Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
.....to try and recoup some of the money
Deos, they are going after individuals.
My guess is what i've said in the past.
"if the earnings at NMC are correct ( this is the million dollar question) then the suspension price was cheap. Also, NMC was trading at 10Billion market cap not too long ago."
ADCB and the administrators by extension sound like they want the listing to continue and is probably the route by which they can recover the most money. Although I note the position of the new CRO that perhaps de-listing would provide a simpler option while things are sorted.
There may also be some anticipation in the markets that now things are moving forward with criminal proceedings some money can be recovered. If there are tangible assets in the UAE then they will be difficult to hide from the authorities. The main thing that would help is if the big players can be implicated in this.
Finally!! No names yet though.
Is anyone willing and able to post The Times article headed "NMC Health could turn to market for cash"?
Thanks Autonomy. That conclusion seems to contradict what the administrators are saying. Any chance you could paste the full article here?
Deos,
Here's an extract from the National:
"On Monday, The Times newspaper in London reported that administrators could return to markets to raise capital if a restructuring of NMC Health is deemed to be achievable.
It cited court documents accompanying Alvarez & Marsal's appointment which stated it "may be desirable to continue to make use of the company as a listed entity to allow the group access to equity funding”.
In a statement to the newspaper, Mr Fleming said retaining the company's listing could “provide an exit route for investors if and to the extent that any of the existing financial indebtedness should be converted to equity under a restructuring that has the support of the creditors of the company and the group”."
The important points to note are that it says "continue to make..." and " retaining the company's listing".
Also, they are implying it may not be possible to recoup all the debt but part of the restructure could be a debt for equity swap which would then allow creditors to sell them at a future date to recoup that money, "an exit route". This means 2 things to me, firstly that the administrators see value in the company as a going concern (strong earnings) and secondly there will be a dilution in the value for existing shareholders.
I would reiterate though that if the earnings at NMC are correct ( this is the million dollar question) then the suspension price was cheap. Also, NMC was trading at 10Billion market cap not too long ago. I'm not saying it will re-open up at £9.
I would stress that it's still too early to suggest shareholders will get any value out of this but recent news seems positive.
Importantly, still waiting to see if there's any value here but some interesting points have come out today. Appointment of new board and noise from administrators that they may be looking to equity markets to raise capital.
If we assume the administrators know more than shareholders then they probably are already aware of provisional 2019 financials and I suspect they wouldn't be speaking of going to markets to raise capital unless they were good. I'm still of the opinion that health care in middle east is a strong business case and a growth opportunity that stands regardless of NMC's debt burden.
Also, there's nothing that the administrators have said that definitively suggests no value for shareholders.
https://gulfnews.com/business/banking/nmc-health-placed-under-uk-court-supervision-1.1586435611366
These guys will be the administrators:
https://www.alvarezandmarsal.com/global-locations/united-kingdom
Following interview outlines briefly what's happening in the background.
https://gulfnews.com/business/banking/uk-courts-intervention-is-worst-case-scenario-says-nmc-health-chairman-1.1586237266028
Bottom of this article has an interview with the man himself from last year and he almost sounds like David Brent. Enjoy!
https://www.thenational.ae/business/markets/uae-companies-declare-exposure-to-nmc-health-as-administration-looms-1.1001712
Don't think the terms around the debt structure is clear yet. But I suspect there will be a mixture of senior and junior creditors. Think of the senior creditors as having the secured debt and junior creditors having the unsecured debt. I doubt that ADCB would be a junior creditor, and I doubt a junior creditor would force adminstration because in the event of the sale of the business there would not be enough cash to cover any of their exposure and would almost guarantee junior creditors get 0 back.
Quite interesting dynamics at play here. I think there are 3 camps. NMC Board, junior creditors and senior creditors. It looks like the junior creditors and perhaps a couple of the senior creditors don't want administration or haven't at least sought it. Whereas ADCB and a couple of other senior creditors do want it.......But......not for a quick sale of the business to recover as much as possible. It looks like the main reason is because clearly the board have pushed back on 1 or 2 (maybe more) demands and so ADCB have lost confidence and are playing hard ball. They must think administrators can do a better job than the board. If the board capitulate then I suppose ADCB may withdraw the application.
One thing that is becoming more clear though is that they all must think earnings potential at NMC is strong. Otherwise why fight over a dead duck.
Mrd, I know it's hard but I would suggest to try not to think about NMC, it's not completely game over but realistically I can't see shareholders getting anything unless the administrators can recover all the stolen assets.
If you do your research well there are some great buying opportunities in the market just now that will get you better returns than NMC for much less risk. I sincerely wish you good luck.
https://gulfnews.com/business/banking/adcb-applies-to-uk--high-court-for-appointment-of-joint-administrators-for-nmc-health-1.70807912
Things certainly have changed. Everything that happens now, if administration is granted, will be for the interests of the creditors. Any retained shareholder value will be unlikely and coincidental. The board ultimately have lost control of the situation. I like a lot of people here am disappointed the board were not able to do better and clearly ADCB didn't think highly of them either.
II's appear to still be trading off exchange.
Don't think Taco is telling the truth though. It would make absolutley no sense because at the very least the senior creditors would get back money from sale of assets, which is not insignificant so why write the debt down to 0. However, I would understand if a junior creditor wrote off the debt and that would suit my narrative.
Tacotaco, if what you say is true then you have just released material non public information which is insider info.
Quite comfortable with the statement released by ADCB today. It sits quite nicely with my comments from yesterday and doesn't change my opninion.
ADCB’s liabilities at about $981 million as at end-March, representing less than 1% of the bank’s total assets, according to a statement.
Credit was provided to NMC Health through a combination of facilities extended by ADCB, as well as by Union National Bank and Al Hilal Bank prior to the merger of the three banks in May 2019
The bank is not in a position to quantify anticipated impairments at this time due to evolving developments at the NMC Health
Bank has initiated discussions with NMC and other substantial creditors to implement appropriate solutions to address the company’s financial defaults, governance and other issues