Member Info for WolfofWarks

Hi Jeff - they got a slither of the new company relative to what they had before . The new company was also fortuitous in that the semi conductor shortage played into their hands. It’s quite an interesting read. They had a stock of 250,000 cars that could have potentially been sold which suddenly became gold dust due to lack of supply and the uptick in the value of used cars.

I guess the hedge fund that took them over probably envisaged this being the smart buggers they are.

No but obviously it’s a given when making investments.

Poor - it is not new money - read the court reporting it’s new debt for old debt. Of which $1bn is going to be repaid in a few month time. The court have delayed this happening immediately but awarded the lenders a 20% yield - ie very expensive short term finance so that the company can continue in the short term as a going concern.

It also puts the lenders of the DIP in pole position with regards to the D4E swap.

LTHCINE - Regarding Vue - DYOR means just that. It’s not for me to have to spell everything out for everyone. Especially if folk are giving me stick for giving an opinion that doesn’t involved having my head stuck in the mud ;)

The judge is protecting creditors by not letting the main lenders take £1bn out of the company straight away so they can join the rescue plan and have their interests registered.

As a case in point look what happened to the existing shareholders in Vue and look who got to own the newco.

Poor I think the operations will always survive because without the debt it’s profit generative. It’s the shareholding in its current form that won’t.

The company surviving and the current shareholders maintaining their investment are not mutually exclusive.

You’ll see once the deleveraging and restructure have taken place .

Hi my reading of it is that the high yield has been out in place in order to delay the repayment of the £1bn by a few months so that the other creditors have time to assess and become part of the restructure plan. It looks to me like the reason the yield is so high is because they are down to there last few million so this money is their lifeline to be able to buy time to negotiate the restructure plan. This going through the court is good because it’s giving a transparency that wasn’t their before.

From what I can make out I think once the plan is in place the creditors then vote on it and it needs to be approved by the trustee of the court.

The trustee is making sure the agreements allows the company to continue trading, keep employees jobs, money in the bank, etc, etc.

The drop in dividend has really hit this. I think a lot of investors were hoping for the 10% yield.

It doesn't matter where the bank account is based you are a UK citizen.

Plus dividends can only be paid by the sanctioned plc so it's a complete no go anyway.

Thirdly - doesn't anyone know if the company is actually making any money? That last trading update wasn't pretty.

You would hope they are on a fixed tariff.

"Directing most of the new loans to working capital rather then just repaying and replacing older debt."

Where are you reading this?

I'm seeing this in the article "He took issue with the existing $1.94 billion loan proposal because it would mostly be used to repay old debt."

So the group putting the money up want to pay it back to themselves - the judge has took umbrage with this and is now offering a 20% yield on the borrowing on the provision that it's not used to repay debt for several months.

So if I am reading this right the $1.94bn being put up by the current debt holders will mostly be used to repay the debt owed to them - no wonder the judge isn't happy with it.

They are basically re-financing their own debtor book but now with a nice 20% pa premium on top.

It was also a issue of perfect timing for AMC, GameStop, Bed bath & Beyond, etc. Millions of young Americans with no work and thousand dollar cheques from the government regularly.

Most of the Meme investors who got in at the start have been badly burned. If they were in Crypto as well they've been pummelled.

You've only got to look at the earnings reports of the likes of Robinhood to see that transactionally a lot of the meme investors are no longer participating in the markets.

Jeff - the company is effectively overseen by the US courts now. The BOD have some decision making power but anything big like entering into a new contract, selling assets, material payments out, etc, have to be signed off by the courts appointed trustee.

They are in the FTSE just not part of the indices.

Yeah that sounds like a road to ruin to me! I’m surprised the likes of IG would let you open one at this point.

Lol

Ha ha brilliant Hexam

Ian - it means nothing of the sort.

I assume there must be certain criteria that are required for inclusion within the indices and CINE no longer meets them.

It makes sense I mean if pension funds are investing peoples money into index trackers you would hope the companies included would be solid.

“Wolfe is FILTERD.....had his chance, multiple id’s.”

FTH - this is absurd. What are my other IDs out of interest?

Just to be clear. There is nothing veiled about what I’m saying. I have no faith in this company whatsoever. I’ve had this on my watchlist for two years because I’m interested for my own knowledge in what happens when a company goes bad, the warning signs, red flags, etc.

I also take umbrage with pristine rampers who lead others up the garden path who display little knowledge of even the most basic financial or business understanding.

These are the people that will lose your money, not me.