Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"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.
..in the mother of all courtroom bun fights. Hope MA takes them to the cleaners.
In this case Sports Direct and Debenhams. Thought I was seeing double. Now what would happen in the event of an offer in the form of shares.
Refinancing will happen. Too many people will loose too much if this goes into administration and at the heart of all this there is still a business just as good if not better than the competition. I put it likely but not definite that some form of CVA / landlord renegotiation will happen, this being the required condition for any further investment. I think it highly likely that some form of open offer or rights issue will follow, and at current prices I fully expect that to fully take these up will cost a multiple of any purchase at current prices. Finally I see a merger or take over by MA. On the assumption that all that comes to pass this will still be a risky investment given that the High Street's well publicised problems, however those trying to write off the company now are fooling no one but themselves. Sure the share price might still go lower, but it's the cost of refinancing people should be thinking about, not original outlay for the shares.
IMO MA won't risk loosing control now that he has it.
Imo the best that can be hoped for is a merger with SD on fair terms.