Member Info for Redheadedrager

on the dead cat bounce.

this is a valid as a norwegian blue.

will be worth 0p by the end of july.

what a **** show

. . . like a cat hitting the pavement from the 9th floor

Very sad to see when a company that can deliver gets f*cked by p!ss poor financial management and carved up by vultures

Makes you lose faith in capitalism for the masses

The only people who win are the city boys

I should have listened to PaulCurtis. 😔

Sold on 25/4 at 24p (or there abouts) after chasing this down from 80p.

I know that £10k is not a lot to some, but it is a huge amount for me.

I guess dinner is a large slice of humble pie.

Buy, hold, sell. Investing is - unless you’re on the inside - a mugs game.

FFS

. . . no money gets out

Bonds taking a bath too . . .

What a fustercluck . . .

Petrofacked 🙄

FFS

Would love to see that Kepler report. Seen the analyst who wrote it. Looks about 12. . . .

@PaulCurtis

All debt being ranked “Pari passu” is in the event of the company failing.

Not when debt is restructured.

That is quite a basic error you’ve made.

@PaulCurtis

It makes sense that you talk down the position - as you hold debt and want more of the cake if a D4E occurs - trashing PFC with the intent to scare others into selling and drive the SP down enables that.

The RCF has not been mentioned. That is not debt with a charge on the assets so will not be included in any potential D4E swap.

IMHO there will be some D4E but PFC will emerge a much financially stronger company fighting fit for the transition to green energy over the next 10-15 years.

Won’t be an immediate bounce back but I think that 20p will be a reasonable base to build from over next 2-3 years.

Shorts are closing out. I think that the bottom has been called.

But by all means Paul, continue to trash talk PFC.

@Badvoc - it’s not a debt issue per se - they have no issues servicing the debt. It’s a short term cash flow issue to stump up for the guarantees (that have been dramatically increased post winning the contracts - some would argue a little unfairly).

Different issues. Shareholders will not be wiped out. Equity will be diluted. But not wiped out.

£600m bonds aren’t due for repayment of capital until 15/11/2026

The £58.5m interest is due 15/5 - no indication that PFC can’t pay that.

Covenants are all good.

Issue is payment of contract guarantees, as understandably clients want / need more cover in these uncertain times. . . It’s only a pity that PFC have been so darned successful in winning huge contracts eh?

Hence the need to restructure the debt to release more cash to cover these guarantees - victims of our own success.

Unfortunately, the feckless greedy bond holders have seen this as an opportunity to get more of the cake . . . Why have £600m of binds that may not return pr, when you could get 80%+ of a company that’s set to make say 6-8% on£8bn (plus whatever else PFC win going forwards). Makes simple economic sense. It’s a logical outcome.

Sadly D4E will happen. Hopefully existing shareholders will get opportunity to participate on beneficial terms.

Then hold for 3-5 years and we should be good.

Only hope to avoid an extreme dilution is asset sales, strategic investor or a massive turnaround in cash generation from existent contracts.

Just a bit of hard realism. Cheers all. Red

@PC - frankly you’re bringing a new definition to desperation.

There will be some D4E swap, but BHs will not get par. Most likely somewhere between 30-50%. That’s what the market is telling you, being priced at 28% . . .

There will be some capital from asset sales, some new strategic investment and possibly some positive cash flow from trading.

All your scaremongering about PFC losing booked business is baloney . . . If that had happened then they’re obligated to update the market per LSE yellow book rules . . .

This is not some tinpot AIM listed flaky £2m MCAP minnow we’re talking about. The back book alone has value in itself . . . .

Anyhow, enjoy your Sunday in the beautiful sunshine 👍

@PaulCurtis

Well, well, well. Guess who’s back, back again . . . I told you that the equity will outperform the debt.

Equity down 20%, debt down almost 30%.

It’s like the market doesn’t believe D4E will actually happen in any meaningful scale . . .

Hmmm . . .

@Slift - this is old news.

Why are recycling this stuff? Everyone knows that credit rating agencies have downgraded PFC bonds - that much is evident in the price.

Wondering if you have an agenda?

@PaulCurtis

Did you even read the RNS?

“ . . . Active discussions are progressing with Petrofac’s stakeholders including its lending group . . .” 🙄

@PaulCurtis - the RCF will not need to be paid off. It will roll over to another arrangement . . . 🙄

QQ - can you show me exactly where in the Bonds contracts and in the RCF contracts it states the exact assets that are held as collateral by the bank and bond holders against PFC default? Ta muchly!

. . . unless Paul, the institutional bond holder know something that you don’t and are dumping them on unsuspecting retail holder rubes like you?

. . . because exporting scrap is directly akin to running a global petro-services company . . . this is an extension of an existing contract not low balling a new client to “get a foot in the door” . . . try reading the RNS properly it even states it in the headline . . . Muppet 🙄

. . . been read by so many, saying so little with so many words . . .

Challenges even those of UKOG for verbosity and communicating the square root of f*ck all.

Truly a “nothing to see here” update.

What a waste of money.