Member Info for mcadder

Well this helps to explain the convenants we've been talking about for some time now.....
Gary Newman
@GaryNTrader
1h ago
#HUR "Interesting that the convertible bonds also have built in covenants relating to any change of control event for the company. Wonder if the bond holders have the option to immediately call in the debt should a change of control event take place? P18 of the EPS funding"

" In addition, the company convenants that it shall not enter into any bank loan or similar arrangement with a bank or other financial institution, nor will it draw down under any revolving credit facility or other similar facility with a bank or financial institution, prior to the date falling 12 months after the closing date.
The Convertible bonds will also benefit from a capital markets style negative pledge (subject to certain exceptions including existing security interests), events of default (including a cross default subject to a US$15 million threshold) and a tax gross-up in respect of any UK withholding tax (subject to certain customary exceptions and an issuer tax call). In addition, the Convertible bonds will benefit from certain other provisions dealing with change of control and delisting events.
Settlement and delivery of the Convertible bonds is expected to take place on or about the 24th July 2017 (the "Closing date").
Settlement of the Convertible bonds is conditional upon (i) the passing of the resolutions and (ii) Admission.
It is intended that application will be made for the Convertible bonds to be listed on the International Stock exchange (or other recognised stock exchange) prior to the first interest payment date, being 24th October 2017.
The company and it's subsidiaries have agreed to a lock-up undertaking for a period of 90 days from 30th June 2017 in respect of the Ordinary Shares (and equity-linked instruments in respect of the Ordinary Shares), subject to customary exceptions and excluding any Ordinary Shares to be issued pursuant to the Placing, the Convertible bonds issued pursuant to the over-allotment option and Ordinary Shares issued pursuant to the follow-on offering referred to in paragraph 3 above."

I think this pretty much sums it up.
from tournesol on advfn....

"You are utterly delusional. The current board/executive have done their best to sort out the shambles created by their pre-decessors but they simply have had no room to manoeuvre and no resources to deploy. The difficulties arose because the geology turned out to be different from what the team led by Trice expected. That cut the co off at the knees. Hur's reserves and resources did not mysteriously vanish. They were never there in the first place. The OWC is much higher than Trice reckoned, the incidence of fractures is much less than he reckoned and the few fractures that, the incidence of fractures is much less than he reckoned and the few fractures that have been found are much less productive than he predicted. He simply got it wrong, wrong and wrong again. Consequently there seems to be little or no value in Hur's acreage. That being so, there is no prospect of new investment and no possibility of farm-outs. Wake up and smell the coffee, it's been brewing for 18 months. This is not a sudden deluge of bad news, it is simply the unwelcome arrival of reality after a long period when co and shareholders have been provided with a constant stream of negative info which they have simply refused to absorb. The BoD has belatedly recognised that they can't go on denying the blindingly obvious. Some shareholders seem unable or unwilling to accept the unavoidable truth."

UK launches competition to build three new Fleet Solid Support FSS ships
Naval News May 2021 Navy Forces Maritime Defense Industry
POSTED ON SATURDAY, 22 MAY 2021 19:18

........"Building on the commitment made in the recent Defence Command Paper to create a shipbuilding renaissance, the competition will help revitalize British shipbuilding by requiring a significant proportion of the build and assembly work to be carried out in the UK.

With a £24 billion multi-year settlement to modernize our Armed Forces, the competition is an exciting moment for UK industry to design and deliver a world-leading capability, securing highly-skilled jobs and boosting homegrown skills.

Designed to challenge the shipbuilding industry, Defence Equipment and Support have issued the contract notice inviting companies to register an interest in participating in the tender for the design and build of the ships, which will incorporate next-generation technology.

The successful bidder can work in partnership with international companies but would be required to integrate the ships in a UK shipyard. The Government has already pledged to double the investment over the life of this Parliament to more than £1.7 billion a year, providing a pipeline of work to sustain jobs and skills around the UK.

This will be further supported by a refresh of the National Shipbuilding Strategy, to be published this summer setting out the Government’s commitment to the UK shipbuilding enterprise and its supply chain."

"the truth is CA have this situation under control"

Know that for a fact do you?

Captain - If it turns out the bod have lied and things aren't half as bad as they are making out then absolutely they should be done for fraud. But unfortunately the likelihood here is that the situation financially and from a reserve and production point of view is just as bad as the company are making it out to be. They (the bod) would know that there would be intense scrutiny and examination from other parties of the detail of every sentence in every RNS issued to date further down the line so they will very likely have covered their backs with regard to the accuracy of every word.
CA may indeed disagree but they also have an awful lot to lose and it stands to reason that they would try some form of action even if it doesn't change the outcome in the end.

"I was wanting a cheap takeover so hung on for as long as I could but I would have thought when it was under 1p somebody would have jumped in with an offer but they didn’t so I presume it is worth nothing."

Agreed and the reason no one did is because there is now no value left here...

Nice to see you wasting your night trawling through my posts. I was only ever here in the hope of a breakthrough being reached with the months of discussions with the bondholders and possible future investment to prolong production. That 30th April RNS killed off any chance of a positive outcome here. But keep fooling yourself everything will be fine here ;)))

"I don’t believe a word you say leaky bladder"

Feel free to just ignore my thoughts then krackpot and keep telling yourself everything is absolutely fine, there are no problems whatsoever and because of this the SP will open up at 10p on Monday LOL

HH - they (the shareholders) will only be left with 5% of the company following a $50M debt write down because that's basically the value of what is left here. Knowing that there are only 7M barrels recoverable at present and knowing the next 12-15 months production will just be used towards paying off the bond (including the $50M write down) then it doesn't take a genius to figure out there's virtually no value left.
And that's providing the well continues to produce with no ESP failures. Average production will continue to decline with an average of just 9.5k a day during 2021.

kammi krakpot - I've already made my money back on what I lost here and more and it's no skin off me where the SP ends up here. I've been very consistent with this dog since selling at 1.15p, in so much that I would not even have bought back in at 0.2p and most certainly wouldn't at 2p. Why? Because nothing has changed but I'm more than happy to place on record the reality of the situation Hur is in - 5% equity or 0% take your pick.
Looking back on things now I can understand why no institution or major fund would offer any funding to Hur given that there is nothing worthwhile in terms of assets to lend against following the more than 90% reserve downgrade and just 7 million barrels recoverable at Lancaster. I don't blame CA for trying something given the money at stake but if the oil ain't there then it ain't there. Plenty of water though...

kammi the clown - there are lots and lots jumping in purely through the FOMO factor in the HOPE of something positive happening. It's still either accept the plan or face a controlled wind-down. That debt ain't going away and whoever is on the bod of Hur still has the same problems facing them. Nothing has changed ;)))

"institutional fundraising efforts utilising today’s ultra low interest rate environment, long missing shareholder engagement, new CPR and possibly subsequent re-found WoS HUR reserves, increasing cashflow"

Tuexedo - no, no and no

Why would II's come aboard now when there is effectively no investment case because there is no longer commercial volumes of oil down there which are also no longer economically viable to extract.
Any why would there be any appetite for a NEW CPR when nothing has changed?
The 90% downgrade warning back in July was the beginning of the end and the latest CPR the final nail in the coffin. So there is NO chance of there being re-found WoS Hur reserves. The oil is basically not there anywhere near the quantity we were led to believe. Plenty of water down there but not oil as it turns out.
Increasing cash flow from this point is of no benefit to shareholders - only the bondholders now...

I hear what you're saying British and I welcome the example of fairness being displayed by the judge.
It was mentioned that a "wind down" of the company as an alternative to the plan would not benefit bondholders as they would be worse off. This is very true. BUT the assumption has been made that because a wind down would give the bondholders a worse return that they will not allow this scenario to play out. The problem is the company are warning that the situation is so dire that should the plan not be implemented they will have no choice but to let a controlled wind-down happen, given the fact the fundamentals are so bad and time has effectively run out.

"Will still lead to significant dilution, but think it'll maybe leave shareholders with 10-15% equity."

So basically given that nothing has changed in terms of the poor fundamentals for Hur, the best case valuation will be around 0.30p per share instead of 0.10p?

Whatever ruling the judge gives they cannot suddenly magic oil from thin air that clearly is not there as they've been warning for the last 10 months!
There is still the $230M debt, an average of just 8.5k - 10.5k bopd for 2021, production from only one well, decommissioning costs, no available investment for further production, no certainty that the OGA will allow them to produce below bubble point, just 7m barrels now recoverable plus this....
"from 5 June onward the day rate for the Aoka Mizu increases from $25k/day to $75k/day. See Lease Overview p170 of 651"

"one of the ESPs on Well 6 has failed. If the remaining one fails then it becomes impossible to repay the bonds. Similarly if the oil price were to drop significantly, or if the production rate declines faster then plan (either due to increasing water cut or approaching bubble point)"

"as someone else commented, 5% of FA is better than nothing. Any further upside is reliant on a flexible extension of the AM, that may not be forthcoming... Sorry to see it go down like this after the potential at the start of the EPS. Dr T should be held responsible for the "misinterpreted" original OWC."

Have I missed anything?

Nice reply there stokey ;))

Yep I'm still here too pump and dump round 2...

Exactly slift and with or without a shareholder vote they're still no better off

"Company lawyer agreed that an orderly wind down would make more sense"

To be fair the alternative scenario if the plan isn't approved was always a controlled wind-down as opposed to immediate liquidation but a controlled wind-down is still not good from a shareholder point of view

Hey sindydoll - never mind me what about the disgraceful rampers that caused the real damage getting people to buy in up to and over 60p??
And at a time when all the problems were starting to occur in the background?!
All I've done is lay on a sense of realism what is likely to happen either way if the restructuring plan is approved or not. Throwing stones in a glass houses comes to mind lol

Don't worry we're all still here - if the judge doesn't approve the plan looks like the 2nd scenario of 0% following a wind down of the company will just happen - either way it's buggered....