Member Info for maxdba

I would imagine another extension will be announced, they will say something like 60% (my guess) of bond holders are onboard and the D4E solution is nearing.

The show will roll on !

Can anyone name a similar situation, huge debt, large orders on the books and running out of cash, where a white knight has emerged at the last minute to save the day ?

Why would anyone need to pay a premium to take over PFC ?

If this were a SME company I would be thinking that they were trying to trade their way out of trouble whilst stringing all their creditors along with promises of jam tomorrow.

I guess you can do it with an SME where a juicy contract might save you, but with a company that needs $5B a year revenues to breathe, pull the other one !!

One of the problems that PFC will face is that its entire supply chain will re-evaluate their payment terms and try to drag payments forward, or where new work is being placed negotiate more onerous terms (for PFC).

This will go right down to, or perhaps even start with, suppliers at the bottom of the chain, some may even demand payment before releasing anything, irrespective of contractual terms.

Projects could grind to a halt.

Afterall would you want to give PFC credit that could cause you difficulty, or even kill your company, if you didn't get paid?

Sadly it might take quite some time to get the accounts signed off by the auditors.

Still can't get my head around the BOD saying

"we are in financial trouble boys, so we are going to suspend the shares in a couple of days"

They must have gone to the Humza school of forward thinking

So why has the share settled at 15p.

Is there any logic to this number ?

@confluence - it is possible that the reults will be written/contain enough to keep the banks/lenders/creditors on board and not provide any resolution to the ongoing saga.

They may only provide further vague commentary similar in nature to the most recent RNS.

On the other hand, any comment or remarks made by the auditors would warrant close scrutiny.

Paul Curtis - If so much new money comes in, who then runs the company, the management that dug the hole, or a whole new team ?

Surely whoever lobs some new money into the company, be it by D4E, takeover or whatever, surely the amount of money that is needed is going to give the incoming party a say in what happens going forward, a say in whether the exisiting management continues, a say in whether they bring their own people in to steer the ship in some way.

Perhaps these questions are occupying the mind of some of the BOD as much as doing what is needed for the company.

Financial reports - expect the unexpected

Snapper10 - wouldn't it be the case that to get a revolving credit facility that they would have had to give some security, but that the security would have needed to be worth perhaps double the credit facility limit and that said security could not have a charge over it to somebody else ?

Also, as it is a credit facility, so not a loan, it does not immediately mean that they have max'd out the facility limit, indeed they may only be in hock for a small proportion of the total credit limit.

An RCF is quite expensive to run compared to an ordinary loan and are best used to fill a cash flow hole, rather than as a long term loan.

They need cash, but, the sale of non core assets will take time, which they don't have.

A D4E solution is near, but the "new money" wants a certain level % of the equity/control, therefore a rising share price kills the D4E deal (because it messes with the E4D ratio) that they are looking at, and they feel that they don't have time to find different "new money", perhaps, they also get to keep their jobs on the board.

Formerlyeasyp - All this proves is that nobody really has a clue as to what is going to happen, be it good, bad, or indifferent.

Credit_Limit - If you are right that a D4E solution has been discussed, then maybe it has tacitly agreed.

That tacit agreement would have been for an amount of money that equates to a number of shares, which in turn equates to a paticular % of the company.

A rising share price could mess up those calculations if the deal was close, perhaps causing an involved party to have second thoughts, one way or another.

Perhaps a D4E deal is cliser than anyone thinks.

As for sale of core assets, surely they can only be part way through any such deal, and in any event I don't believe that the sp would affect a sale.

MaryBr190 - Reality maybe, but why this RNS and why now ?

It doesn't convey anything tangible

It clarifies very little

It does stir the pot ahead of the expected update

What is "management" trying to achieve?

How does crashing the share price by issueing the RNS help in their quest for a D4E agreement with someone ?

Have they already agreed the deal ?

Are the board members now negotiating for their own positions with the new largest shareholder ?

It will be interesting to see what happens if/when it is reported that one of the shorts has blinked and closes out

I don't really know who is going be selling a large quantity of shares to save the shorters day.

The vast majority of retail must be in the hole and waiting on a rise to 60/70/80p along with any institutions in the same place.

Those that bought in at the low 20's, or on the way down can't be a big proportion of MCAP, whilst those that day traded at the bottom equally can't be a big proportion of the MCAP - they would all wait anyway.

The MM's surely don't hold that much in their back pocket.

Those that are trading the dips on the way up are surely just circulating the same shares.

Company insiders won't be sellling if they know it is all hunky dory, which it apears to be otherwise something would have leaked.

I know everyone has their price, but where is the 10% of MCAP coming from ?

Or am I missing something ?