Member Info for Tegop

Hi Karl,

Nice to gain a fresh perspective. Is it possible for MOOKs and the BOD to cram some loans in the DIP and come out with Holdco(ROW) relatively intact?

The RNS stated ROW is unaffected but can the Creditors chase the assets outside of the C11 LEnders?

Thanks

Another one capitulates.

I hope you get better luck on the rest of your investments.

@Elvis, D4E can also delete your shares by nature of making a new co and making the old shares worthless.

I keep saying any offer less than the D4E is pointless. 99.5% dilution on a 5B theoretical valuation would make the current shares worth 1.8p. that is the All time Low of the Sp.

As wolf has been saying, they are accounting for all possibilities. The april 10 and 17 deadline will be nothing if no other possibility. OR they might as well liquidate and let them worry about the scraps.

In both sale and d4e, the ownership structure for regal would change.

If they value CINE less than 6B. Senior Lenders will take the entire. Equity of the C11 Group, take the Loss on the deficit and call it a day. The rest get zilch.

They will need to value it to know who gets how much. Hexam and HNS spent months coming up with possible valuations but one thing to note is:

The SP is irrelevant. This is UK law since CINE is UK listed.

"The debt/equity swap is likely to be treated as a reorganisation of share capital by TCGA92/S132. Since the ‘old asset’ - the debt - is a QCB, and the ‘new holding’ - the shares - is a non QCB, the debt that has been swapped for shares is treated for loan relationships purposes as having been disposed of for its market value (TCGA92/S116(8A)). Under TCGA92/S116(6), the capital gains base cost of the shares is that same market value. The market value of the shares is irrelevant."

Unless Wolf is secretly a valuation expert, he does not have a final say on the valuation they will use.

https://www.gov.uk/hmrc-internal-manuals/corporate-finance-manual/cfm35400

'Valuation of debt swapped for equity
Where the borrower is in financial difficulties and the debt is impaired, the value of the shares taken in the debt/equity swap may fall short of the loan treated as discharged. In most cases, the creditor accepts the shares as satisfying the debt in full. Alternatively, the creditor may release part of the loan, with the shares received taken as consideration for repayment of the balance.'

Worst case, as I pointed to tedzkats is that ROW is outside of C11 and will be subject to a different proceedings post c11 of the group.

The other possibilities are within my post history.

@Elvis post the words here and read it out loud.

It has something to do with the takeover code. It restricts the things they can do and the offers they can receive.

@Elvis

CINEWORLD Group PLC is not for sale. The 'group' assets are. If anyone buys CINE as a whole they will have to buy the equity at around the 52 week high.

Because this is not a done deal yet. Nobody outside of insiders know what the Plan looks like and how much we will get diluted. A surprise buyer/auction is also possible.

Contrary to the regular derampers, CINE never has said the stock will be suspended or that SP will be zero. Only that equity may be diluted.

@Elvis

The BOD usually get something from the newco by virtue of their previous experience and having a chair on the negotiating table.

It is actually Sandy gove who loaned Mooky's trust that has to worry. They lent against it at around 200M. Mooky making the shares untradeable would be bad faith.

Review letter from UCC re marketing process
(.2); correspond with independent directors re
same (.1); correspondence with A. Rogoff re
same (.1); correspondence with C. Foster re
same (.1); correspond with D. Sinclair re
potential response (.1); review correspondence
from Cineplex re bid (.3)

From the latest docket.

https://www.cnbc.com/2022/03/17/amazon-closes-deal-to-acquire-hollywood-studio-mgm.html

They that was just 1 year ago. They then put 1B to dip their toes at theatrical releases. This is no secret that Amazon video does not earn them money. Putting 8.5B plus 1B is not miniscule.

The industry has historically been profitable outside of a pandemic.

Amazon's previous budget budget to making its own movies was nil. 1B is a giant leap. They will be bound to increase it eventually.

They now have MGM'S library and presumably its talents and resources to join in the studio market.

Return to profitability is not until 2025 presumably, they can wait for AMC and cine to fold and buy the pieces, recover and buy at a premium, or do nothing.

Disney canceled one of its Series and changed it to a movie. Their streaming window went longer than 45 days.

Paramount made a rare 120 day window for Top gun Maverick. Amazon pegged 1Billion for theatrical releases. Even netflix has a weird 30 day arrangement with cinema chains.

No, streaming will not replace Cinema. They will coexist.

I think someone leaked off from an anti capitalism forum and got lost into the forum.

Not only is it baseless opinion, it is sorely unrelated to the matters at hand.

@Waffen

Are you suggesting there is something beyond the dockets(Public info) that is material to the situation between CINE and the lenders? I do not claim to know more than I do but I can only work on public info.

One thing to note is that 'Cleansing to ad hoc Lenders' concluded yesterday. That means they are now Insiders as well as CINE Bod.