Member Info for WolfofWarks

Nonsense. It’s a good job there are people like myself and Hexam here otherwise yourself, FTH, AJ, etc, just talk rubbish all day leading everyone up the garden path.

None of you seem to have done any research, clearly don’t understand the predicament the company is in and don’t seem to have the first clue about the c11 process or how these kind of collapses have left shareholders wiped out historically.

You’ve all just crossing your fingers and hoping it will be 10p by the end of the week.

“ How can they guarantee any sort of recovery in the share price? That would be irresponsible and would leave them open to legal problems in the future…”

They are not talking about the SP. By interests they are talking about your shares ie total wipeout is a possibility.

I’m pretty sure that’s never going to happen.

Melonhead - that second part is wrong - I think you mean this "there is no guarantee of any recovery for holders of existing equity interests"

I managed to read it earlier on Google without a subscription. I did used to be a subscriber though no might get a few articles a month still to try and entice me back.

Her Twitter is her official channel. All twitter accounts are private unless you are part of their digital marketing team.

The £1.9bn is a distress mechanism to keep the company afloat while the provider of that money decides how much of the company they want to take. It's certainly not fresh capital and a vote of confidence and you are deliberately misleading posters by suggesting that's the case.

Surely you understand this? If you are in any doubt read the FT article that come out earlier - it's very good. They're already suggesting total wipeout for shareholders here btw.

The worst thing you can do imo is chase rainbows. My PF is boring now. After getting burnt on a few high risk small caps I've completely changed my strategy. I now buy small and often in mainly FTSE 100 but some 250 companies, and then about a 1/3 in US tech. But I buy them when they are down and top up every now and again on dips and have a long term horizon. I haven't had to sell anything either using this strategy, just build and build.

I've recouped more or less my earlier losses this year using this strategy. Still holding 90% loss in SNG and around 65% loss in 888 after it bought William Hill. I'm holding SNG as a reminder never to touch a small cap stock again.

If it was that simple the likes of the FT would never be able to publish a story.

Plus I'm pretty sure we discussed this yesterday and provided the information is lawful (which in this case it now clearly was) journalists are covered by the freedom of the press, public interest, etc, etc.

"Chapter 11 is an American thing. Not legal in the U.K.. so they will need to do a CVA. As You have to be insolvent to go bankrupt."

The RNS specifically states that the UK business is included in the C11.

'Chapter 11 restructuring process involves entities that are engaged in Cineworld's US, UK and Jersey businesses; businesses in all other territories remain unaffected'

Well we don't know the source, it might not have come from directly inside.

A lot of people would have been working on this, rumour mill, etc, etc.

120 days to agree the plan. Think the RNS mentioned Q1 2023 for coming out.

"Hexam, I agree with your assessment of newco, however existing assets isn’t an option and neither is not getting every creditor onboard. This is a lot more complicated then most think and that is a huge advantage to mooky. We will see how it progresses, I hope you are making some good money trading this meanwhile. ATB"

Poor - I would argue that it's the complications of the deals (leveraged takeovers, regal dissenting shareholders and cineplex bodged takeover) that have got the company in this mess in the first place. He is now trying to salvage something with the sharks circling.

I doubt his hand is all that strong.

"Will Mooky & Co agree to give away his E…?"

He won't have a choice as all shares are ranked pari pass (all equal). As I mentioned earlier the courts are in control now. His job it to try and sort this transaction out and keep the business operational so it has the best chance of coming out of this.

Plus if the FT is to be believed those shares have been leveraged against family borrowings, margin loans, etc, so the probable likelihood is they are some bank or hedge funds security anyway.

Exactly Hexam - Newco will be worth significantly more because it won't have the massive debt around its neck. In theory it should be the NPV of the future cashflows less whatever debt is to be retained if you're using a conventional investment type model.

Poor - this is what the debt holders receive for taking a haircut on the current level of debt.

Hexam - to come back on your debt point - I think the £1.9bn will be the Newco base plus whatever other funding can be secured from whatever arrangement is made post deleveraging.

Ian doesn't know his arse from his elbow ....

I'm not assuming anything ... the company has now told you three times by RNS that this is about to happen mate.

Multiple lenders - all with different power and precedence when it comes to the re-organisation.

Think of it like being a majority shareholder - he who holds the biggest debt with the highest place on the queue holds the most power and takes the biggest slice (and also the biggest haircut), but will enjoy the biggest benefits in newco, if they are interested.

..... Looks like she had it bang on after all.

Eh?

Hexam - This is the part I am currently researching. It seems unfathomable that lenders would increase the debt further by £1.9bn, it makes no economic sense what so ever. You're talking a 40% increase in the baseline debt for a company that is pretty much declaring bankruptcy.

I think this will be starting position for Newco and pole position for whoever is funding it.

Poor - this is the point I think you have failed to grasp through this whole episode. CINE will come out of this with a completely different capital structure. They are about to try and negotiate down around £7bn worth of debt and lease obligations and retain funding of £1.9bn.

They will do this by issuing equity like confetti (think SYME on acid), the company may end up with completely new owners all together (hence the company not ruling wipeout for existing holders).

I've been reading about DIP financing and it looks like it's commonly used by lenders to position themselves ahead of the pack in terms of making a play for the equity in the re-organised company, ie. the secured lenders are making their play for Newco.

"Lenders can only take the ability to take shares at a later date. No way would anyone lend a billion for a company worth under 50 million."

Ian - the creditors will not be looking at the value of the business today. They will be looking at streamlined Newco where they are the majority holders and it's cash flow going forwards.