Member Info for shamI89

I am pretty sure that 90% of you wont be around before suspension.However equity wipe-out is on the cards.Company is not making any money, it has to pay 1.1 billion to lenders, plus administration costs and is looking to sell its assets.Whatever way you look at it company needs to raise at least 250-300 million and at this level,it would wipe out existing shareholders.There is no way lenders would let these guys carry on without raising that money.Audited accounts would clarify situation to some extent.

"What does negative cash inflow mesns" surely it means no Cash is coming into company and company is not profitable.Ebidta means nothing if company is not profitable.Seocndly if you bother to read last update company states that it is looking at disposals to raise some cash and figures given by company excludes them assets.Thirdly if a company is not profitable how the hell it is going to pay off that debt next year and what would lenders do if they dont get paid.

It looks like quite a few people have taken big positions and are panicking now.Yesterday some share guru opined that market does not need to worry about debt as it is insecured.

Lets see if Sidara goes ahead with a bid.It would be pointless holding through suspension as most shareholders would not want to hold through suspension given looming refinancing Talks.

"450 million ebidta" where did you get that from as it is negative "cash flow" how can you say people dont need to be worried about debt when company has been talking to lenders about refinancing for sometimes and it already has breached convenants.As I have said icecool you cant bs your way out of this.This company has 1.1 billion net debt,is loss making,has already breached debt convenants and is trying to sell assets to cover administration.costs but people need to calm down.Equity only has some value if Sidara makes an offer otherwise.....

They still need to be paid and that is what market is worried about.

I dont think they are interested in whole group.They are interested in few divisions and rest of group was to be sold to recoup money.Problem is this company is in right mess it needs to restructure debt, it is selling off debts to cover administration costs and it also need to inject some money into buisness.If all these things were not enough we have a global trade war.We have three scenarios here, they walk away and let company sort this mess out and come back at a later stage, they can take a gamble and put in a low ball offer and see if they can turn things around or they can wait for companies to put divisions for sale and grab them.In this environment I dont see them putting in a bid.

Hahahaha thought you wont reply to me icecool.I like your anology that if debt is not secured they dont have to pay.What is next, they will tell lenders to p off and that is "debt" sorted.

Hahahaha longfell nothing being said here wont make a difference, many of you have been throwing all sorts of numbers but share price is not moving.That should tell you that retail money cant move this stuff.But I do think speculative money has moved on to something different.

Bid if they walk away then equitu has no value.Market is waiting for them to make a decision.

Macro are not looking good and I dont think buybacks can absorb these sells if things get messy.On my watchlist but would be watching it closely.

Hahaha they wont lend that sort of money without any security.But then you are desperate so will say anyyhing.

Lenders would need to approve this deal first before shareholders.At this point lenders own the company.For arguments sake lets say total assets of company are worth about 1.1 billion and total debt is 1.1 billion then there is no value left for shareholders.If 6 months down the line BOD has managed to turn around buisness and now total assets are worth about 1.6 billions then equity would have .5 billion value.

Spot on Mumbo Jumbo, there is a risk that when company would come out of suspension sharehodlers would already be wiped out.Many people post that company is in good financial condition but why would it breach debt convennats if everything is fine and why would it want to sell assets to cover administration costs?

Lol I surely will come back but share price is not going anywhere until Sidara makes a move either way.

Situation here as current weakness of oil price has strengthened its position.Company will be forced to sell its assets plus raise money through refinancing.Why pay full money when you can buy it at lower prices?

Price of oil, this company is not in bad situation compared to other oilies but price of oil would still affect its finances.

There is no upward phase here,share price is being held in a tight range.Price of oil is dropping further.Shate price is going nowhere until we hear one way or another.

Rolls Royce was a different beast there but shareholders were heavily diluted in the rights issue.I know it because I took part in rights.Similar scenario is on display here as if anyone wants to invest then he might as well wait for refinancing and then it will be a turnaround play.

As I said I am waiting for Sidara to walk away and we will go from there.I cant see a way out of it.