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Fully agree Simms45 ..
As a further thought, the final documentation (as per my earlier note) will likely be a ‘master’ agreement, and as such will need to show ALL of the required funds in place from the full consortium
Put simply, the bank/s won’t sign off on this with $20m of equity yet to be tied down!
This final piece of the jigsaw probably explains a wait for final credit approval
IMHO
Hi Cateham 7
My experience is confined to US, European & Australasian markets, so it might flow slightly differently in an African country… however..
Typically, there is a Master Finance Agreement (MFA) type document which is produced by the lawyers for the bank/s - this is distributed to lawyers for all consortium parties (equity & debt) who in turn mark up anything they are not happy with/want removing, or re-wording etc
Ultimately the banks control this process, and will accede to minor requests, but won’t agree to fundamental changes here - after all, they are putting in most of the money, and don’t typically enjoy an equity stake…. however everything is already agreed in principle at the get go, so this isn’t normally deal breaker territory whatsoever
Once there is a final, agreed document in place, there is normally a completion meeting (quite often over the phone if involving geographically separated parties) whereby the lawyers agree to settle and all documents in circulation are duly signed and returned (fax/email etc)
That triggers funding, albeit in this case the primary funding isn’t the debt.. it’s equity going in first
This position might vary slightly, but I suspect the basics are pretty similar
Timing wise, again not known re Africa, this circulation and arriving at something to sign off is a week to ten days..
All of that said, we are right now still awaiting final credit committee approval, which will be the catalyst for this at the front end - that’s what we need next
I’m just quite pleased that the main funding docs are already in Draft format, as this gives some solidity to what it likely to transpire…
Again, caveat is I haven’t worked in Africa, so can’t be certain
GLA
The standout bit for me is;
“already drafted proposed final funding package documentation”
Typically this is a piece of work undertaken by a panel law firm of/for the leading senior lender (bank syndicate)
It would be highly unusual for this work to have been done, if the funding was in any doubt. It’s detailed & expensive work..
All IMHO
Ditto… Con Doorman filtered (my first ever).. complete tool - lots of green boxes, worth it
More importantly, I have to agree with ajs - last RNS was excellent and the companies handling of the current situation is first class
It’s fair to say that security concerns will always be a constant in Ethiopia (for the foreseeable future) so this should not be seen as a massive surprise in that context..
Risk is always there - in all things, and to try and eliminate it is futile - you NEVER will
Risk needs to be understood and then MITIGATED that is how grown ups deal with Risk…
Let’s hope that the ‘consortium’ recognise this and act accordingly - otherwise nothing will EVER get done
Forrest
6 months ago our esteemed Exec Chairman advised that we narrowly missed getting this deal over the line by Dec 31 ‘22 and that the signing of final, definitive agreements was now imminent ..
We are now over 26 weeks down the line from this statement and have STILL not signed these documents - I have never known a deal to stay pregnant for this length of time… ever
I am not positive or negative, and will be jumping for joy when this finally gets done..
I am however appalled by the management of expectations over a very protracted timeframe here, and continue to scratch my head in wonder at how HAA fails to deliver on ANY timescale given, time after time after time….
there was a saturday morning a while back (2008) in the us (as the gfc became a ‘clear and present danger) when banks started to fail, when the senior people in the finance sector (jamie dimon etc) were brought into the treasury by hank paulson (ex goldman) for an “out of time” conversation..
lehman bros went to the wall the day before from memory
they had that morning to save the us banking industry and ‘cut to the chase’ about who would acquire/absorb what, and come out fighting on monday morning - they did just that
that is leadership and a true appreciation/understanding of what is capable when you simply don’t have the luxury of time
had there been more time, the scenario would have been more akin to what we are experiencing now with this shower of amateur ****….
take away the luxury of time and meaningful things happen quickly - a lesson badly needed here in kefi time, where chumps are procrastinating eternally and incessantly
sometimes you need to invoke the code of jfdi and get **** done
Up 17% in 5 days as a sustained trend
I’m latterly not the biggest fan here, albeit I am very heavily invested (for me) - it’s been emotional
I have no agenda on this board and do tend to ‘speak as I see’ … overly on occasion and NOT a fan of the waffling, over-promising Greek Spacehopper
Maybe, just maybe we’re about to countdown to lift off now …
GLA
wet season, dry season… the chairman said..
i have heard this****** every bloody year.. any decent business would have given this utterly useless chairman a short fused **** rocket back to the cheap seats he needs to sit in..
can we please have less fackin talk harry and some locked in, nailed on results…
Simms
I love your posts, mostly
I have been in & around credit committees since 1983 and have a very considerable understanding of how long (even the most challenging) submissions take to agree, or not
As a process It’s essentially a board ratifying information provided via valuation & due diligence (financial and asset/operational) delivered via an Underwriting Dept with associated recommendations - the board will have been privy to all milestone achievements through the above process
There are Conditions Precedent (CP’s) apparently satisfied a month or so ago in the case of Kefi.. and Conditions Subsequent (CS’s) which will be geared to covenants in the legals post sign off etc.. if breached the senior lenders have cause to exit
You KEEP (out of the best, albeit very ignorant) intentions, week after month stating “credit sign off soon” although you clearly have zero understanding of this process…
In reality - it’s taken FAR TOO LONG .. and that’s very bloody odd
Danners.. be kind - everyone arrives to ‘now’ differently
It’s irresistibly east to tell people you’ll never get to meet, on different continents to ‘ef off’ and sound all tough and robust
React less - think more (possibly)
Anyway, good luck with your investment
Never in human history has a man promised so much, talked it up so much.. yet delivered so very little
I would welcome a well priced trade buy for Kefi, because I’d get cashed up and never have to listen to the droning jam tomorrow idiot ever again..
In the words of the late David Bowie;
“Sometimes I feel the need to move on…”
Moving on from HAA would be a day for Champagne
Ajs
This was always going to be a massive lawyer-fest, with so many parties to the deal across Gov, Equity & Debt providers
You would hope that the senior lender lawyers are actually leading this, otherwise it will be an expensive and very protracted bun fight
It’s getting to a point where, even with all of the above accepted, there should be closure in the cross hairs … because it has been absolutely bloody ages in deal terms
It’s also totally useless for the other 86,398 seconds of the day..
We seriously need some proper progress being delivered here - I’m totally staggered that the banks are STILL thinking about signing this deal off, all this time later…. What is there left to consider???? It’s madness - valuations in, revised costings in, Gov reassurances in, final umbrella agreements signed… etc etc etc…. either do the bloody deal or FO… either way, make a sodding decision ffs……
C. US$2070 is the resistance Rob, I believe.. and when this turns to the level of support, we should see a rally up through US$2500 in a relatively short timeframe
TKGM is primarily Gold as we know
It’s just timing now and getting everything signed off across the syndicate imho