George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
RNS Number : 3390U Clean Air Power Limited 28 July 2015 "KPMG has run an exhaustive process and the Board......However, in the event of an offer, and partly due to the short term financial constraints that the Group is operating under, the Board can provide no assurance that significant value will be returned to shareholders." When accountants/administrators such as KPMG warn on no return for shareholders it always means there will be no return for shareholders. The plug will simply be pulled on retail shareholders here......and soon.
Gster - "Creditors 3% ( I assume 3 p in the pound but don't take that as read)" Doesn't sound right to me. In no way would creditors settle for a figure as low as that. There is no mention of the Brazilian fraud money or the other subsidiaries yet.
My interpretation of the RNS is that this a voluntary administration not an administration imposed on the company by the High Court as part of a winding up order. Here the directors have voluntarily called in administrators to try best restructure the PLC. The administrators would certainly take into account matters such as the outstanding £3m owed from the Brazilian joint venture. I have heard nothing more of the sale of the German subsidiary, how much it has been sold for and to whom so it might still be part of Hightex Group Plc. I'm afraid it is still a question of wait and see.
I suspect it was the post regarding director dealings around SolarNext AG.
InTheMix - "I suppose everyone knew the risks, just hope we all get lucky on the next" Nobody knew the risks. In fact it was quite the reverse. Shareholders were led to believe that the survival of the German subsidiary would lead to the survival of the PLC. Who in their right mind would have thought the inverse to be true. The survival of the German subsidiary would lead to the destruction of the PLC. The German subsidiary coming out of 'Eigenverwaltung' has led to the PLC going into 'Eigenverwaltung' and beyond. Keep your ears to the ground. Reading the RNS again it seems to me they need the PLC going into insolvency before they can safely move forward with the sale of Hightex Gmbh without any legal objections.
Gster I have no doubt what you and CEO2 have touched upon is only the tip of the iceberg. However the primary concern for retail shareholders is not really the shenanigans of the past but what happens as of now to their investment. Until further news is released its impossible to plan any rear guard action. What is of paramount importance is that ears are kept to the ground and research done so that all are aware of any impending court cases or insolvency hearings.
SoulPowerClub - "So before I come clean to my wife, do we think there is a glimmer of hope that we'll be getting anything back at all? Or is our money long gone" The PLC is not in insolvency yet. The insolvency is just a proposal at the moment. Shareholders need to digest the next RNS to see what went on and obtain all the facts. Whatever is in the next RNS nothing is irreversible or can't be challenged. Hightex PLC was not a company capitalised at millions before it was suspended. It was only capitalised at £500k. This is peanuts in terms of market caps. If the buyer of the German subsidiary is the Russian billionaire then she can well afford to throw an additional £500K at the beleaguered shareholders. Maybe she has put additional money on the table for the shareholders but the directors have embargoed it for unpaid fees, severance pay, pension pot top ups and whatever other excuses they can find. The tax losses alone for the PLC runs into millions. As Gster stated they can well afford to pay 0.15p per share. But at the moment its just a question of wait and see because you don't have any details. However shareholders must keep their ears to the ground. Do a bit of research for court dates and insolvency hearings. No need for expensive lawyers you don't need them in this day and age of the internet. You can represent yourselves collectively. But at the moment there is nothing to go on because the directors have only recommended insolvency that's all. "The directors have concluded that an insolvency procedure should be commenced immediately and details will be confirmed as soon as practicable." Don't let that scary talk put you off defending your rights. Did you notice how the headline was all in BLOCK CAPITALS where as all previous RNS headlines have been more civilised.
Latino - "Guys, no one in their right minds could have pre-empted this....its one you just have to learn from...and move on." The trouble is there is nothing to learn. How can you avoid this happening to you again. Normally before suspension and insolvency the directors would advise shareholders in an RNS that if talks fail or whatever "there will be little or no value left in the shares". This has not happened here. The directors have always indicated the problems in Brazil affected only one subsidiary. The German subsidiary is such a percentage of the overall PLC that this is effectively a takeover for the whole company for which they are attempting disenfranchise retail shareholders financially and by not allowing them to vote.
I suspect the Austrian company is Inteco Beteiligungs GmbH which is owned by Yelena Baturina the Russian billionaires. The article below is an earlier purchase of hers. http://www.azocleantech.com/news.aspx?newsID=20382 Inteco Beteiligungs GmbH, an Austrian company owned by Russian businesswoman Yelena Baturina, has signed an agreement with the German company RE-Pro (RE-Pro Renewable Energy Provider KGaA) for the development of a project aimed to generate, use and market renewable energy in Europe.
Yes. Stick together for the German subsidiary is so large this is technically a takeover of the company.
CEO2 I agree so many issues here. Maybe the 2x3% share holders had to be bought out because they had sufficient holdings to call an EGM and block what the directors had planned. Who is the Austrian company . The directors never revealed they were in takeover talks which is against stock market rules.. I just wish the little people on here would shut up.The last thing the directors would want to see is corporation and coordination between retail share holders.
If the offer is accepted then the main subsidiary is clear of its debts and sold. This had nothing whatsoever to do with PLC and the other subsidiaries. Indeed had the offer not been made then Chapter 11 would have been endorsed protecting the company from its creditors and the loan facilities would have been exercised or even an equity issue. There is no connection between the offer for the German subsidiary and the closing down of the PLC. What are they implying is if the offer hadn't been made the PLC would have shut down anyway?. Not true and they never gave any indication of this. The offer is a late twist. Substantial amounts of money has been put on the table by a Russian billionaire and the directors have decided shareholders in the PLC will see none of it.
Just saw the RNS. Truly sorry to read what happened. Nobody here is to blame. The company gave no indication whatsoever that the PLC was in danger of going into insolvency. Indeed it took great pains to state that none of the other subsidiaries were effected. Why would the PLC shut down anyway. What about all the other subsidiaries. I simply think an offer has been made and the directors have simply decided not to pass on any money to the shareholders.. With no effective Shareholder Action Group they can do whatever they like. The Russian billionaire story is still probably true but the purchase is through an Austrian company. Please stop blaming one another. In this case there was no warning whatsoever of potential insolvency indeed quite the reverse.
A Monday RNS would be preferable. If there is a takeover it would be better for shareholders to have the story circulate in the press and BBs over the weekend so everybody is aware Monday am.
Assuming the buying blog is true then its not what the company is worth but what its worth to the buyer. Having full control of one of the leading construction companies responsible for building stadiums in preparation for the World Cup 2018 in Russia by the leading Russian construction company maybe worth a lot to them.
Just had a look at the article again. It is not official news from PKL it is a blog.
Yes OK. Just a question of wait and see and pray that the shareholders are not shafted as is normally the case in these situations.
jamzyee - "100% genuine, its from the company carrying out the procedure for Hightex" And which company is this?
.....and do not rule out the fact the buyout article could be completely made up. Shareholders can only wait and hope for the best.
http://en.wikipedia.org/wiki/Inteco "Inteco (Интеко in Russian, "Inteko") is a Russian construction company, 99% of which is owned by Yelena Baturina, Russia's richest woman and wife of former Moscow city mayor, Yuriy Luzhkov." Shareholders have to wait and see what the offer is. There are creditors so do not necessarily expect a massive premium if anything at all.