The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Also who would wanna make a bid, as long as Cineplex-case isnt sorted?
Source @ Woodstock?
Stanley - you can already study the numbers here https://www.cineworldplc.com/en/investors/debtor-in-possession
i'm not expecting too much from 22nd other than a response from the ppl who missed the fact that all revelant info is out there.
TBH - nobody cares about 22nd sept anymore. Its all about Cineplex and nailing that second half
Andy, if you feel like there's incorrect information being spread, feel free to inform us properly.
I would recommend looking into the financials and making your own risk assessment.
Company is currently facing C11...
Safe bet would be to wait till after the reorganization
Risky bet would be believing theyll come out bigger and better and buying at 2p
But again, dont listen to anyone, do your own research, if your willing to spend money on the advice of a random internet dude you might aswell just wire it to me
@ Hexam, do you know any examples where it has happened? Do you have an idea on how much of the inital debt was swapped. it seems to hard to believe that ALL debt would be swapped. A company debt is just bad allocation of capital. so i would think cutting 2 or 3 might be most reasonable, ALL ASSUMPTION ON MY END, of course.
If that than gets offset to a reasonable valuation of lets say 5-8x operaitonal cashflow or adj. ebitda incl. lease. we may be facing a 40-60% of the value being swapped for debt. Which is something i would be able to live with
Debt is gonna be on the other side of that equation. D4E is gonna come down to (1) how low can we keep the debt swapped and (2) how high can we get our valuation.
Hence why i wanna make a guestimate on the debt so i can put my valuation against it and see where we might land in terms of dilution
I am wondering if any here has any thoughts on how much debt, POTENTIALLY, would/could be swapped for equity.
How has this gone in the past?
Looking at our current 5bn debt - would it be realistic to think they can settle to swap 2bn ?
Any insight on how much or what the possibilities are, are welcome.
Plex dropped cine from 45p, not 85p.
look at 13-15dec https://www.google.com/search?client=firefox-b-d&q=cineworld+stock
I also dont think we will get news on the appeals dates of 12 and 13 october.
How long did it take from the first hearing untill we got the news in december 2021?
@ Wolf - could you elaborate on "If the D4E cannot be agreed it's clear that there will be a wipeout."
Why would that be? cuz the loans remain outstanding then and company is forced into default again or?
Melon, i think what that means most of all is that management wants to cover their ass against shareholder-legal-claims.
They cannot guarantee anything so they do well to announce it properly
ASSES COVERED
@IAN - Do you have an overview of who our current lenders are (pre-DIP) with amounts and the new DIP lenders? Or where to find it?
@ Wolf, my bad, poor wording. it is indeed yet to be seen what will happen. i think if D4E happens, it will be because we have no other choice. Having mooky at the wheel (with his 20% stake) at least guarantees us that he will only conceed if its his only choice.
i have some hope if PLEX is favorable, we may be dealt another hand.
@ Jeff
on D4E - i have no experience in D4E so i cannot comment on it.
From a lenders perspective, I THINK, Ian makes a fair point in saying you need all lenders to be aboard, and this because of the priority of the lending (i dont think nr 3 in line can make a deal to get cash/reimbursement if nr 1 hasnt been paid). i do however also have no experience with this so cannot say conclusively if 1 lender could choose to swap his debt for equity, but it would seem illogical.
But its not because the d4e is blocked today, that i cannot occur in a later stage. I think it will all depend how well the next 6 months go.
I think every CW holder would hope this setup blocks a D4E, just untill we get passed the PLEX case, so that the lenders can get around the table again. But i think this is our BEST BEST Possible scenario.
IAN, whats your source for confirmation that they cant do D4E?
cant read full story
Cineplex award took the share down from 45p, check the dates (13-15dec 2021)
Yeah i would also be very intrested in knowing what the legal options are in this event?
International issues like this should be subject to some international court rather than 1 side having the hometeam advantage with significant upside to rule in favor of said home-party
@fintech i dont wanna ruin your parade but im not so sure a canadian court is gonna consider what US courts want.
Especially if the US opinion is not in favour of their own local company who faces the same difficulties
I cant help but wonder how unbiased this canadian court is in all of this. Hopefully justice will prevail