The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
RIP
Of most interest to me is the line about ESKN making a proposal to CGI. They state: "Esken will be submitting a proposal to CGI with a view to reaching a negotiated settlement of the claims and thus a lifting of the claimed acceleration and demand for early repayment."
So, CGI put a 16th Feb deadline in place for settlement, so I would expect the proposal from ESKN to be put to CGI either now or very shortly. Expect a further RNS this week or early next. This is on a knife edge, pretty much binary bet. Win big, lose big from this price.
Further to the announcement issued on 23 January 2024, Esken, the aviation group, announces that its wholly owned subsidiary London Southend Airport Company Limited ("LSA") has, in conjunction with its legal advisers, investigated the validity of the alleged breaches of the convertible loan agreement entered into between LSA and Carlyle Global Infrastructure Fund ("CGI").
LSA has concluded that there is no default or event of default which gives CGI a current right to accelerate the loan, make demand or take enforcement action pursuant to the convertible loan agreement. LSA has therefore disputed CGI's claimed acceleration and demand for early repayment. Esken fully supports LSA's position. As previously noted there have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations.
Notwithstanding Esken and LSA's robust position in relation to CGI's claimed acceleration and demand for early repayment, and in order to avoid costly litigation and unnecessary value destruction for all stakeholders (including CGI), Esken will be submitting a proposal to CGI with a view to reaching a negotiated settlement of the claims and thus a lifting of the claimed acceleration and demand for early repayment.
The uncertainty of the outcome of the above has led to progress on (i) the disposal of non-core assets; (ii) the potential £20 million funding facility from certain of Esken's larger Shareholders into Esken Aviation and (iii) the amendment and extension of the exchangeable bond, all as referred to in previous announcements, being disrupted significantly, with these transactions proceeding more slowly than anticipated and the terms for which may now be different than those which the Company was previously hoping to achieve. These actions were being taken to give the Group a funding horizon through to the end of 2025 in order to allow a managed sale process of LSA as it recovers. A successful sale of LSA would see CGI repaid as a priority and ahead of its maturity date.
The Company is monitoring the impact of such delays and assessing appropriate contingency planning, including exploring access to alternative funding to cover these delays. If the Group is unable to resolve the dispute with CGI and the Group is either unable to progress the transactions mentioned above or find alternative funding in the coming months, then this could have a material adverse impact on the Group.
Someone accumulating here
Chunky buying
+52%
After hours RNS imo, deal been done, CGI on board this will fly to the moon
Chunky buy.....21k is not punt money. Deal done and this will go ballistic.
Up she goes
LEAK...!!!
Under the radar, but the volume is indicating confidence at this level or a mini-leak
Decent buying
The anticipated dates and sequence of events relating to the Strategic Review are set out below:
Initial shareholder consultation period
29 January to 23 February 2024
Publication of outcome of the Strategic Review
mid-March 2024
Posting of AGM notice / shareholder circular
mid-April 2024
AGM of the Company
15 May 2024
Alex Ohlsson, Chairman of GABI, commented:
"The Board looks forward to engaging with shareholders as it seeks feedback to inform its decision-making process for the future of the Company. The Board will be seeking to ascertain a future direction for the Company which can be supported by a majority of shareholders. The Board remains committed to maximising value for shareholders."
As part of the Strategic Review, the Board is seeking shareholder feedback to inform its decision-making process. Barclays Bank PLC, acting through its investment bank ("Barclays"), financial adviser and corporate broker to GABI, will contact the Company's key shareholders to arrange meetings with the Board shortly.
The Board would welcome shareholders' views on the future strategic direction of the Company, including in respect of the following:
· a potential continuation of the Company in accordance with its current investment policy delivered by the Investment Manager, paired with a partial return of capital;
· a suitable time horizon for the return of capital in a potential orderly wind down of the Company; and
· acceptable pricing on a potential sale of the Company.
GCP Asset Backed, which invests in asset backed loans, announces that, at 31 December 2023, the unaudited net asset value ("NAV") per ordinary share of the Company (including current period revenue) is 93.21 pence per share.
The Board expects to announce an update on its Strategic Review for the future of the Company in the coming days, alongside details of a share buyback programme.
I personally think this is an opportunistic attempted asset grab by CGI. They have tried their luck with "purported" or "technical" breach claims. I would like to see a strongly worded rebuttal from ESKN have now had some time to chew the fat with their legal team. Alternatively if some of the muted CGI proposals are worthy of notification, then lets be hearing them. Do CGI want to be owner, part owner or what ? Also what are TOSCAs intentions / feelings with regards to the future of LSA / ESKN. Very very intriguing and I do not believe for one second all is lost.
Interesting late buy reported
Thanks Lukee, just wanted to confirm I was on the right track, which you did. Cheers.
Last div payment was 3.42p, the consolidation was 20:1, so next dividend will be 20 x 3.42p = 68.4p
Maths not a strong subject for me.
Anyone like to correct me here, amongst all you expurts.
If I was a betting man, and I am, I would say another RNS on this subject will be forthcoming shortly.