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Another day of destruction here. No comment from BoD at all as to what was the purpose of the new facility.

It seems that by next month or October max, we will get the full year results.

I propose that between now and that time, we form our group here. Once the full year results come, if we do not see any improvement in the company’s performance or stock price, we can then take the step of reaching out to the institutional investors. They will be more inclined to engage with us following poor results I believe

@hash - agreed, it is better to start this sooner rather than later.

I am unfortunately amongst those who got burned with CINE, but what I believe is that if we dealt with the CEO firsthand, there could have been a higher chance of getting home and dry.

Best thing would be to form a small group now of private investors who are not pleased with the current management, even if it’s just a few, and we can begin to find the people responsible for the SDRY shareholding at the respective institutional investors. Compose some emails, send them off, and see what happens. Even if just 1 or 2 institutional investors get on board it could be sufficient to wake the CEO up a bit.

If that’s the case, let’s see if we can oust the guy. Private investors alone might not be able to do it, but if we begin the process of engaging with larger institutional investors who are on the same wavelength, we could save ourselves before it gets to that point.

SDRY should not be utilising the facility. How much more money do they need exactly?

My hope is that the new facility is there as a backup, and that SDRY does not expect to use it. Just a contingency. We will find out in due course when the results come out.

Why do the CEO and CFO have to go? Because of some periodically poor stock performance?

The past results (although not extremely good) shows that the company is on a good track in my view - increasing revenue and most importantly, reducing gearing. I made notice that if the company did not reduce gearing as they did this time, they may have been able to report a profit.

It takes time - I think the fact that both the CEO and CFO got us through all of this disruption with no rights issue or anything extremely detrimental to shareholders is a good thing. Patience is required here, unfortunately I topped up at 94 and 95 last week, but if this drops significantly I’ll buy some more.

I have previously heard of JSE in the past, but don’t invest at all in the oil and gas sectors.

But reading the RNS this morning, this has become a lottery ticket style punt. Maybe buy a small amount now, and if the problem is found to not be serious, then you could bag a decent gain.

I really should do some basic balance sheet and income statement research before investing…

Thank you @Hexam - same to you :)

Well, the day has arrived. The culmination and end result of over 3 years of investment for many - even more for some.

Sad it ended this way - to those LTHs who have been present over the years, I salute us all. Through a lot of problems and ups and downs we all came together to support and provide information for each other.

One thing for sure is that Cineworld (or midco or whatever rubbish they are calling it now) isn’t going to find it easy - this isn’t me wishing bad, but just a fact. Just look at how long they took to find some CEO to take over the position, and not to mention that even after the restructuring they have a huge level of debt. If I remember correctly CINE had about £6-7bn of assets, and after restructuring you’ll cut about £4bn of debt, so you’re left with £6-7bn in assets with £6bn in debt. The balance sheet remains quite unhealthy still. You just need to look at what happened with Twitter, Morrisons, Asda etc where their balance sheets became loaded with debt.

To all those LTHs, both that still hold now or sold earlier, know that this isn’t the end of the story. Continue working hard, perhaps play it a little more safe, and you’ll claw it back eventually, including those that put in £70k+ or other comparably large amounts.

Take care and all the best everyone. See you around LSE :)

In my view. If you look at how much they’ve reduced the covenant gearing this time, I believe that they could have actually reported a profit if they didn’t decide to reduce gearing as much as they did this time.

Also note that the report said that they anticipate H2 to be top-heavy in terms of earnings, so could be the case that some promising performance emerges later.

I intend to buy some more today.

Please note: small typo on my previous post. I was supposed to say NEX were NOT massively concerned :)

Nice to see us holding our price steady today (so far)

@Rabnesbit - good morning, and well said.

Anyone concerned with SHEIN, TEMU etc, just look at what happened to WISH and you will get your answer.

Whomever is pumping money into these companies that are prepared to lose vast sums of money on inefficient orders can go ahead, but this is essentially WISH with a different wrapper around it.

Back a few years ago, FLIXBUS entered the UK market and they did the same thing that WISH, SHEIN etc are doing now. They sold tickets at a loss to try and grab up market share. NEX (now MCG) wrote in their earnings that they are aware of their presence, but from what I remember, they were massively concerned. A few years on, NEX/MCG is still in existence and taking in money.

Whilst it is a completely different sector, it simply demonstrates that I have never seen a single occurrence of this ‘sell quick and at a loss, make money later’ ending as intended, same thing will happen with SHEIN/TEMU, just like it happened with WISH in my view. They may co-exist, but they won’t put ASC out of business in my opinion.

@BlueBuxton - I meant that if shareholders were to be getting something I’d probably miss out. The 3p was an example.

If I were to buy back in today, my average would be the current price at the moment - I sold all my investment a month ago back at 0.7p.

Still a huge loss, whether I sold one month ago, two months ago, or today - the difference would have been mostly inconsequential :)

Hey @BlueBuxton - I just carried out a quick calculation and found that if I came back in now, my average would be 98.9% lower than it was before :)

I still watch from the sidelines and hope for the best because if something good happens and there is hope for shareholders at the final hour, there is very little chance of the sp going from 0.36 to 33p (my previous average) in just one day, so there will be ample opportunity for me to re-enter at a lower average.

Of course, if it isn’t long-term hope and the good news is that they’re going to give shareholders something resembling a payout at the end, I’ll probably miss out on that one - if it is say 3p/share payout, this thing can easily go from 0.36 to 3 like that, so I’ll likely miss the boat. Either way, c’est la vie.

Good evening @BlueBuxton - glad to hear from you again. I hope you’re doing ok.

Not back in again at the moment, but watching from the sidelines for any green shoots.

I do remember on the Discord that they were asking everyone how much they held, and it came back to around 2% or so if I remember correctly. Do you have an updated, more accurate figure from the shareholder’s committee?

@poorinvester - thanks for your response earlier today. The overriding issue with the payout is that it is not coming from CINE’s pocket directly. The lenders are giving it to Mooky independently. It is separate from the C11 process, the reason why the payout exists is to make it nice and easy for the lenders in my view.

It must also be said that as shareholders, we don’t only invest in the profit, we invest in the whole capital structure, which includes the debt. The current capital structure is one where debt is heavier than assets, so even if the whole company were to be wound down today and everything sold off, there still wouldn’t be anything for shareholders.

However, your point of shareholders launching action about Mooky’s handling of the situation is one of interest.

I agree that the board has not acted in the best interests of shareholders, but what can we do now? Remember that Cineplex is waiting for their money from 2021, surely there is also an order that legal settlements/lawsuits need to be paid out? So even if the court rules that there is £1bn or whatever amount for shareholders as compensation, if CINE can’t pay, CINE can’t pay, isn’t it? Otherwise, Cineplex will come back in and ask why it is that the shareholders get priority payout of their award whilst their award is still on hold since 2021?

Good afternoon @poorinvester - I don’t wish to involve myself in the argument, but I have a genuine question to ask you so I can better my understanding.

Why does CINE need equity-holders to be on their side? They have a court and lender approval to go ahead and wipe out the shareholders, it is all in black and white. Even if every shareholder went to CINE HQ today and caused a riot (not encouraging it) what is done is done, it is all on paper that they can now wipe us out with no consequences or repercussions at all.

The only way I can imagine any positive end now is if shareholders can form an uprising and vote out Mooky. It is very clear that Mooky was on the side of the lenders from the start, so if you can remove him from his post now, you could potentially get someone else in who is willing to put this process on hold, and see if they can reverse course. The problem of the debt still exists, but if the new CEO can give lenders confidence that they can get back the full sum of their borrowings in 5-10+ years time, lenders may place more trust in that new CEO and may decide to give CINE one final shot, especially if the new CEO can give a very detailed, clear plan of how he will achieve that.

The attempt to form a shareholder’s committee was good, but the better thing would have been to use this board, Discord chats etc to find out exactly how much all of us are holding, and if we hold enough, we could call an EGM and pose a resolution to remove Mooky, Nisan and all the directors we wanted to. Because it would be an extraordinary proposal, Mooky and Co would need 75% to stay in, if we held close to 25%, we would have enough to vote them out.

Unfortunately if we start that now, Mooky will rush to finish this process and put the company into admin so he can preserve his £35m. It’s a shame none of us thought about this sooner. You live and you learn, I have lost a lot of money in CINE, but you can only dust yourself off and move forward :)

@poorinvester - good evening. In my last paragraph, I meant to say I wouldn’t be surprised. Autocorrect error.

Something that never made sense to me was the fact that the restructuring was taking place in the USA. Why? CINE is a UK listed company.

How does it make sense that a company’s equity is listed in the UK, and then you commence restructuring in a different country, decide that you’re going to zero-out the equity in a different country, and hand over the whole business (once again, that is headquartered and listed in the UK).

At the very maximum, the only thing that should have been possible in the USA is that the USA operations of CINE get restructured only. UK and RoW should have been intangible to the US restructuring process imo.

I feel like shareholders have been duped big time.

The question we should really be asking is how much Mooky’s and executive’s pay was this past financial year. Note that we have received no financial results or anything of the sort when we expected, we should have annual results back in March/April. CINE have a legal obligation to publish those results as they’re still trading on the open market, how often and whether they have breached it is not known to me.

Therein you would find the executive’s compensation details. Last time, we found that Mooky and other executives had received 100% bonus and it was a point of surprise on this board at the time. What did they do to deserve that bonus? I wonder what it was this time, we have no clue as they haven’t published it.

Would be surprised if they paid themselves another hefty bonus this year, in addition to the huge exit payout they’ll get.

Also worth noting that although it might not look like the sample site is doing a huge contribution, the sample site orders will carry a lower probability of a return due to the introduction of the returns fee. The returns fee will also cover a good chunk of the returns cost to ASC.

So even though the sample site might not seem to be doing huge and vast numbers, it is likely the case that the economics of the orders placed there are much more favourable and cost-effective to ASC than the conventional orders.