The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I live abroad so i'm not gonna attend although i look forward to reading the feedback here on the board.
Thanks in advance to anyone that is going and willing to report back.
@ Hexam you are right about the lease intrests. i cant think of a reason why its not present in jan23
Either they have a good reason and its disclosed; or we have the worlds most incompetent ppl @ the wheel at CFO level
I mean - how can you miss a 25 million post on a 10 million loss.
Did we get 1 month relief? You'ld think they parade with a saving like that
little over 110m in Intrests and another 110m+ in "other expenses"
Would love some details there.
it is pointless to think or speculate whether they're "cooking" the books in any kind.
Cineworld is in a period where non-cash items and usual accounting tricks are worthless.
Cash doesnt lie. If they can start making actual cash flow while maintaining the same level of working capital, they'll get some credibility about their future prospects.
Nothing else will make any impression
Personally, i couldnt care less what the SP does, if anything ild prefer it to stay tanked so im not tempted to sell at loss and then when the ultimate save comes; regret it.
Lets see if we get approval, and that we can assume approval is linked to actual better performance, seen by the judge.
We need profitable months and i cant wait get insight in every month from last year up untill the final verdict.
Thanks for sharing this.
Lets see (and hope) for approval
other than those 2 words - we dont really have a lot of context do we?
Given that the hearing was dec 2022 - its wierd no other info/details regarding this have surfaced.
Not that i wanna sprinkle hope - but look at point 50 and 51. Its the Court that has final say on the matter.
http://arklatexlaw.com/practice-areas/bankruptcy/chapter-11-bankruptcy-reorganization-frequently-asked-questions/
Yeah it seems Hertz posted a plan with no Equity recovery around March 2021
Source: https://seekingalpha.com/article/4410692-hertz-just-filed-ch-11-reorganization-plan-which-will-wipe-out-shareholders
And then ultimately they found one that didnt (completely) wipe out shareholder around May 2021
https://www.marketwatch.com/story/bankrupt-hertz-shares-soar-62-on-news-of-deal-to-exit-chapter-11-that-will-benefit-shareholders-11620845287
We can only pray for something similar as this. I dont have the time to fully research the Hertz case or to start looking for similarities.
Anyone with more info on the matter is welcome to share his thoughts
@Miko - no one couldve predicted covid and Acquisitions are almost always back by a good portion of debt.
i bought my own company with 80% financing in 2019 Nov. With Covid hitting and closing our business (literally months after takeover) for 9 months, we did get loanrelief for said 9 months. Without it, anyone and everyone would default - you cant pay **** if 0 comes in.
which is why i find it to surprising that cinemas are not granted bigger relief untill recovery; at the basis the operational business is profitmaking...
i remember someone recently posting the same judge had a similar case where he left 4% for the holders. Would love to get more info on that
Is there anyone here with knowledge of previous d4e c11 cases where the former holders did get a (albeit) small fraction of the newco?
Could you post em here; thanks in advance
good point - but why would they feel pressure to settle now - before it goes bust - for something payable long after said bust-going thou?
@ Retail - although i would appreciate nice move towards cineplex - are we sure that any deal struc now would not just be worthless in the face of true c11 ?
I dont think anything can be sorted now in that regards - unless maybe with court approval
Money is tight; i doubt theyre allowed to spray around a fraction of the claim
I'm really failing to see the practical side; for the banks; in seizing control of the company, if theyre not planning to immediatly sell it for parts and take huge losses.
If they seize it; Cineworld as a business is still the same, except that the banks now have x billion writeoff on their loans, got shares worth zip and have no more intrest income from this.
So in order to recup their money - theyre faced with EXACTLY the same challenge as already in place - turning this MF around into something profitable.
So again - if this were not something profitable of worth having - why not just keep financing it and be done with it? rather than owning it and taking all the risk.
i really wonder how the debate would go in that court room when cine shows reasonable numbers for the last months and those to come to argue against scepticism of lenders
Really Curious as to how far every party in that room will be able to go...
Bulls - in all honestly - considering the lowball-offers and debtors - we're bleeding bodies in a sharktank
All our hope lies in convincing the judge that the future will get better so he can fend of the sharks; good numbers will help but this is a long game. Cines performance in terms of visitors is on par with the competitors and theyre all saying 2024 will only be on par with 2019 although spending per customer is higher.
if it were up to the sharks; weld already be sharkpoop
how can that be?
debtors are scheduled for may
last offers and auction in april
And then the judge makes his call
im not familiar with other c11 cases but
1) i also noticed this and have my questions but (2) i may well be very likely that legally they're just covering their ass to avoid being sued for misleading shareholders - ie - they warned us enough of every worst case scenario
yould have to investigate other c11 cases and their publications to see whether they report the same
to avoid confusion - my original post had phrases removed , here with highlights (CAPS)
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Pay attention to the lingo here:
BASED ON THE PROPOSALS RECEIVED TO DATE, it is not expected that any sale transaction will provide any recovery for the holders of the Company's equity interests.
&
in light of the level of existing debt that is expected to be released under any Plan, the Company does not believe that there will be sufficient creditor support for a Plan that contemplates any recovery for equity interests, and it is therefore not expected AT THIS TIME that any Plan will provide any recovery for holders of Cineworld's existing equity interests.
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