looking for 10p a share?2 Feb 2019 05:41
honestly....too tired to care to clarify the last line.
let me try again.
Although the form of the deleveraging plan remains to be finalised, it is likely to involve the conversion of a substantial proportion of the Group's external borrowings into new equity, an element of which may be sold to existing shareholders and potentially other investors. If implemented in this form, the deleveraging plan could result in material dilution for current Interserve shareholders.
I think in 2008 market crash perspectives when the debt was around 50million.....how did they get to here!
however.
"Although the form of the deleveraging plan remains to be finalised"
we dont know exactly but we have a good idea.
"it is likely to involve the conversion of a substantial proportion of the Group's external borrowings into new equity"
the money we borrowed and cant pay and we are going to have to finance by giving them some of the company and/or selling more shares. until our debt meets the auditors guidelines.
"an element of which may be sold to existing shareholders and potentially other investors."
if we cant get all the money we need by giving shares away to clear the debt we will offer shares to the shareholders to buy more to clear the debt (perhaps even offered at 10pps to existing shareholders).
if they dont cough up enough for what we want we will issue more to anyone until the amount we need is there.
"If implemented in this form, the deleveraging plan could result in material dilution for current Interserve shareholders."
lets say you used to own 1/100th of interserve - after their plan yo now own 1/1000th if you just sit there and dont buy more when the 10p offer (or even 5 p) comes along at a discount!
perhaps being a shareholder is one thing but being a bondholder and not making a profit another. you wouldn't get 10% discount over the sp to get out of it can bet that!
that's my rough breakdown on that.
I am right - I like to be.
am I wrong - probably a good chance.
ps this is all utter rubbish apart from the fact you might start with more than you finished.
this is the important point to take in.
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