Member Info for shamI89

Sidara does not have to start any buisness from scratch, it is already working in this sector.In fact some divisions overlap.If financial press is to be believed then they came back this time as they see some synergies.As things stand they will need to pay off lenders first and would need to inject some money into buisness to turn things around.Or alternatively they can wait for company to sell divisions they want without taking on any debt.Whichone would they go for?

Textbook example of trying to "p&d" a ftse share and market has taken them to cleaners.As far as this company is concerned, current circumstances have put more pressure on finaces and that is not an ideal situation to be in.Sidara can walk away and wait, this company cant.Refinancing would wipeout equity holders here I am afraid.

let see if sidara decides to walk away, market has been trumped and price of oil can fall further.that has put more strain on balance shee****anwhile bondholders would be worried about debt and negative cash-flow!

Cheers for that, I will keep you updated once they get back to me!

Hahahaha tell FCA that I am free tomorrow and Monday so they can contact me anytime.For God's sake stop telling porkies, 300 bid, 450 million ebidta and what is going to be next?

To cut the long story short company has not made profit and loss is 150-200 million.But that is not end of it in very same update company has stated that it has witnessed a week Q4 and next year cash guidance is excluding asset disposals.Assuming that Trump manages to disrupt global trade balance for another year or so, this year will be really bad and there goes your ebidta.If Market really believed in these numbers shareprice would be a lot higher than 26 and bondholders wont be negotiating about "refinancing".

Hahahaha do you really understand accounts though or you just cherry pick some figures to fit your agenda.

Where did you get that "450 millions ebidta" from last time I checked it was negative cash flow.And how can you trust management on any forecasts given how things have turned out?

Do let me know if you need more details and I will happily provide them.

That Sidara did not walk away due to "macros" last time.I do think they spotted something which they did not like and walked away.Right now they sensed financial instability and put in a cheeky offer.If they walked away last time due to "macros" then why would they comeback when Donald trump is going into full blown trade war against whole world.

May have played a part in rejecting Sidara offer too company has been around for some time and good will value is not being recognised at the mintue.Post refinamcing there can be an investment case here before that it is a massive risk.

Share-price and fundamentals.There is no way they will pay 500 millions for this company and take on 1.2 billions debt in this environment.They are definitely interested in some divisions but given things are going they might be able to pick them up without adding debt.

Shareprice is going the way I predicted.Let them announce that Sidara has walked away and see where Shareprice goes!

Let this company carry on without refinancing as one more mishap and they would be worried to get their money back.I think this company needs to raise atleast 200 millions if not more.

Things that icecool would say.

How can you say resructuring is standard carporate action as that kind of money they need would wipe out existing equity holders.

They walk away equity is worthless at this point.

@Jamesoxford that was a different scenario, you can value a company based on earnings, debt,assets and goodwill.But you cant value a company when you dont have any data.This is what has happened here, market does not trust management, so do lenders.

Sidara wont be paying 80 per share as some people in here are suggesting.They have to pay shareholders as well as lenders so that is 600 millions plus 1.2 billions debt for a loss-making company.Thst is out of question

Coldspy if they are talking to lenders about "refinancing" and are in breach of convenants than there has to be something serious.At 250 millions it would have taken this company about 4.2 years to clear this debt, right now you dont have any data.Lenders have a right to worry about debt as another c up and they will be chasing company for money.Sidara spotted this and made a move.