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I am English. And if my username was so unoriginal, how come no one else already had it?!?
A light year is a distance, not a measurement of time ;)
Max Petroleum announces that, following the suspension of trading in its ordinary shares on the AIM market of London Stock Exchange plc on 2 March 2015, positive discussions have continued in respect of an appropriate debt restructuring with Sberbank and an equity investment from AGR Energy. In addition to a debt restructuring and equity investment, the Company also requires bridge financing to ensure the Company is viable for the period until the regulatory and other approvals can be in place to permit the debt restructuring and equity investment, if agreed. The company continues in operation, producing circa 2,900 bopd, under severe financial stress. The Directors of Max Petroleum currently continue to believe that there remains a reasonable prospect that ongoing discussions could result in a sufficient refinancing of the Company, including bridge finance, being agreed with Sberbank and AGR Energy in the very near future and, on that basis, have not yet put the Company into administration. A further announcement will be made in due course.
Didn't ALBA used to make hi-fi's?!
To my mind, they would/should have known about this in Feb when the last operational update came out. Why are we only hearing about it now?!
I think we will hear something by Monday at latest. That will be 1 month since the initial Warning RNS, and the update on Mon also referred to there being a very limited time to agree something.
It is very easy for a company to owe tax when it is apparently loss making. Tax accounts are calculated differently to the annual accounts.
I would put this between A Prospect and Average Prospect. This is obviously based on my own circumstances: 1m shares at 0.1185p, and a short term event horizon. The buying on Thursday suggests that many are waiting to buy back if the finance issue is sorted, so assuming they do this will fly, but it's obviously not guaranteed. Interesting times...
You must be sat on a tidy gain at the moment!
Refinancing doesn't take months to finalise. The bank would be working with the company, and it will likely be a Letter of Variation or Amended and Restated Agreement which will vary the repayment profile (and probably increase the price and reset covenants, as I'm sure these need to be modified). Yes it may take time to finalise the documentation, but erring agreement from the Bank will be a quick process and they can update the market as soon as that has been agreed.
I agree. It would be a different story if they were still exploring, but they are producing and have a revenue stream. Despite what Vince Cable will have you believe, Banks prefer to work with clients for an agreeable solution rather than force a company into administration...reputationaly it's not a wise move when shareholders will lose money!
So how much you holding now then? You must have balls of steel. And be loaded. I can understand why you would load up on FRR but this? It's a binary bet at best!! Must have cash to burn ;)
I think they will agree something. If you look back through the accounts, the company previously defaulted on their covenants and the bank renegotiated. The bank also is a c.10 equity owner and so can participate in any upside on that front. The overall cash flow for MXP doesn't look too bad, except for the bak debt which has quite a steep amortisation profile. If they can get that delayed then they should be able to pull through this.
The reason for investing here is simple - it's a short-term play based on the downside v. upside scenario. I have no interest in holding long term, but assuming that the company negotiates a refinance and potential equity injection then the price should trend back up to c.0.6p. Worst case scenario is they do go bust, so that's 100% downside against up to 500% upside. Negotiations are ongoing with the finance providers (who themselves also hold c.10% of equity) and so there is still a possibility of the company getting through this. By no means guaranteed, but I knew that full well before diving in. In respect of timeline we're talking weeks rather than months, so we'll see what happens...
Nice. I've dipped my toe in in a small 1m holding, purely speculative. Will either go bust it sort a refinance and jump up again. At least it's something else to focus on other than the paint drying over at FRR!
How many of these did you buy? Am considering following your footsteps with a small punt...!