Member Info for WolfofWarks

You're talking in riddles.

What AGM? What is an SPA?

Tegop - will you please explain what you think you have discovered?

This is looking very temping again

'They are entering a deal to exchange debt to equity in a newco that will own the group chapter 11 companies' assets. More of a stripdown than a rescue.'

Tegop - It will own all assets not just those in C11. C11 is just a mechanism so that the company cannot be sued. As I said before the securities and liens were negotiated at the outset of financing and bolstered during the COVID rescue and have been ramped up by the DIP in which the ad hoc lenders took pole position in terms of payback. It the point these financing deals were arranged these large institutions did not think 'lets leave the ROW assets out'.

I'll never tell anyone to buy or sell, only that your investment case is paper thin.

Tegop - that’s because they are rescuing the company.

Mooky can buy all the shares he want - he’ll still owe $6bn to the lenders.

This needs to break before it can be fixed.

Togo - listen mate you are kidding yourself here. There will be no assets left - the company have told you as much on multiple occasions. The amount owed compared to assets is too vast.

The only reason ROW was excluded from the C11 was because of legal and multi jurisdictional reasons issues its implementation in the process overly complex, it says so much in the opening dockets. But their debt is still fixed to the DIP which is owned and controlled by the ad hoc group.

It does not take it off the table in terms of recompensing the lenders.

They’ll be nothing left in the plx though. Everything is moving to newco. You’ve got to understand that right? What do you think CW will own after?

This security was put in place long before the C11 and is designed so that the lenders take control when this very think happened. ROW included.

The ROW that was cleared was simply moved into the DIP facility. They will own the lot.

Tegop - all honesty you’ve gone way off track. The plan itself provides for the sale of ROW.

Nothing you have said in the last post explains why the adhoc lenders don’t have security over it.

The debtor is Cineworld Plc and everything underneath it. It’s that’s simple.

'Creditors have a Lien on the Debtor's assets. '

Yes and ROW is one of those assets.

The only bits of the group they don't want are the holding company, because everything is being moved to Newco and the Jersey financing company which we've previously established is a vehicle for the convertiable BNY Melon bond.

None of those bits left have any value and will basically be either a shell or delisted and dissolved.

Sammy - I see the resident bully has popped in for a look!

That’s irrelevant though. The debtors have lien over all the assets. The C11 just means that those groups included have a stay of execution from claims from creditors. It doesn’t reorganise who is due what in the bankruptcy.

‘ There is a window to extricate ROW in the DIP and the RSA.’

What on earth makes you think this?

Because the sanctions are not unprecedented, corrupt or indeed illegal.

I reckon the government might have had their legal team check them out ....

Tegop - for my own curiosity and you can tell me to do one if you wish but what's your investment case here now? You seem more clued up than most and are at least making an effort to try and work this all out.

The price point is to high to be able to have any real penetration in the marketplace imo. The style is also quite bland and doesn't scream premium product to me without some kind of unique use or premium brand features established. I doubt it's enough just to be a CBD product.

LBC are always playing it as well.

Maid - How are shareholders going to stump up $6bn? I'm all ears.

Mik - we live in a global world. CW is a multi national company with a brass plaque in the UK. The US is actually the biggest part of the business so makes sense to go for C11 rather than UK bankruptcy.

The facts don't change, the company is still bankrupt, so the UK part afterwards will most likely be a formality.

I think the only confusion lies with shareholders who have largely not educated themselves and what is actually happening and have only wanted to hear about fluffy clouds and unicorns.

Mr Kioto - If you're comparing Hertz have a look at what factors suddenly made Hertz an extremely valuable company again.

Hertz deal involved paying it's creditors off in full in cash as well, which clearly cannot happen here.

Ian - Microsoft was a CMA decision regarding competition and how much of the cloud gaining market they already control (60-70%) before the Activision takeover. They would be adding Call of Duty, Candy Crush and World of Warcraft to that portfolio. The EU and USA would have likely followed the UK in reaching that decision imo. We were just the first to call out.

You're not comparing apples with apples,

Maid - The problem with your asset number is that if you drill into it (look at the last annual report for an idea) you will see that it's largely made up of goodwill from the acquisitions and right of use assets - which are rolled up lease commitments on the balance sheet for accounting purposes.

CW has vet little in the way of tangible saleable assets. Plus when you are valuing a company you need to look at net assets which the assets less liabilities, not just the value of the assets on their own.

It would be like saying you are a millionaire because you have a house worth £1m but then ignoring the fact that you have a £950k mortgage. Your net worth would be £50k.

I notice in this weeks IC that Boohoo have leap frogged ASOS in the shorts list.