Member Info for WolfofWarks

It's so stupid it's hard to believe it's an actual person.

This is a lively surprise. What has caused it though. I heard something on the radio about China potentially removing COVID restrictions.

Mags - if you look at docket number 714 a further £77m was lost between 07/09 and 30/09 so stop lying to everyone. Interest payments alone were £97m.

Cretinous behaviour.

It’s like trading bingo diarrhoea

Sellers out
NT to buy
Wouldn’t want to be out of this over the weekend
Shorts closing
Gap filled
RNS any second

They are like conditions attached which give that particular lender preference or favourable terms which then make it difficult for other lenders to get involved as they can’t really secure their borrowing or are too far down the line in a default that it becomes too risky to lend.

The priming facility had restrictions on it which meant that any new lending would have had little chance of being repaid in a default. This stopped them being able to refinance parts of the current debt structure.

It will be the first lien now that could hamper negotiations as new lenders would have little chance of being paid. This is why I think newco is the most likely way forward. A clean slate with a new leaner less indebted capital structure and a road map to profitability.

Hi bullbears - it’s a lengthy document and it details the whole history of the company so you need to scan for the pertinent bits.

‘Didn’t they say that the CP issue hampered their ability to raise additional finance?’

It was the priming facility (the $1bn loan during covid) that was making a refinance virtually impossible. This is the reason the DIP facility is so large. $1bn was used to clear this facility and $300 to clear down the $300m that couldn’t be included within the C11. The only issue now is that the DIP lenders now have first lien which will still hamper finding alternative finance for the current capital structure but places them first in the pecking order.

Vue was privately owned not Plc so wouldn’t have received much attention.

Bullbears - if you think the CP judgement is the biggest cloud then you really need to read Israel’s opening statement from the court dockets.

It comprehensively explains exactly the predicament they are in and what the root cause is and he is the CFO so has been in control financially from the off.

The CP judgement has been kicked into the long grass.

He’s either a bot or figtreeharry with a new account.

‘If anyone wants to see just how hypocritical, Wolf is, go over to ARB where he attempts to covince others that it is not curtains for Argo blockchain holders. It will reveal just how bias he is and that he is here only to push an agenda.’

I’ve not done that! I barely post in ARB. It’s been terribly mis managed. Very sad story.

The lease negotiations have to be done landlord by landlord and has been an ongoing process since COVID. Some have renegotiated, given slack, etc, some have dug in the pursued legal action, winding up orders, etc.

They are dealt with in a case by case basis. I found it interesting how much power they had in terms of getting the rest of the DIP finalised. I guess it’s the judge making sure the larger unsecured creditors get something out of the deal while all of this is ongoing.

The landlords are also crucial regarding newco in terms of making the business sustainable going foward so they hold quite a lot of power all things considered.

“ Talking of maths where you getting the 10 billion from wolf.”

Including lease obligations, ie landlords rents who are unsecured creditors.

It’s completely missed out the affects of the upcoming dilution and potential wipeout for existing holders to be fair.

1) The plan of re-organisation is the D4E. Dilution, haircuts for debt holders in return for equity, etc, etc.

2) If major parts of the business are sold this becomes a lessor prospect going forward and those proceeds would be used to satisfy the claims of secured holders, unsecured holders, shareholders, in that order.

3) If private equity get involved you’ll be dealing with sharks and there will be a sliver for new holders in Newco if anything at all.

You’ve got $10bn worth of debt and lease obligations, secured lenders with first lien over the debt, shareholders are at the back of the queue and the company is not worth over $10bn. Do the math.

Bullbears - they can achieve most of that without having to take over the company though.

‘ - I feel there is an argument that can be made that cinema is at a place where taxis were pre-Uber, and hotels were pre booking.com and airlines pre whatevr the big booking sites are!’

This is the point - the disruptive platform business don’t swallow up the competition by taking them over. They disrupt and make their model redundant.

Cinema has that immersive experience quality that will be their differentiator but whether that extends much outside enthusiasts is up for debate. As an industry though the producers need to up their game rather than just rolling out sequels and franchises.

Hi bullsbears - the tie ups are interesting, that’s not the basis for any kind of takeover deal though. Usually a company would integrate vertically or horizontally to achieve synergies, efficiencies, etc, or diversify into a completely different market. I don’t see the benefit for Netflix in buying a cinema chain that’s struggling to make ends meet that would involve them taking on or clearing down $10bn worth of debt and lease obligations.

It’s the complete opposite of how a model in their kind of business works. Netflix are probably more likely to cut their workforce as a lot of these Nasdaq companies have become bloated and are being found out.

You’ve got a complete misunderstanding of the situation on all fronts. Firstly the Ebitda doesn’t include the lease payments which are a huge overhead as the leases have to be capitalised and therefore are depreciated. Cineworld therefore report EBITDAL which is the best stab at cash generated from the operations.

Secondly the reported agreement yesterday is only on respect of finalising the DIP financing which is needed to keep the company liquid while the C11 process plays out.

It is not any kind of final resolution. The company have said themselves that it will be resolved next year.

They announced C11 because they had ran cash down to the last $4m and had no further lines of credit.

“ another one blocked!
They had same level of debt they had last year! idiot
go check”

That doesn’t make it sustainable. Especially when operational trading is struggling to recover.

Hope you’re well JR.

I do miss your top slice updates.

Look at the cash flow statement in the annual report. Look at the going concern statement. They were as of 31/12/2021. Things have significantly deteriorated since then. Poor slate, rents pushed out further, CP judgement, etc, etc.

Simple stuff relatively easy to find.