Member Info for LookBothWays

Pretty obvious what Lonny is doing he is trying to get his money back from PRD. They are not talking to him about it so he is putting their feet to the fire. Very clear from his X posts. I look forward to more info on Friday but I feel he may get a resolution by then.

Suppress information that is unpalatable. Not convinced that is the way forward. Find out what Lonny has to say and take a view from there is what I would like to happen.

The contract is delayed as it takes a lot of work to sort a new one out. Obviously having spent the money and time getting PFC upto the spec the client is giving the chance for a deal to be made by the bondholders to save the company, however this is a stalemate as they are waiting for the banks to issue performance guarantees. Below is an extract from a Bloomberg article which explains the situation regards all contracts, not just the Algerian one. I suggest those that still hold equity read the last bit very carefully big clue what's going to happen to the share there for those that cant read RNSs. This article also disproves the BS being spouted by the ramper ladybug2024 previously re the debtholders waiting to see if the company can recovery any funds from ongoing contracts.

'At the moment the talks are locked in a Catch-22 situation because bondholders want financial institutions to give performance guarantees — insurance against project failure — before they provide rescue financing, yet banks and other providers only want to do so if the capital structure of the company is made more sustainable, said people familiar with the matter.

Petrofac is hoping to resolve the deadlock as soon as possible, said the people, who spoke to Bloomberg on the condition of anonymity. A spokesperson for the company didn’t immediately respond to requests for comment.

While bondholders have offered up to $200 million of new financing and another $100 million of credit support, which would enable it to convert a significant proportion of existing debt to equity, the deal is contingent on securing these performance guarantees. That hasn’t happened yet, the people said.

https://www.bloomberg.com/news/articles/2024-07-11/petrofac-s-restructuring-talks-in-limbo-as-debt-deadline-nears?srnd=markets-vp

Evanscent

The fact you have to resort to childish names rather than address the points shows you have no idea otherwise you would post reasoned replies. Tells me all I need know.

I will add you to the filter list as you are wasting my time reading your pointless drivel.

Name calling just confirms my views about your abilities to understand investing.

Fair point Ladybug but who pays the performance guarantees plus the continuing losses, no one will loan them money they might not get it back. Also will clients stay with a company that is living month to month and where do the new clients come from to continue filling the pipeline? Nobody is going to give a contract to a company that maybe gone the following month. I dont see how it can run on constant threat of being liquidated by the bondholders. How does that work normally?

Keep the cotton wool firmly in your ears lol

Evanscense

It was you who started questioning my motives I now ask you yours but you are reticent to give me your story. Mentioning functional safety does not tell me much about your knowledge of EPCs. Seems I know a sight more than you off how this industry works. These is much more I could say but would not say it to anyone I don't know.

As for making a loss many years ago you are wrong I am afraid and why that means I would try and talk the SP down now is a pathetic attempt to disparage my 100% honest industry views. I have lost on many other shares but don't talk them down why bother at PFC if I had made a loss, I didn't by the way I did a couple of nice trades as it happens.

Keep the cotton wool in your ears you will learn at least from this share to research a bit more .

Evanescent

My views are based on 30 + years working for EPCs seen it all before. I am not invested in PFC anymore I was a few years ago. I am not short either. I like to give advice based on my speciality which is oil and gas as I hate people ramping punters out of cash having been robbed in my early days investing by rampers and derampers making up stories

I wish others would do the same and try and wipe out the liars that populate chat boards

Where does your specialist knowledge of EOCs come from?

Well I agree that all they have is their pipeline but you need to consider how they got it.

In the past an employee of the company used bribes to win contracts so now that does not happen they maybe having to be more competitive with thier bids? Add in they were desperate for work after being fined for not having procedures in place to spot this rogue employee handing out bribes then you have a situation where they would be tempted to under bid to win contracts. This is a normal occurrence with EPCs when they need work and they try to make the money back with change orders, not always successfully if the client engineers are in the ball. So thier pipeline I suggest is suspect in what to profits it will make and therefore it's value to anyone.

As for thier engineering skills well they have had a series of loss making contracts so I would not say they are highly sought after by another EPC.

It should also be noted usually around 70% of the engineers at an EPC are contract so PFC cannot claim them as employees so they don't really have much apart from a few offices as those contractors move about a lot.

I am not seeing the value here for another company to be stupid enough to buy it before the bond holders are bailed in let alone a biding war to start

So that's the crown jewel is it? They have been trying to off load non core for a while and there has been no bidder for PM304 clearly.

Try again.

Whoops forgot to address my last post, it was to Plunger2

Why is PFC so attractive?What has a loss making EPC with a questionable pipeline of bids got that any company, never mind more than one company, will bid for it before being able to buy it for a fraction of the current debt pile after a debt for equity swap?

Tell me the jewel in the crown.

Fair point Ivorgriffiths where there is a pulse the creditors are best to wait and see if it can recover. I personally think it highly unlikely but for the creditors its worth a bet rather than landing up with equity in a bombed out EPC.

Lol there is no one queueing up to buy PFC its a loss making EPC with a probably loss making pipeline bid for when they were desperate for contracts so likely to have been underbid to win them. Add in the huge amount of debt which is far and away higher than any possible for the value of the company and I think you are highly optimistic there is a bidder willing to pay off the debt and pay for the company. A few more weeks and the price will be for the company only if a bidder can be found. Wood have only one bidder and they are profitable and have a strong pipeline.

The only real asset the company has is its pipeline of contracts. If the bond holders pull the plug some of the clients may decide to leave so I would assume the clients are needing to be kept sweet and performance guarantees found so that the handover of the company to the bondholders does not precipitate a mass departure and leave the company worthless to a future buyer, though I do think some clients will go anyway. Time is being given as it makes sense for the bondholders not the shareholders.

I am confused by some who say there maybe a bidder why would a bidder for this pile of poo not wait till the debts are wiped and buy the company from the bondholders. Why bid now and take on that debt load? What am I missing?

Try reading more than what the BBC posts as news. A little research will show this was agreed 2 years ago I will leave you to find out the rest.

There wasnt any more detail on Ireland.

yeah skip the important bit and skip straight to being anal

jeeze sad acts here can't be ****d posting any more info on the after presentation chat.

So the main change from the presentation posted this morning is Paul is half considering selling off to private equity post sandjet testing. Getting sick of the company being undervalued on AIM he rightly says