Member Info for parkside13

Surely to goodness it's better selling some assets if they don't have all the cash? They seem obsessed with MWs, a result of their idiotic LTIP. That's why I worry, that and poor non execs.

Yup agree. My chap says that execs and Board are poor at this sort of thing, chairman esp so and so I really hope they have good advisors.

I agree it'd be very odd for them to accept a premium. GIC is very hard nosed and won't do a bad deal. I'm hoping there will be a cash or partial cash solution that'll ameliorate the dilution. But a big premium? I doubt that.

Thought it might hold up rather better but guess it'll drift until news is out. Hey ho.

Rocket who knows where it goes to until the deal is announced. It's pointless speculating. And a tiny bit tedious!

Not sure it'll go much higher until the announcement. Possible max dilution price - allowing for bit of latitude from GEF - is probably 80p odd and upside much higher potentially. But you've got to ascribe "doing a daft deal" discount factor and so around here is probably right for now.

Meaningless price target until we know what deal looks like. Occurs to me the rise in the shares might hasten a deal.

I wonder what they are doing at the sub level? Bond or shares and cash? Hope it is not another stupid quasi equity convertible or something like that. Hmm.

Well it's the RNS they should have put out weeks ago. Result, the share price starts going the way it needs to go as the higher it goes, the less dilution, the higher it goes. But no real news and we will have to see what they can negotiate.

Yes there are a lot of lunatics out there and frankly the existing structures are not the best. Very high cost and potentially hideous dilution - as we know! But on the other side of the coin engineers are essential for putting in decent wind projects whilst being generally terrible at critiquing quasi equity structures!!

I'd hope in the meantime that we might get some news around the loan(s) restructuring. They might be being all Indian about it and not overly obsessing, but I'm aware there is some pressure from larger shareholders to resolve the issue. .

Well a bit perkier today. Still rather a long way to go to start registering less of a loss. Still further to go after that to start registering a profit. Well at least its going the right way pro tem.

Could be in that the last results were 30th March too.

The GIC stake would appear to be more passive if anything than the GEF Fund which is the one that winds up fairly soon. I've checked out the uses of the $ bond and it doesn't appear to have any restrictions although you would suppose they have spent the bulk of it by now - better LTIP value!! But HD's numbers are correct. So I think the math is right but the lingering concern here is the propensity of the management to do a dumb deal "solve" this.

I should add HD that your sleuthing is extremely helpful. Thank you!

Disappointing if there is no right to put in cash but I think that is the nub of the argument which is both funds wont want to end up holding a huge slug of some illiquid AIM stock when they might be able to take some shares and cash. One of the funds - I cant remember which one - liquidates fairly soon which compounds the issue for them. So I guess from a spreadsheet perspective this looks quite nicely poised but I worry about these guys' ability to do the right thing. I think the loans were flawed and badly constructed at the outset and I worry that the non execs don't really understand what is going on and will be led by a management team clearly focussed on MW in the ground rather than returns to shareholders. I remind that their LTIPs are based on MW installed not eps or roe or share price performance. That is a daft way to incentivise and displays the naivety of the non execs to have allowed this to happen. Nonetheless, there is a possibility that they come up with an overarching financing solution that doesn't dilute or more likely doesn't dilute as much as the market fears. Guess the way I look at it is the downside is probably around 60-70p and the upside rather higher. On balance the shares look cheap. But I've been wrong many many times before and will be wrong again!

They certainly had a decent slug of cash although how much is restricted in the (presumably) SPVs and how much is free is anyone's guess! They are generating cash so they might also issue a bond to repay. Anything but equity!!

Presumably both would rather settle in cash and so the easiest way to avoid dilution is to repay and I guess that means asset sales. I'd certainly rather they did this than dilute. The management own 35% of this so I hope they are focussed on this although they have historically been MW obsessed.

Possibly. I'll do the math tomorrow at 29.9% and cash.

Used to be fund manager so can still get reports if i need them. It's a couple of weeks old.