Member Info for SilverSpoons

When it comes to the city, the stock market is not just a part of the puzzle, it is the most essential part of the puzzle. Without it, only private companies can exist. Now the message being sent out here is that shareholders rights are worthless. MA had a 30% holding, yet he was powerless to stop a renegade board from driving the company into the hands of debt vulchures.

Other investers with big pockets will have taken note of this and will be watching with interest to see how little protection their majority holdings have, and calculating if they should start selling or put on hold any remotely risky investment strategies. Once disinvested these guys will put there money elsewhere, in safer juristictions like Germany or Singapore. They may very well leave London forever.

In summary, the FCA has no choice. As a minimum it has to start investigating soon. It needs to show these investors it will not tolerate any form of dereliction of duty by board members, and it needs to send out a loud and clear message that shareholders in the London stock market can rely upon it to uphold their rights.

Question. Is it possible to short a bond. I'm sure their must be some financial instrument that lets you do this. I also wouldn't be surprised if a few posters on here started pontificating the wonders of double digit yield paying debt with 100% gains on maturity. Come to think of it. What is the definition of junk bonds?

Very well put Jwood1. IMO if this gets to court a judge is going to see it the same way.

.. value of Debs the day it was pre packed. Was it more or less than minus the haircut that MAs offer was requiring of the bondholders?

It's called laying the ground on which to base your legal arguments. This case will take months, maybe years. Building the case, check all the relevant case law and precedents, testing evidence, all will take time. Then there's the FCA who could delay things with their own case. Given the animosity this will then probably require a lengthy trial. Of course costs will likely go to the winner, however MA might decide the risk of loosing and having to pay both sides costs does not warrant the possible gain times the chance of winning. That said, if this does go to court the press will be all over it and MA has never been shy of publicity.

. especially given the legal implications resulting from MAs stated intention to see the pre pack reversed. With regard to what I think MAs next move will be, given the complexity of the case I don't see anything happening soon, but I might be wrong.

"Buying a share gives you voting rights,"

Usually the case, but the Debenhams BoD did everything in their power to stop this. Ashley called a shareholder meeting and before he was allowed to have it the rushed the company into administration. And what about a shareholder vote on refinancing, no that never happened either. Basically shareholders were given f all say. As I say, cannon fodder to be slaughtered for the bondholders benefit. If you want an advertisement for a banana republic stock market then this is it. The regulator can sit back and do nothing, but if they do then it will only encourage more and more abuse and before you know it London's reputation will be in tatters.

As I say, I think the offer should have been accepted and hopefully the courts will agree. As such I fully support MA in his enthusiasm to leave no stone unturned

Correction: Tuesday's offer of 200million

...court and why he should win. In my opinion:
1. Friday's 200mil offer was completely reasonable for all parties, yet was rejected by the BoD, showing not only a disregard for shareholders but an outright opposition towards them. If MA was insuring the RI 100 percent then of course he was reasonable in requesting he be made CEO, and the given the discount the bonds were trading at the haircut was more than reasonable.
2. This sets an awfully example of lack of shareholder protection and should be used as a test case to illustrate to investors both here and abroad that buying shares in UK companies comes with certain rights and protections and should not be viewed as cannon fodder for bondholders to sacrifice at the first opportunity.

Go on Mike. Keep biting down harder.

.dirt to take these slimeballs to the cleaners. Maybe even something in it for those that lost out here.

..was a good one, but I think someone else must have promised them more. Fact is the high street retail market is shrinking fast. IMO Debenhams new owner will find it a money pit and I won't be surprised if it ceases to exist completely in a couple of years. Marks and John Lewis have a loyal customer base and also have groceries, both of which will help them, but imo a shrunken Debenhams will find the going very tough.

..is gambling plain and simple. This one had a chance because MA is such a big holder of shares, however it looks like he's been outmanoeuvred by the bond holders. No doubt he will not go down without launching a few court room salvos, but even if he wins these it won't change the outcome. On a broader note, Debenhams' fall has shown us once again that a shareholders raison d'être is to provide financial protection for bondholders and that smart money prefers bonds over shares.

25% chance of MA offer
25% chance of pre pack
50% chance of a rights issue conditional on a CVA being put in place that MA is happy to support.
At the end of the day the bond holders want 100p on the pound and MA wants Debs on the cheap. Both will eventually come to a compromise that gives both part of what they want.

Typo, Marlon

- Bill Paxton, Aliens
- Napolian, Moscow
- Captain Oates, Antarctica
- George Custor, Little Bighorn
- Malin Brando, On the Waterfront

Take your pick

Imo what should happen is an open offer at 1p underwritten by the bond holders at 50p on the pound, ie 50shares for every 1 pond debt. This would reflect both the current pricing of shares and bonds on the open market

Balls. A financial restructuring does not require creditor agreement. An open offer can occur without their consent.

They have been talking about a financial restructuring. Has a proposal been put to all shareholders to be voted on at any point? Now we are told that shareholders are likely to receive nothing. To say such happenings are unusual is an understatement. If such a thing comes to pass then it makes a complete mockery of board room rules governing shareholder representation and legal action will undoubtedly occur.