Member Info for WolfofWarks

Hi patience - I think the thing here is that has to be done in conjunction with the ad hoc group.

At the minute we have a situation where we are not entirely sure what is going on as the ad hoc group do not seem to have responded to the proposed plan and the company are now pursuing a sale.

The fire sale would only come at the point that c11 has failed to reach any amicable agreement (including proposed asset sale) and progressing into C7.

The saleable assets of CW are its subsidiary businesses.

Goodwill is simply the amount paid over the book value of an acquisition at the time of purchase.

Elvis - in the event of a fire sale the ad hoc lenders are at the front of the queue as their debt is secured and more importantly putting up the DIP finance gave them first lien.

So whether it's a deal or a C7 they get paid before anyone else.

I'm a barrel of Coke and large box of popcorn guy.

My next foray to the cinema is Puss In Boots in the half term ....

That's a strange interpretation!

It's all about power via voting rights and security.

The DIP can pull the plug and they are first in line in a fire sale.

Hexam - Treat yourself to a bit of luxury with a VIP seat £7.49 :)

It looks like their model is location dependant. Manchester Quayside is £7.99, Accrington £4.99.

I don't live in a city I guess so why it's cheaper.

It looks like Bromley is a luxury Cinema where every seat is a recliner.

When you open the Vue website the first thing it says is 'Every Film Every Day £4.99'

So not too sure what is going on in Bromley.

'Anyone with a brain can see this is a viable business that is struc by the randomness of things. '

He Penta - this is after the debt has been cleared though.

Myoh

Vue charge £4.99

'If you look at previous chapter 11, 9 and 7 cases. The judge has the ultimatum say. Read the Sears case to see how clearly the judge is King. The judge’s word is final and cannot be overruled.'

If you looked at them properly or even did some very basic research you will see that it's a vote of the creditors that decides whether the plan is accepted.

The judge supervises the process and rubber stamps it at the end, they do not decide the outcome though. Only CW can do that be putting forward a conclusion that will be accepted by the creditors.

'Background
A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.'

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

‘ all of this allows a sale of assets bar bits of UK and ROW with us shareholders (and Mooky) getting something for our shares north of 4p … I think’

This is speculation on our part.

Hi Elvis

Or the marketing process is due to lack of engagement from the ad hoc group, maybe the offer was derisory. It's hard to make the maths of this work satisfactorily for everyone so maybe first lien gives them the lions share of any carcuss picking is C11 doesn't work out.

The longer this plays out the BOD are going to have to come back to them for more money past the early summer don't forget. A D4E at this point virtually gives them the company.

Re the 30 interested parties I would expect this is interest for various parts of the business or prestige sites. If the BOD are telling us their are 30 willing buyers for the whole group I would call boll ocks.

It's like a really shi te episode of Game of Thrones.

‘Hello Wolffie, I think I would still (partially) disagree with you the reason being is the debtors take a crap plan to the ad hoc, what do the latter do, file for C7 or accept D4E and play the long game. ’

One simply has to look into the vote required to exit C11 to see who the decision makers will be here. It’s up to the BOD to put together a resolution that will be voted in favour of by the ad hoc group.

Elvis - that comment was made in relation to the market process.

Read 3) again.

‘ My Fingers are crossed but starting to get a cramp.. lets hope they can draw out the chapter 11 upto 18 months’

There’s not enough cash to drag it out that long.

These interested parties (CP/Regal) go to the lenders because it is they who are the ultimate king makers of the outcome.

This is the interesting bit for me:

‘And it comes at a critical time in these cases; the Debtors have yet to receive a response to the restructuring proposal provided to the Ad Hoc Group on December 1, 2022.3 As a result, the Debtors have made the Marketing Process their major focus.’

So CW put forward a plan and the ad hoc gave no response. It does make you wonder whether their are any communications going on at all, hence now the marketing and sales route.

All depends on how them blockbusters are monetised and what margin accrues to the cinema industry.