Member Info for WolfofWarks

Ian - there is so much nonsense in those posts that it's hard to know where to start. The ad hoc lenders are investment banks, hedge funds, PE, etc, they are not borrowing money from banks. They also do not need to put billions into the company as they will be given the shares in exchange for the debt they are owed and will likely need to put in working capital or will be able to go back into the open market and obtain new financing. What has made you come to the conclusion that the lenders are fighting off bankruptcy?

It's perfectly legal to hold the bankruptcy proceedings in the USA, do you not think Cineworld's army of advisors and lawyers might have considered this or has Ian Harding off LSE uncovered a nugget? Seriously lol! AS an example when Liverpool FC got into trouble with Hicks and Gilette their court proceeding were in the USA.

I'm sure he would have come out smelling of roses.

I posted about Hertz the other day. The turnaround was largely down to the semi conductor shortage and unavailability of new cars meaning they were sat on 500,000 vehicles and re-established their business overnight.

The company was taken over 100% by the lenders.

Bullbears - Vue is now run by its lenders.

Not doing too bad are they.

These lenders are PE and hedge funds, they know what they are doing and are turnover specialists.

They'll be picking up the company with little or no debt, turning it around then either flogging or IPOing it.

Ian - Of course they want D4E it's the default mechanism for getting some or all of their cash back.

No they'll wrap it all up in a new. Look at the finer detail of the Vue rescue to see what is likely to happen here.

My buddy Poor doesn't concern himself in the finer detail of these things :)

'The lenders have borrowed off the banks'

Ian - these are private equity and hedge funds. Their whole point of existence is to allocate capital. They will not be borrowing off banks when they have billions in clients funds ffs.

Hi Poor hope you're okay. I'm watching you here with fascination.

Tegop - this will end up going private if the lenders take over as they are all PE/hedge fund types.

'@wolf, that would just be a zombie site. Wouldn't closing them and renegotiating the contracts to account for the closed sites be better?'

Not too sure how it works in the USA but in the UK you cannot just re-negotiate a lease and there is no onus on the landlord to allow you to do so unless they are willing. One of the failures of retail in the UK at the moment is the high streets inability to renegotiate its lease terms. Mike Ashley plays hardball and basically walks away from sites at lease renewal if the landlord won't come to the table. It resulted in lots of House of Frasers closing. Firms like H&M and New Look are trying to bring in a model based on individual store turnover with limited success.

Some of these Cineworld locations are on prestige sites so the landlords probably have a reasonable hand.

'@hexam Revenue means nothing if a site is unprofitable. It has negative effect on cash flow and margins. Therefore, better off closed.'

That would depend on the cost of fixed overheads and how many of them can be dropped. You can't walk away from rent, rates, insurance, maintenance, site security, etc, even if you do close the doors. Sometimes by closing sites that lose money but make a contribution to gross profit companies often end up making an even bigger loss when they thought they were saving cash.

‘Can't remember that last time mng had an 8% day‘

Just don’t expect it on an income stock like this.

Which IIs are buying?

They've pretty much all bailed in the autumn.

Stop chatting ****.

Tegop the reality is they've only renegotiated around 40 sites out of I think 750. On the 4th Jan presentation they showed a bar chart where I think over 100 leases were still in negotiation so there is no guarantee of any results. If you look at the court dockets monthly operating accounts are posted each month to give you an idea of performance but doesn't include ROW.

That'll do nicely. Dividend coming up as well.

Yes but how far out it can go beyond that depends on how quick a sale goes through and how accurately the C11 cash flow forecast reflects the increased performance.

I’m assuming if the D4E goes ahead they won’t actually let it run out of cash.

I think Mooky is probably now going to try and keep his CEO role and maybe negotiate himself a slice of Newco.

Hi Bullbears - i think we’re past there being any other option but 1) now. You got to remember that the c11 come after 18 months of trying to rescue the business. They won’t have enough cash for option 2).