Devex on ii13 Mar 2019 08:41
Some cracking posts yesterday/early today - topped off by a very good summary from Champion. I have to say I share the view that the whole thing revolves around the Hope veto on funding - and you can imagine the conversations involving the other directors. What is the point of seeking additional funding, or paying the interest off even in shares, if all that happens is another funding source is blocked. Hence the boil had to be lanced Interesting linked-in words about Durham Capital: "Durham Capital Corporation provides non-traditional sources of capital for public and private companies worldwide. Durham specializes in closing senior and subordinated debt financings in challenged industries or special situations where access to new capital may be constrained. Our philosophy is to improve liquidity and financial flexibility by offering larger loan sizes, fewer and less restrictive covenants and better overall structural flexibility than may be obtained from other financing sources. Durham’s financings are typically structured as revolving and/or term debt facilities with a term of 3 years or more, generally without equity kickers or restrictions on use of proceeds. Using a customized approach, Durham has the reach to execute transactions ranging from $25 million to over $500 million. Established in 1985 and headquartered in New York City, Durham Capital represents an important source of transactions for major money center banks, pension funds, insurance companies, money management firms and finance companies. Our longstanding industry relationships, experience and structuring flexibility enable us to close on the most challenging financing transactions in any economic climate." I know the Nomad of the time saw the Term Sheet and recognised the name - and from the above they clearly fit this situation. They are most likely an intermediary to probably private investors and hedge funds, and apparently AIM companies have used them from time to time. However all this was back in November and things may have moved on. I personally wouldn’t be at all surprised if the situation has progressed much further - and is more complex than just a single source financing deal. I wouldn’t be at all surprised if the solution involves a JV of some sort - and still believe BH and BP will be very much linked to this Finally Dunknweev makes a very telling point. FRR had torrid finances through much of 2017/8 but have not raised new finance since February 2018… They still have available share capital of 1.5 billion shares (even if not tradeable this would allow a partner to own around 10% of the company). They also have very high vendor debt. Yet they are funding a very expensive legal action. I suspect a combination of better income flows, directors guarantees and critically some incredibly supportive vendors. Vendors who most likely will end up being a very important part of our future. I would not be at all surprised if we never see another court write up - the next n
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