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It seems that Mooky & Co. are satisfied with the lender's solution and are not interested in keeping cineworld plc. I wrote an email to cineworld about 3-4 weeks ago regarding the "RoW" shareholder plan which in principle ticks all the boxes for the lenders and offers to buy RoW from the lenders via the combination of the highest bidder & equity raise. This would also allow to unlock the value of the current shares which benefits the current shareholders. The plan is sound imv but they're not interested because the current BoD would no longer be in control.
How did we go from a buy back to rights issue in less than an hour? There's no need to reinvent a bicycle - market wants debt reduction so the BoD needs to focus on how to spend and invest wisely to facilitate a bigger repayment by the end of the year.
"in cahoots" bit is funny :D Mooky would be like daayyuum, it was such a nice plot, excuse me, Plan.
Yes, extremely painful and something has to be done to break the current downtrend. The board has been ignoring the stock price issue for a long time, saying that they have the situation under control in a long term. We're not getting closer to a divi which can send the SP up. Our current CFO was in McDade's team were it all went out of control and the company nearly collapsed.
There has been no evidence of "working on the debt" as they're prioritising developments in Gabon and their Jubilee plan. They should buy back some bonds to get the SP protected from lower oil prices, otherwise, Tullow would have to pay interest on those bonds and if oil would plummet to 50$/bbl they won't be able to make up the losses elsewhere. Rahul said during the last update that the oil price can shift their focus but the market doesn't like his strategy. Maybe the SP would be close to £1 if most effort went into repaying debt when the oil price was high (100$) and investing into production, drilling activities and acquisitions when the oi price is low (30$).
Not surprising given the stock performance. Lost 50% since last AGM.
"Reduced UK activity in certain areas due to the EPL, including partner cancelled programmes at Elgin Franklin and Beryl and rephasing of certain decommissioning activities"
This is disappointing but understandable if the projects do not make sense economically. I see the SP drifting lower, maybe 215-220 range.
Usual crap from cineworld, would've been much better to get a trading update
Wolf, you're wrong with every one of your assumptions so I'm not going to argue anymore. Just because nobody has bought Cineworld (yet) on the proposed terms doesn't mean the business is worthless. Every cinema chain is in a tight financial situation after covid. They wanted all cash offer for the group as a whole which was simply unrealistic.
AMC cannot afford such deals, they would end up in Ch.11 themselves... The lenders knew that there won't be any serious interest and that's why Joshua Sussberg was so enthusiastic whilst reporting that no bids came anywhere close to $6bn figure. Then Cineworld announced they're not considering RoW in the sale... let's be honest, they've never made the process clear for any potential buyer. What is there to bid for? For the group with the litigation and huge debt pile? If I had 6bn I wouldn't deal with them no matter how good their business is. With this approach, cineworld would fail at selling gold at half price!
Wolf, until the Plan is approved the lenders are not officially in charge of the company and cannot use company's money in their own interest. The BoD got us into this mess but that's ridiculous to assume that just because you're first in line and lent 1/16th piece of a pie during the pandemic, (and collected interest up to date), now they are claiming 1/4 of the pie back with the help of lawyers paid from company's revenues. On paper, Cineworld is worth more than the total debt. If you disagree - email Mr. Cohen because he has put those figures on numerous reports.
@Tegop, that was a rhetorical question, those lawyers are a complete waste of space. Since September, they consumed ~5p per share (which equates to £50m+ wasted by drafting Alex's partner and the lot). Of course those are essential to the lenders but they should use their own money and lawyers to push through their plan, not cineworld's revenue.
who is Alex's partner?
@Metom, don't play into the hands of Cineworld lenders. I'd rather prefer it to keep going up and down. The fundamentals are not important, some people buy Doge or some **** without any material backup.
the current CFO is the same guy who was part of Paul McDade's team. You have to question some decisions, e.g. why are they not purchasing bonds back at a significant discount? When those mature they'll have to pay %%s on top.
"It's not like he's been a safe pair of hands running the ship so why do they wish to keep him on. If any one else can sing his praises as a genuinely good fit for the job, would love to here it?"
Because he's completely surrendered to the lenders, making bad decision after another bad decision... The BoD should have been putting some effort to argue that the company is worth more than what is owed to the lenders.
@JohnNth, if you followed the discussion you'd know that I never predicted raining unicorns! I was criticised by some Mike bloke on this forum when the SP was in the 80s (after a pull back from 120p) where at the time I commented that the value is poor in the 70-80p range. This time last year we were around 30p and few months later Ch.11 calamity happened. As a result, as soon as the lenders took charge they had a clear idea of shafting all shareholders and if they CAN legally boot us out then why not go for it? Why would they leave us 5% or 1% or 0.5% after restructuring when they can simply keep everything? Unfortunately, any recovery, income or film slate turned out to be completely irrelevant. Even if CINE was to miraculously report a record revenue for H1, the lenders' plan would not be overturned.
"Under Cineworld's earlier proposal, a majority faction of lenders, which includes Blackstone Alternative Credit Advisors, Carlyle Investment Management and Sixth Street Partners, would have received 27% of the company's new equity shares simply for agreeing to support the exit financing package that they themselves engineered, according to the objecting lenders."
You couldn't make it up. :D
I also want to trade it a bit but need to sell first and for that we need some news here. We've had 5-6 bad rns's since August 2022, the next one's likely to be positive.
Bushy, Warren Buffet once said: "You should do something you understand yourself. If you don’t understand it yourself you’re gonna be affected by the next person you talk to."
I don't understand the fundamentals that caused today's drop, only fear on old news. I haven't learned anything new from the rns this morning either, so for me it's still a hold.
they've forgot to include a "no recovery" message today... probably saving this line to cure the SP increase.