Member Info for mcadder

So don't shoot the messenger or did I miss something remotely positive in Friday's update?

I've never shorted I wouldn't know how to and if I had I would have been very very pleased about Friday's drop and today's but I'm anything but happy. I also have good reason to now talk this down as the company provided that shocking update on Friday

Didn't expect it to drop that quick. 0.79p sell just gone through

Nice addition to the bod especially with links to GGP! Brian has a plan!

Oh dear. We have been told that shareholders effectively will only hold 5% of the company as of Fri and some think the SP will move north this week?

Tbf I don't think it will open down at 0.1-0.2 I think initially around 1p first thing. But without anything positive in the pipeline now which is pretty much nailed on from the last abysmal RNS, it will likely drift gradually down to 0.5 and settle between 0.2-0.3 next couple of weeks

Sounds pretty straight forward to me.....

The Corporate Insolvency and Governance Act 2020 (“CIGA“) ushered in a flexible restructuring compromise or arrangement for companies in financial difficulty (the “Restructuring Plan“). The legislation governing the Restructuring Plan sits alongside that for schemes of arrangement and is included in a new Part 26A to the Companies Act 2006.

The Restructuring Plan does not apply to companies that are solvent with no risk of insolvency; rather it only applies to companies where two conditions have been satisfied:

condition A: the company has encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect, its ability to carry on business as a going concern; and
condition B: a compromise or arrangement is proposed between the company and (a) its creditors, or any class of them; or (b) its members, or any class of them; and the purpose of the compromise or arrangement is to eliminate, reduce or prevent, or mitigate the effect of, any of those financial difficulties.

Process
The process is similar to that for schemes of arrangement:

a court application is made and heard for permission to convene meetings of classes of creditors (and members, if applicable) at which the court will consider class composition, and in the case of overseas companies, jurisdiction;
the court-approved meetings of creditors or classes of creditors and/or members are held at which the creditors and/or members will vote on whether to approve the Restructuring Plan

RNSTranslator - it seems like your wasting your time with littlened. Let them keep believing that this will now soar to 400M Mcap even though there will soon be nearly 40B shares in issue.

Put simply, this was only at 47M Mcap Thursday evening just before the bombshell Friday morning RNS.
We are now about to go from 100% ownership of Hur to just 5%!! So based on the fact that nothing else has changed for the better let's put it this way.....

47M Mcap for 100% will now be roughly
2.35M Mcap for just 5% with our existing 1.91B shares!

The value of the company hasn't increased, it's just been diluted to oblivion!
Therefore 39.6B shares at 0.2p each will be 79.2M Mcap which is still 30M more than what it was on Thursday. It doesn't take a genius to figure out how much lower this is going. When it will get there is anyone's guess but it won't be pretty.
Especially now the market knows that £50M worth of shares will soon be issued just to pay debt and stop Hur becoming insolvent - for now. A company's Mcap can be materially improved overnight 3 or 4 times when a lot of money is raised for a value enhancing acquisition or to further whatever asset or project a company is sitting on but not in this case.

RNSTranslator - I've spelt it out this weekend just like you have but there are some that are in complete denial attacking us about being negative and having an agenda. All we are doing is spelling out what the company released on Friday and the implications of it. Not our fault if it's come to this but remember, the bod have been in discussions with an ad hoc group of bondholders for the last 7 months. This was the result of those month's of discussions mainly because they are negotiating with bondholders from a very weak position. It's utterly ridiculous to think now at this late stage what CA could bring to the table.
This is effectively a going concern now and who in their right mind is going to stump up £50M to address the debt shortfall when only 7.1M recoverable barrels are believed left at Lancaster, production is declining, the stability of the well also uncertain, plus an extra £100M needed to address a further production development plan and decommissioning?
The bod have to write off £50M of the debt somehow because they know full well the debt due in full will not be paid by the due date.

If CA wanted to take appropriate action to remove the bod because they had an alternative way out of this mess they should have been putting those plans in place from Sept last year when the company started warning about the potential for little or no shareholder value left at the end.
It's too little too late now that window has well and truly passed imo.

If they (CA) were "shovelling up shares" on Fri and literally filling their boots the SP would not have finished over 50% down on Fri. In the last hour of trading after a dead cat bounce the SP just kept dropping probably because people were starting to properly digest the implications of the update. That it was resulting in not 95% dilution of existing shares which would have been 3.8B shares but 95% control of the company with a conversion price of each share of 0.1p and over 39B shares.

CA would not have had a heads up, they would not have known till the update was made public. After all CA said their communication with the bod had deteriorated over last couple of months.

The idea that CA can suddenly save the day is fanciful at best. There's nothing anyone can do given the position the company have been warning about for months and months.

Either way I wouldn't be surprised if Trice sold his shares a while ago. Usually when a director leaves there maybe a 3 month period after stepping down where he is not able to sell but as far as I'm concerned he could now have sold a few months ago over the space of a week or 2 and there wouldn't be any requirement for them to notify the market.
If he has sold at say 2.5-3p then he'll be considering himself quite fortunate.

"whats the point to sell it for 1p"

You'll be lucky to get 1p in the morning for them anyway the way this is going. But yes by all means keep holding

CA themselves acknowledged that communication between them and the bod of Hur had deteriorated recently and I suspect that they knew absolutely nothing about Friday's update until the point where we all knew when it was made public.

It's really sad looking back and 4yrs ago Mr Bernstein was understandably so positive here. They could have really succeeded here but the bod can't begin to formulate a plan to look for significant quantities oil that appears after all not to be there and pay off massive debt owed while production declines and remains uncertain.

CA comment 4yrs ago....

The head of AIM-listed Crystal Amber said he is hopeful a deal will be struck soon, potentially with an oil major.
Richard Bernstein, investment manager, said: “If things go according to plan, Hurricane will be capitalised in the billions, not in the low hundred millions.”
Currently the AIM-listed explorer has a market capitalisation of £104million. Analysts say Hurricane is targeting first oil in late-2017 with full field production to start five years later.
And Lancaster might be just the tip of the iceberg. If progress is made on the field, Hurricane could largely de-risk its other west of Shetland blocs.
“Without getting overexcited, this could be a very, very large company and great for Scotland, great for the United Kingdom,” Mr Bernstein said.
He also played down fears that Crystal Amber could meddle in Hurricane’s operations, despite the fund’s “activist” tag.

Haha very true Slift. I haven't bothered checking anyone's posting history here including kammi who I think needs to grow up and stop clutching at straws about who said what and when.
Friday was the point at which I had to accept based on that announcement that any positivity I had was gone. I think that shows a degree of maturity on my part unlike some here.

And by the way kammi I've never claimed to be an expert. And it certainly doesn't take an expert to realise after Friday's absolutely shocking update that this is done for.
Just remind yourself that bondholders are not getting £50M of their debt written off for 95% of the existing shares (which in itself would have been ok in the circumstances) - they are getting 95% of the WHOLE company after dilution which means something like 38.6B shares!
Hence why some have put a valuation including Oilman Jim on the shares of just 0.1p!
Remind me again what was the closing price on Friday? 1.08p??

Kammi - checking my posting history will not change the fact that this is knackered. I've accepted it now as of Friday and been very vocal about it ever since. Friday for me was the realisation that this is now over for shareholders.

Another sign of desperation on your part kammi.

The sooner you accept it the sooner you'll prevent any further loss than what you've already incurred. And I have NO intention of EVER EVER buying back in here. Not even when this is 0.2p
I think there will be a rush for the door tomorrow when the market re-opens

Oilman Jim - I must admit this guy has been continually consistent on HUR for the last couple of years. The writing's been on the wall for some time....

May 02, 2021
Hurricane Energy (London HUR US OTC HRCXF) announced its proposed financial restructuring. As I said in the blog a few weeks ago when the share price was at 2.7p, the shareholders are done for. In return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company. That values the existing equity at just $2.63 million, which is £1.9 million, less than 0.1p per share.

I’ve actually been warning about Hurricane Energy all the way from the low 30s down. It was more or less clear what was going to happen here and no special skill was required to know. All you needed to have done was to read in full - and understand the consequences of - the contents of HUR’s RNS announcements. For those who got hurt, perhaps to protect yourselves in future, it’s worth remembering who was touting Hurricane Energy over the past year or so and recall that their “research” in fact was entirely false.

This was the warning back in December. Imo CA should have been taking a more activist approach with Hur as soon as this became known back then as this was pretty signalling the beginning of the end as far as shareholders are concerned.

Hurricane Energy warns shareholders could be left with ‘no value’
UK North Sea oil group says it may have to run down key asset and halt further development

Shares in Hurricane Energy plunged by nearly a third on Friday as the North Sea oil producer warned investors they faced a possible dilution or even being left with “no value” as it starts talks with bondholders over its future.

the company said on Friday it had appointed advisers to commence talks with “key stakeholders”, including bondholders, as it tries to secure “suitable funding arrangements” for developing Lancaster, which is located in waters that often suffer poor weather conditions.

Hurricane warned there would be “a risk of dilution to existing shareholders from a possible restructuring and/or partial equitisation” of its bonds.

You know exactly what I mean!

What appropriate action have they taken since they made that statement at the beginning of March?

Answer - Nothing it seems