Member Info for shamI89

Tell this to company, company must have gone through every possible scenario 100 times before accepting this offer.It wont make any money during this year and total loss is 150 million, not an ideal situation when you have to pay 1.1 billion debt to pay.Total cash on 30 June was 150 million out of which 45 million was restricted.

Alternatively shareholders will need to stump up this 450 million and that would wipe out existing shareholders.Then it will be a turn-around play where shareholders's value would be unlocked through paying off debt.

Icecool, company needs money and that 450 million would be needed for administration costs and refinancing.In my opinion company needed 600 million but I guess 140 million sale has halped a little bit.If company did not need this money there was no way institutional investors would have accepted this offer.I dont think you understand accounts!

I am talking about lenders,waivers are place until 30, so ideally Sidara will inject some money to stop them from taking any action.!

Is still doubtful about offer, accounts was going to take some time to finish, you have waivers in place until 30.Ideally I would see Sidara injecting some cash.

I dont know what to say Luca, did this company consult you when it was in talks with Sidara?

Luca you have to be extremely stupid to believe that, the moment company defaults,administrators are appointed and they deal with everything.When I was saying that company needed money you kept on about your "experience" in industry and how you always got paid by wood group.They have work and may be loads of work but that does not count if they cant turn a profit.It is like I am talking to a brick-wall.

Bid and I was trying to tell people that.But quite a few attacked me thinking that debt was not "secured" so there is nothing lenders can do.Company tells Sidara to "jog on" and lenders would take over and Sidara will have to deal with lenders then.35 is better than 0!

You have to be really naive to believe that lenders would refinancing without getting anything in return.Quite a few newspapers reported that Sidara was interested as few divisions overlap and they can create some synergies.A loss-making devision wont fetch much in this market and if very same division can be turned out it will be worth something.Sidara has money,time and management to implement them changes.

I am afraid, if they opposed this they will be asked to put in 450 million and that would be like throwing after good money after bad.If company fails to turn itself around then they will lose the lot and that is not ideal scenario.35 is still better than "0".Whole upside scenario was based on unlocking intangible value and then selling it off and that was going to take atleast 2 years.

Oh dear Coldspy is having another boozy afternoon.I dont know who I am last week I was supposed to be working for Sidara,a week before I was a "paid deramper" and this week coldspy has hinted that I am part of "boiler room crew".

Oh dear... @Valueseeker before you start sprouting bs go through accounts and then see what " net debt" I am talking about.

If an offer is rejected what other options BOD have? They have to pay 1.1 billion debt to pay next year plus administration costs

I did say whenever you see words like "refinancing" and "strategic options" it is time to run for hills.That scenario does not tend to bode well for shareholders.....But then I was a shorter and we had some people who have been in "industry" for 30 years so they knew better.I did say that members of bod would keep their jobs and it will be buisness as usual but shareholders would be wiped out.I can see major shareholders putting up a fight but I have not seen that working either.

@Monkeyjock most assets are intangible, you cant sell them to raise cash in this market,either you dont understand what intsngible and good-will assets are or you are trying to ignore them.

It is always hard to value intangible and good-will assets, worst thing is these assets cant be sold raise money.Sidara must have seen some value in these as it was willing to pay big money for these last year.Things have changed as relaized that company is in financial mess and decided to put in a low ball offer.1.8 billion is not bad money given how things are!

Good to see you icecool, lenders have a part to play in this deal.I was trying to work out cash and turns out company had 150 million on 30 June.It sold athos energy for 140 million not so long ago.Total administration costs are 250-300 million plus lenders would want to see atleast 250-300 million before agreeing to any financing.I looked at assets and most of these assets were intangible and good will assets.Company believed these assets were worth about 2.8 billion.Problem with intangible assets is it is really hard to put a value on them,they can be over-valued or undervalued.Sidara has all bases covered!

Luca, you need to go through accountd and quarterly statements, company was meant to clear off debt this year through its cash-flow but what has happened afterwards is a different story.If major shareholders want to inject £450 million they will want most of equity which can wipe out existing shareholders.They were probably aware of this situation right from start.

Most important thing is can this management be trusted.I do think Sidara has it really realky cheap but they have advantage of being in same industry and can create some synergies.

No they will pay 300 as you said😀