Member Info for oldpabear

Romaron

To answer your question I would quote from a research note 2 years old....

"It should be noted that geostationary orbital slots are limited, and are registered and overseen by the International Telecommunications Union (ITU), which allows operators rights in perpetuity once a slot and spectrum has been allocated. Providing the slot is used, the maintained register provides significant frequency protection. Artemis provided Avanti with its third orbital position at 21.5oE, adding to HYLAS 1 at 33.5oW and HYLAS 2 at 31.0oE. Avanti must place a satellite in that slot within three years of its deorbiting to maintain its rights. Several satellites can be co-located on orbital slots by the same company if frequencies do not interfere. This gives Avanti the potential to develop its network in the long term.

These slots have a value, as they can effectively be traded. Intelsat, the largest global satellite company based in the US, includes them on its balance sheets as a non-depreciating intangible asset at around $60m per slot. This implies an unrecognised asset value for Avanti of $180m."

I think people are confused - Solus would have taken up the open offer if there was a profit. They cannot make a deliberate loss for their underlying clients (try TCF & equivalents) - therefore they would not be allowed to participate in the open offer when the price was above the market. The open offer was only for the original holders (pre D4E) therefore I dont understand why people seem to think Solus would be in for more. AVN will need to raise the additional funds in the open market!! This should be possible now that debt is reduced and the company has more book & asset value. Just trying to help understanding.....

Gents, All this information (except the open offer) was in the documentation presented to Bond holders last month. It was all in the public domain. In essence this is the mopping up of the restructure.

MTB - you're being a bit naughty with your use of statistics... AVN's real market cap at present is approx �275mil This is the current cap of 20.6 which is for 7.5% of the restructure value. The market has already factored in the restructure. And yes, I agree there will be sizeable debt - it's up to the new management to resolve the income conundrum. The positive message is that they are experts in the African market. Recent news of developments in Nigeria are certainly positive. I don't have 'rose tinted' glasses - but I'd like to think I'm 'informed' - certainlt I have read the documentation from the restructure which clearly explained the debt holders had no option if they wanted a reasonable return. They have been pulling the strings for the past year and that's why there is a new management team with real focus. Time will tell......

Sorry guys, but you've got it wrong - this is a very high level description of where we are & how we got here I have a long position here - read the D4E documentation and you will see it's true. The real message is that the company can survive now - it's like a fresh start. But we are owned by the 3 hedge funds that provided the debt in the past. Some may say they paid a lot to take over the business!

The debt for equity swap is for the c $557m of outstanding 2023 Notes. These will convert into around 2bn (2,000m) of new 1p shares. The outstanding 2021 bondholders were asked to accept a reduction in the coupons paid, as well as an extension to the term and changes to covenants and restrictions. In aggregate, the package should reduce the annual interest burden from $128.7m to just $36.6m. The outstanding debt after the restructure will be $423.3m down from $980.3m.

I find it amazing that people who post continuous positive comments about this company do not understand what is happening - there has been so much information published. Hopefully in plain English the RNS means: The bondholders have voted in favour of the D4E swap for the main debt tranche. The other tranche has accepted the reduction of interest rate on the bonds. In return the bond holders get a small interim payment. The main point is that providing the equity holders now accept the restructure (TINA - there is no alternative) - the company has a chance of surviving. Providing Hylas4 launch is successful and income can be generated, then AVN can become a normal company again.

SS - yes you're incorrect.... A debt for equity swap is being proposed for the c $557m of outstanding 2023 Notes. These will convert into around 2bn (2,000m) of new 1p shares. Essentially, the nominal value is being converted to equity at c 21p a share, although the value being accepted is more like c 9p per share. In effect, the bondholders appear to be accepting the potential gearing of equity stakes over the greater security of interest payments, which threaten maintenance of the operations, hugely increasing risk. The $81m annual interest savings will be retained for the benefit of the company and its owners, including equity holders. In addition, the outstanding 2021 bondholders are being asked to accept a reduction in the coupons paid, as well as an extension to the term and changes to covenants and restrictions. In aggregate, the package should reduce the annual interest burden from $128.7m to just $36.6m. The outstanding debt after the restructure will be $423.3m down from $980.3m.

Cassius - yes that would be correct, this was also identified by Crobe many moons ago when he was posting

Cassius - no it was this from last week.... http://www.janes.com/article/75512/indonesia-s-military-satellite-project-uncertain-after-missed-payment

I have read this article and am confused... Nobody seems to have interpreted it the way that I read it. The article says that the Ind gov has failed to make payment to an interim supplier - to my mind that interim supplier sounds like Avanti who was contracted to hold the slot using Artemis. I vaguely remember last year reading that this was the end of life strategy for Artemis. Does anyone read this in the same way? a missed payment becomes bad debt and would be worrying to avn in it's present state.