Member Info for nacho2

Long-term hold this for me. Gold or bust. Could go either way but its my biggest holding.

Ratings from customers are pretty good.

Don't compare to the likes of cheap Tesco ready meals but are good for likes of people who can't get out and don't have much fridge/freezer space.

Original private holders at original listing who sold some shares done well.

Too big too fast. Don't have any shares but if I did, I would keep them as this company might get back to basics again. They have a market. Just not an 80 mill market cap.

To me the upsides outweigh the downsides.

Still risky if government don't pass environmental plans but thats why its an aim stock.

If the lenders pull the funding the company could disappear before the fca even realise.

Hopefully thats the bad apple discarded and mcl can get back to what it does best. Not saying no room for improvement but is still a decent company.

gfclappah - be very careful with using debt to invest. At the very least spread it over 5 different, good shares at the very least. That being said, morses seems pretty stable for the sector its in.

mhgh45 you forgot about thungela res when it got spun out of a conglomerate for being dirty coal. Was in the 100's now in the 400's. No-one wants a cold home no matter how environmentally friendly they are.

I don't see mcl being like amigo in that traditionally mcl has been more face-to-face lending and hopefully more ethical.

I'm still not sure whether short-term loans are a good thing but there obviously is a market for them that credit unions don't cater for.

Good post MHGH.

Isn't just mcl that price has went lower in the short term. I should have sold all my shares 3 months ago, went on a world cruise then bought shares back with cash to spare.

Good time to invest atm just sucks to see long-term invests currently down. Hopefully come summer will be better.

Thanks hussartbr for the web link.

Its going to be interesting.

How cineplex can argue such a thing as an ordinary course of action during a one-off (?!) global pandemic is beyond me (unless they had it down on a risk assessment).

Don't see cineworld getting off the hook without some slap but seems the original court fine blew away in a hot air balloon.

Is issuing a fine that would effectively bankrupt a company common practice? Or is it more a try-your-luck pluck a figure out of the air and hope some of it sticks fine issued.

Motley full use freelance writers I assume, so I wouldn't use their recommendations, however, some articles do have good sources of info.

Mooky would have to relist on new york stock exchange to get more us retail investors

Uvton I would love wallstreetbets to annihilate the shorters of Cineworld. And then for Cine to do a ri off their increased mc to takeover cineplex and squash court proceedings and legal fees.

I have a holding in Cine but haven't averaged down yet.

Cine has a lot of debt but, like cineplex, rents or owns movie threaters that cannot easily be repurposed. Therefore cine going bust isn't attractive to the secured debt lenders. Amazon could easily afford to buy all cinema chains atm but haven't so no other interested parties.

Also ceo Mooky and his family own a lot of shares, so don't want to destroy shareholder value beyond repair.

Actually once the secured lenders got their slices, there probably would have been nothing left for cineplex shareholders, and deal wouldn't have gone through anyway.

The real caveat is that if Cineworld had gone ahead with the deal, they would most likely been forced into administration by their own lenders.

The only winners then would have been the shareholders of cineplex. And certainly not cineplex the company nor its partners and suppliers.

Read through court document and seems a bit biased for cineplex.

Cineplex in essense did everything it could to enable the aquisition to go through, at the expense of part two below to maintain its business and working relations. Their bank loan stayed pretty much level during the first half of 2020 (during a world pandemic.) Do the maths.

Cineworld at fault too for assuming cineplex would breach covenants.

Basically both companies had their own goals - cineworld were trying to survive and cineplex trying to get bought by cineworld at a good price.

The real winners are the lawyers in a case like this.

“121] I first look at the wording of the Operating Covenant. Cineworld’s interpretation ignores
the wording of that clause in its entirety. The covenant has two parts. Both parts apply and neither
is subordinate to the other. The first part requires Cineplex to “conduct its business in the Ordinary
Course and in accordance with Laws.” The second part requires Cineplex to “use commercially
reasonable efforts to maintain and preserve its and its Subsidiaries business organization, assets,
properties, employees, goodwill and business relationships with customers, suppliers, partners and
other Persons with which the Company or any of its Subsidiaries has material business relations.”
Cineworld focuses only on the first part, not the second.”

Yes ceo has taken on a lot of debt to fund regal purchase I accept that.

Cineplex made a loss of over 600 million last year and cineworld made a loss of 2.65B so not good at any cinemas.

My one question is:

Can cineworld do a hostile takeover of cineplex now and cancel fine?

I would put all my spare cash into it - Mooky and family have about a 30% share holding in the company.

Not Mookies fault covid came along.

He had no option but to not go ahead with buy-out.

I would assume it has to be a different judge otherwise its a farce.

Deep333 good post though I would think cine could appeal the size of the fine.

Plus if cine had went ahead with buyout of cineplex cine might not exist now as lenders would have maybe pulled funding first.

I don't see it being clear cut case, not if the appeal judge has a modicum of awareness that covid 19 totally altered the playing field.

Mmmm so a canadian judge orders cineworld to cough up nearly double its market cap to pay canadian cineplex a fine greater than cineplex's own market cap.

Reasoning is down to missed cost savings? Not many companies make cost savings greater than their market cap in a year.

Christmas pantomime eat your heart out

Original takeover was 1.6 billion dollars btw.

Once covid hit am sure cineplex went over agreed debt levels. In two yrs we will know just what the outcome is.

Cineplex shares up 13% with cine down 40% so obviously not many believe cineplex will be getting money anytime soon.

IF Mooky did decide on bankrupcy cineplex probably won't get a penny.

Judge seems to use the proviso that the decision to cancel takeover was premediated before June 2020 warrants the fine.

Poppy**** though maybe its all legal.