Member Info for WolfofWarks

‘Will not be able to sell group without shareholder approval.’

Not true

‘Also Regal has 90-95% of the debt. So unless they get 4-4.5 billion for it. Not worth it.’

Not true

‘Lenders would not agree and also legality of it is up for question. Feel Mooky is trying schemes which involve him keeping control but are not legal.’

Not true

‘They started off trying an illegal action in using DIP to pay off second lien lenders.’

Not true

‘I expect the judge to lead this more now. He has been lenient so far. But with his press release about hurrying up the process. Shows he has had enough of Mooney’s delaying tactics and schemes.
Am sure Cineworld’s lawyers advised to sell the whole company and get the best price for it and Mooky instructed them with completely different actions.
This will get more aggressive and confrontational soon. IMO’

Meh

He Jeff - the profit will go into CW plc as they own the shares in the subsidiaries. The proceeds however will go towards paying down the debt in order to satisfy the lenders. There is a large intangible goodwill asset on the balance sheet so the sales might not necessarily generate much profit.

Goodwill arises on the purchase of those subsidiaries and reflects the different between the price paid and book value of those assets at the time of purchase less any subsequent write downs.

https://www.weightmans.com/insights/group-structures/#:~:text=A%20group%20structure%20is%20created,control%20of%20the%20parent%20company.

Here is some basics Jeff

hi Jeff - they are not offloading CW shares but shares that CW owns in respect of the group companies owned.

Think of it like Jeff (the Plc) owns loads of different shares in his ISA (the group owned companies). You can sell all of those shares and Jeff Plc still remains albeit an empty shell or with less investments.

The alternative is you could have just sold Jeff Plc along with everything it owns, which would have been a takeover.

It's a large group structure. There's something along the lines of 100 subsidiaries if I recall correctly.

Hi Jeff - the RNS refers to the shares of CW Plc - they won’t be sold, so they’ll be no takeover of the group.

Each individual company has its own shareholding though . The investments in those individual companies make up the assets owned by the CW Plc. So if it wants to sell Regal it simply sells the regal shares it owns.

The UK Plc listing stays intact by virtue of the Plc not putting itself up for takeover, choosing instead to sell off the component parts of the group as a batch and presumably retaining the ROW business. Although last part is pure speculation on my part.

Hi Jeff each individual subsidiary company has its own shares which are owned by the holding company (CW plc).

So if they want to sell regal the purchaser will simply buy the regal shares currently owned by CW plc.

Hi Jeff - the assets of CW are it's subsidiaries.

Elvis - I've looked at the lawyers bill. It contains lots of summary explanations on exactly the kind of items you would expect a company in C11 proceedings to be taking advice on.

it does not offer up any tangible answers to the what is going to be proposed. So seeing keywords such as FCA, Takeover Panel, RNS, contingency finance, etc, etc, doesn't really get my loins stiring old bean :)

I'm not so sure the company has moved on since September. They are still no closer to an agreement with their creditors that I can see and have now pushed it out even further to next year. If anything the jewels in the crown are likely to be sold off which I can't see as being anything other than an exercise to clear down debt with little value accusing to shareholders.

Other than Avatar the box office hasn't been great and I would imagine financial performance to be along the lines of the forecast submitted in the first day motions.

The economy hasn't got any better, finance is arguable more expensive, interest rates have risen, etc, etc. So the macro conditions have deteriorated further for companies that do not turn a profit.

No they are not Ian! They are not part of the DIP so do not have first lien. The ad hoc lending group is highted in the initial presentation.

Elvis - all tied to the exiting of C11 and de-leveraging and/or sale.

Israel's opening statement to the courts states quite clearly that CW cannot obtain financing from any avenue, otherwise they wouldn't have gone into C11 in the first place. They exhausted all avenues over a period of two years trying to keep the company afloat.

A post C11 CW with little or no debt and a solid business plan would of course be a viable business to lend to again and conventional avenues would open up.

LTH - The funding they have been given was literally to keep the lights on while the C11 played out. If there are no willing buyers and the lenders have little interest in the deleveraging transaction (highly unlikely imo) then C7 would be the obvious natural course due to the lack of alternatives.

'Needs shareholder approval for a start.'

No it doesn't, not in chapter 11.

Ian as usual you are wrong at every turn. If they sell Regal Mooky will no longer be in charge so you're whole point makes little sense.

Doctor - you've hardly stumbled across some salacious gossip here. We have an RNS advising of the prospective sale. I'd suggest the $2.1bn valuation will be wide of the mark mind. For a start any potential buyer would be buying the existing shares in Regal that CW own - there wouldn't be any issue of shares unless it was tied in with some sort of re-financing or lender takeover tied to the C11 with Newco set up, etc.

‘ Wolf - How can you say MoOky has no access to capital? Are you his financial advisor? If i remember correctly he sold 8% of Cineworld shares above £1.25? thats probably not his whole wealth but he definitely has access to some capital?’

I mean in his role of CEO of cineworld.

I obviously have no idea of his personal finances.

Pis hold a lot more than 30% I would think given the speed at which the IIs bailed.

Corporate actions lend to knock on affects to personal taxation so I wouldn’t think too much into this as they are probably getting general advice on the implications of the various options for all the various affected parties.

It’s highly unlikely that Mooky’s estate will fall into inheritance tax. He’ll have his own team of tax, trust, estate, etc, planners.

‘the dilution of aeromex doesn't seem to be as much as suggested
https://simpleflying.com/aeromexico-chapter-11-support/

seems to be conflicting reports’

This is referring to the creditors stake in the re-organised company following the plan vote, not the existing shareholders.

‘- who is driving the conversation with any interested party on Cine side?

Mooky is’

This is highly unlikely. The senior lenders will be the driving force. They have control of the eventual vote as well.

All reporting around regal and CW sales has been around interested parties negotiating with lenders, not the company.

Ian - that’s all conjecture.

What’s going to be in this magical business plan?

Bear in mind Mooky has no access to capital.

They have no access to credit lines, hence the c11. So there is very little scope for increasing borrowing further.