Member Info for WolfofWarks

Juno - I'd say more like Herz were suddenly sitting on gold.

Patience - that would depend on whether or not you believe what the company is telling you is expected to happen.

Hertz had a couple of tailwinds.

it was picked up as a memo stock at the time of Gamestop, ACMC, Bed. Bath & Beyond, etc.

But the big turnaround was an the business itself once the semi conductor shortage came to light they were sitting on 400,000 rental vehicles at a time new vehicles dried up and the second hand car prices rocketed.

So it's not really a bread and butter C11 case but one where the outcome was fortuitous for holders. Iirc I think they got a small slice of Newco but actually received money for the outgoing shares. Can't quite remember how or why but I think the bottom line is the debtor company suddenly become quite valuable just as it was all being wrapped up.

That's highly unlikely though right?

You started off by saying there were two major options in fairness.

Ian - docket 1340 is the appearance sheet before the judge on last Thursdays session.

If anyone was interested in pursuing this I would suggest trying to get hold of a Bloomberg terminal print and seeing if there are any Iis who have a holding still and try to approach them to see if there is any interest.

Patience - The D4E is the worse option for you here - the company will literally be given to the lenders by virtue of the amount of Plc shares that will have to be created.

At least if a sale could have achieved somewhere in the $5bn plus there might have been a chance of holding onto the ROW within the Plc.

I think they'll be a mixture of both now with ROW being sold to clear down some of the debt along with some strategic sites of value to any potential buyers with the rest of the UK, USA, etc, being wrapped up in a D4E for the remainder of the debt with some small token amount for the unsecured creditors.

'The first lien lenders are paying off the second lien lenders in full.'

Ian - why on earth would they do that? There's a pecking order and they sit right at the top! They are not a charity ....

Hi Ian - The lenders had representation at the hearing on Thursday.

Docket 1340

I’ve just stumbled across the following article which is interesting.

https://www.investorschronicle.co.uk/tips-ideas/2019/09/26/cineworld-highly-leveraged-following-regal-acquisition/

The problems started before covid which accelerated them. This was before the CP attempted acquisition as well.

So they bought regal which was already heavily in debt, with debt and a rights issues. I’m assuming they were going to borrow more to purchase CP as well.

Short interest pre covid was already at 7.6% in 2019 so the iis were already betting against them.

So penta to use your analogy you would be buying a company in debt with debt, then another with debt, then another with, etc, etc, to the point you have so much debt that the interest payments alone are sucking up a third of your profit, and that’s in a low interest rate environment as well.

Why would I be happy?

Assuming you are not a child and judging by the majority and lack of spelling and grammar I think you're more likely to be the one on Jobseekers.

Are you related to Forest by any chance?

This is where you need a decent II on board looking out for your interests.

'Do I lose my shares if a company goes private?

When a publicly traded company becomes a privately held company, the public company's shares are purchased at a premium by the investors buying the company. The company is delisted from the stock exchange where its shares formerly traded. Shares now can no longer be traded publicly.'

This would be the case in a normal sale, Elon Musk buying Twitter being a case in point.

It's the acquisitions at any cost with no rainy day planning that has led to his downfall.

I've been through something similar with 888 and ended up selling up with a 90% loss. They've just got rid of the CEO.

Gump - is there any point to you other than to accuse people of being short?

If you can let me know how I can start one of these infamous PI shorts it world be much appreciated.

That's a really interesting case as it looks like the management had their hand in the till. There's all sorts of skullduggery going on.

https://www.sec.gov/news/press-release/2018-133

The company went on to have further problems even after they come out of bankruptcy.

https://www.chron.com/business/energy/article/Struggling-Energy-XXI-sold-for-322-million-13003699.php

Hi Tegop - that's what was being proposed. I 'm interested what they come out with though after the establishment of the committee.

Hi Tegop - different classes have different weight in the voting. The ad hoc group have over 50% of the vote which was confirmed in the early day motions. It wasn't a massive majority though, bit like Brexit something like 52% vs 48%.

LTH - it would be interesting to know the outcome of that particular committee and what it achieved.

I see the management look like they were getting a slice in the pie of the new company.

Mooky might just come up smelling of roses here I suspect if the lenders want him in charge.