Would you want to invest in a company that reported H1 revenue down 6.5% with a further decline of £183m for the 4 months to July 31st. I accept there can be manipulation at the EBITDA level but revenue is simple. Also simple is cash.
Cash for the H1 to Mar 19 was £361m worse off than the prior year. And this figure has deteriorated to £815m as of end of July.
With this figures would you invest at all in a company that is struggling so much. All agree that the current publicity is a negative and the economy/brexit is a drag.
So how would it trade in the future? My best guess would be poorly. You have significant number of bondholders who will hold equity and seek an exit (some of the funds are not allowed to buy more equity). This will be a negative.
Second negative is the large shareholder in Fosun, complicating matters. This prevents any external competitors thinking about buying in and prevents management (new or existing) in pursuing a merger/take over of other types of business.
Thirdly, I think banking relationships will be ruined and having to take significant losses on their current position, banks will be reluctant lenders in the future.
The only positive is possibly a change in management and try to focus on growth areas within the tourism sector. But this does not outweigh the negatives.
So for these reasons I think it will trade badly post the restructuring
NSD: (BMET) Notification on Corporate Action "Bond Holder Meeting" - THOMAS COOK GROUP PLC 6.25 15/06/22 (bonds ISIN
Cant see the full story
"Thomas Cook Rescue Under Challenge From Hedge-Funds Plan"
Don't have the story - but this story is floating around on Bloomberg. Would appreciate if someone can post the full story
illbetabuck
The loan from Fosun is interesting but I think (IMHO) that it is due to structure for several parts -
a) Fosun won't need to consolidate the Company on their balance sheet
b) probably higher consideration, don't fall foul of non EU holder for the airline segment.
c) if the debt is just been subordinated in the first circumstances, they won't want to rank behind all of that debt.
illbetavuck,
I have read the whole document. I posted it so others can read. I think if we (who generally agree the direction in this share) post snippets, people will accuse us of selective quotes. That is why I haven't quoted much from it.
This is the reason I come to this site - to get information. I asked on Tuesday if anyone had seen the documents (at that stage I hadn't), but no one replied even asking what type of documents. That frightens me that people would continue to trade without finding all information,
But interesting if you take the stages of the document, the shares will not be diluted straight away - (they need to ensure that they can maintain 50% +1 European shareholding to maintain their aircraft license.
Found the documents - on the website
https://www.thomascookgroup.com/investors/insight_external_assest/ThomasCook-ExplanatoryStatement-August2019.pdf
Extracts -
In 2019, like-for-like revenue for the year to July 2019 (as at 23 August 2019) was £183m behind the prior year, with continued growth in Turkey of £122m (+18%) and North Africa £71m (+21%), offset by deteriorating performance in other markets including Spain -£188m (-9%). Underlying EBIT (to July 2019, as at 23 August 2019) is £206m behind last year due to margin pressures in the Group Tour Operator and the full-year effect of volume-related increases in Group Airline overheads.
8.11 Over the same period, the Group’s liquidity position has continued to worsen resulting in a deterioration of approximately £530,000,000 in the Group’s liquidity as at 31 July 2019 (as reviewed on 23 August 2019) compared to the position at 31 July 2018. As a result of lower profitability and a negative working capital position, the Group’s net debt position as at 31 July 2019 was approximately £1.43 billion, a like- for-like increase of £815 million from 31 July 2018.
Rest is too big to post - but instead of sniping at each other, I would suggest reading the documents would help
Has anyone got a link to the reported file documents for schemes to proceed on the 18h September? Rumours seeking to reduce voting thresholds on the bonds.
Problem is we have stopped commenting on this page as there is very little real news out on TCG. It was apparent that nobody dialled into or logged on to the free conference call of tcg's main competitor.
I will return when there is real news, which in my opinion will be negative, but I really don't want to spend time reading and getting insults from people who "play the man not the ball".
I follow links in my professional career
If you go on lmey website you will see press releases pointing that the latest additions grow the portfolio to 9 hotels. Tcg aim is for the fund to comprise 10-15 hotels by 2021.
There is other press reports pointing to banking facilities totalling 91m so TCG own 50% of the equity, valued at £60m in September 18, likely to have increased but limited.
The other hotels tcg mention are not owned by them. If you listen to replay of tui call yesterday you will hear the same asset light method.
Sorry, no conspiracy no hidden assets.
It is. I'm still on the tui call but no one on this chat had mentioned it (apologies if someone has, I've missed it due to the crap from everyone posting.
Tui is the only fresh news I see today. That should be the topic of majority of conversation.
Anyone listening to the call. Main competitor and you are all typing/sniping at each other. Please stop.
If listening, you would hear about hotel strategy (asset light), losses in German airline market but consolidation likely.
Educate yourself by listening to peer companies.
Stop typing.