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Clearly they've been negotiating this with the ad hoc group of bondholders for 7 months based on the covenants written in black and white regarding the bonds themselves. Although this is grotesquely unfair and like daylight robbery to shareholders legally it will be watertight and hold up in court I'm afraid.
It's either the court accepts this and shareholders get almost nothing or it's rejected at court and they get absolutely nothing as the company gets wound down once the bondholders are paid. Take away all the money in the bank (which will be used to pay the bonds) and you are effectively left with potentially only 6 years recoverable reserves (if the estimates from latest CPR are to be believed), a well which in next 2 years will be uneconomical to operate and potentially £50-£60m funding required to exploit the remaining reserves through drilling of a new well or sidetrack once current well becomes uneconomical plus decommissioning costs.
They (the bod) have known this for some time hence the warnings from them months ago which many of us ignored as we thought something would come along to save the day or we'd discover that the bondholders would agree to allow more time to pay while at the same time agreeing on a production development plan to extend the life of Lancaster and a recovery in Hur and it's share price.
Clearly they have reached the conclusion that they are going to be lucky to produce enough to pay bondholders back leaving effectively nothing for shareholders and that any plans for further production and development will certainly not end up benefitting us as we own just 5%.
So 90% reduction in reserves, and now 95% reduction in what shareholders will own as a company. Talk about rubbing salt into the wound. I am absolutely seething about it but this is the reality and even CA with their large holding will not be able to stop it. And even if they bought a shed load more shares with the current shares in issue to take their holding to 25% and call an EGM to try and block this the other alternative is the company just gets wound down.
Even if they managed to get the current board removed the likely covenants attached to the bonds themselves that have to be paid back will still need to be complied with. In these circumstances with this being a technical default, the company basically has no choice but to find this £50m shortfall to pay the bonds which is what they announced. No white in shining armour is going to come along and step in especially given the huge downgrade in reserves, costs needed for further development, decommissioning costs and the colossal debt. We have been pretty much shafted quite simply.

I think it's down to CB covenants. Would be something like "CB have right to default company 12 months prior to maturity if company cannot prove it is able to pay back the bond".

I think that's exactly right slift and herein lies the problem in so much that legally there will be nothing that can be done to stop this happening now.

Someone said this earlier today.....

"I made up my mind to stick with the experts who had put millions of pounds and added recently to their investments recently in the knowledge of Hur debacle.....I think this maybe a safer choice..no brainier!"

When you refer to "the experts" I take it you are on about CA??
Don't forget what they said only back in March....

Crystal Amber, which holds more than 11% of Hurricane, said it had experienced a “dramatic deterioration” in the quality of engagement with the London-listed oil firm’s board in the last six months.

In the last 6 months but yet they kept buying. And they promised this back in March....

"One of Hurricane Energy’s biggest shareholders has threatened to take “appropriate action” to maximise the company’s potential after complaining of a breakdown in their relationship."

Well so far there has been nothing. Not even a single word from them about Friday's wipeout update. What has shocked many of us about yesterday's update is not just that it has been announced so early on but that it represents a 95% loss of the company as far as shareholders are concerned.
Hur's bod after 7 months of talks with bondholders have reached this agreement? My reckoning is that they've had no alternative but to propose this due to the very detailed legally binding terms and conditions that may have related to the financing by the stakeholders being offered in the first place in the event of any "potential future default".

That's why I am of the opinion that there is nothing that can be done legally to turn this proposal around in court. It's happening unfortunately.

"95% share dilution may already be priced in to the current sp, by highlighting that the 95% of 1.992bill shares"

Wrong.
So far the SP decimation down to 2.3p from over 30p last 12 months before yesterday's update reflected the 90% resource downgrade and associated problems with the well and water cut etc etc.

The drop from 2.3p to 1.07p reflects the start of the realisation that it's game over. And when it sinks in by next week with more investor's that the bondholders will have 95% of the company for £50M leaving shareholders with 5% then this unfortunately has a lot further to fall.

Yep that's exactly what's going to happen here....

HURRICANE ENERGY
Greig Cameron
Saturday May 01 2021, 12.01am, The Times

Shareholders at Hurricane Energy will be virtually wiped out if a restructuring plan is approved.

The oil explorer is proposing a debt-for-equity swap that will hand 95 per cent of the company to its bondholders. It warned yesterday that the alternative would be a controlled winding down of its operations and insolvency.

Quite simply the realisation of just how bad a deal today's update was and the realisation that imo CA will not be coming to the rescue on this was enough for me to sell and never touch these again with a bargepole. I myself was deluded for thinking there was hope and anyone else still thinking so is too.

I did and I confirmed I sold for obvious reasons after realising CA is unlikely to come to the rescue here. Checking my posting history doesn't change the fact that this is almost the end here as far as shareholders money is concerned

"Well that's from the current board" ???

The current board have been in dialogue with stakeholders for 7 months! This was from RNS way back on 11th Sept.....
"We will be engaging with all our key stakeholders regarding our forward work programme and financing arrangements" and more recently....
"The Company continues to engage with an ad hoc group of its convertible noteholders"

So in a nutshell after 7 months of discussions the current board have no doubt been left between a rock and a hard place with regards to how to pay back the debt in a way that satisfies the bondholders as quickly as possible while they still can from the declining production.

Anyone else that comes along thinking they can shake this up and suddenly persuade the bondholders of an alternative arrangement given that production continues to decline plus the 90% downgrade of resources is deluded!

Unfortunately the financial wellbeing of the shareholders will be of no concern to the OGA that's not what they are there for.
Proposed or not this is the scenario facing Hur shareholders if it doesn't get through court....

"if it is approved by Bondholders but not sanctioned by the court the Restructuring Plan will not be capable of being implemented. In that scenario, it is likely that there would be a controlled wind-down of the Group's operations followed by an insolvent liquidation of the Company".

If anybody thinks CA can come to the rescue and wave a magic wand I think they are sadly mistaken. Whatever CA try to do they will not be able to rid the outstanding colossal debt owed to the bondholders and the desire of those bondholders that will want their money back. I think ultimately the bondholders have been wanting assurances that an agreement is reached earlier than anticipated while production from Lancaster continues to be economically viable. Along with higher oil prices this just increases their chances of the debt being paid back sooner but at the expense of shareholders. For months the company have warned....
"It should be noted that there is a risk of significant dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds and of potentially limited or no value being returned to shareholders."

I suppose they can't say we weren't warned!

There is nothing CA can do in this situation otherwise I'm sure they would have been very vocal about the update today but all we have is silence.
In a situation like this there are probably numerous fall back clauses written into the contracts between the bondholders and Hur going way back which between their lawyers have allowed this wholly unfair arrangement to be made. It will be 100% watertight and has taken month's to be formalised. I can't see any room for this to be challenged I'm afraid.

There is no good news coming that's the problem and today's update confirmed that hence the market reaction and the fact the SP continued to slide during the day as reality dawned on investor's including myself.
I'm afraid the bondholders and Hur have spoken and this is obviously the culmination of month's of discussions since probably Sept.
Therefore there is no good news coming in a few days, weeks or months not for shareholders anyway. The deal is far worse than what even the most negative of poster's believed and no word at all from CA who very recently had been unable to get any communication from the company.
Luckily for me Hur only represented a very small part of my portfolio. I wouldn't care if this rose 10, 20 or 30 percent next week as all it would be is a dead cat bounce and be heavily sold into. The amount of dilution heading shareholders way is truly astounding according to today's update and to be left with 5% of something that on the face of it is worthless? Well for shareholders anyway but the company did warn month's ago that there could be little or no value left for shareholders in the end. I crystallised a 15k loss today but I'm sure many have lost tens and hundreds of thousands and I feel sorry for them.
Any glimmer of hope left went up in smoke with today's update and is a lesson that bondholders in this situation will always come first.

Belfast Telegraph
April 30 2021 11:00 AM
The reintroduction of apprenticeships at Harland & Wolff rekindles memories of the years around the foundation of Northern Ireland when the province was known as the anvil of the Empire because of its pre-eminent shipbuilding, engineering, and ropeworks industries.

Securing an apprenticeship at The Yard, as the H&W shipyard was known, was akin to getting a job for life. It was an industry which employed thousands mostly from east Belfast and the Shankill areas of Belfast. Times and the fortunes of Harland and Wolff have changed dramatically since those days and it was only recently that the company synonymous with Belfast was saved from extinction.

The apprentices, who will be recruited from September this year, will need to have better educational qualifications than their predecessors and learn vastly different skills, but it is encouraging that a company with a 160-year history in Northern Ireland has diversified and is bringing on the next generation of workers who will ensure that it will prosper in future.

Didn't donotpanic predict a bounce back to 1.5-1.7p today? Dead cat bounce is more appropriate here. Sold out in the end I just can't see anything stopping this drifting below 1p. Only value now is for a trade between 0.2-0.5p

Doesn't really make any difference if there's another lift happening at Lancaster not after today :((

Glad I held off buying more and this morning bought another 2M.

I was impressed by last night's detailed presentation and frankness of Eytan. As I mentioned yesterday am hoping to buy in here today as I see short term quite a bit of upside. This will be back to 0.6-0.7 in no time

Now for the 6pm presentation....

Very happy to know I'm right as I've been keeping an eye on this one all day. Some were lucky enough to buy between 0.35-0.3545.
Not going to get drawn into a tit for tat debate with clearly some disgruntled holders (or ex holders not that I care either way)
If I can get in around 0.35 tomorrow I'll be happy for me and me only.

Bid was between 0.33-0.34 most of the day. No way anyone would have got 0.35 to sell 12.5M. It's a buy. Now all I need to do is get my timing right for a cheeky punt tomorrow ;)))

The 12.5M was a buy - just saying

May take a small punt tomorrow