Member Info for WolfofWarks

I assume with Cotton being a commodity that Boohoo would forward buy, hedge, etc.

I work for a group with around 300 tier A/B suppliers who we have an annual negotiation with. The starting point is always more discount and rebate and/or tiered rebate, especially if you have increased your spend with them substantially within the last year.

This is no different to what the supermarkets, retailers and buying groups are doing on a continual basis,

'Valuations are affected by uncertainty, the time frame of the recovery back to normal has been a problem but it is quickly changing. If a sale was to happen even 6 months from now it could be very different to the bids we got.'

That would depend on wether this renewed optimism converts into cash money, or like in the case of the Avatar 2 enthusiasm it turns out to be a dud.

In times of high inflation and high interests rates profit and cash in wanted today, not tomorrow.

I reckon the lenders have probably got their own negotiation and settlement going on with this two or three big players emerging with the newco.

Whether or not lenders want ROW depends on the offers that were places. The BOD seem to think they were lowball.

Hexam is correct. I never said CW was worthless just that it’s not worth more than the debt using any conventional valuation method.

I’m not divorced yet!

Stanley - if cineworld was worth more than the debt someone would have bought it. It’s as simply at that. There is no rational basis of valuation where it is worth more than $6bn.

It has no assets other than goodwill and lease obligations, doesn’t make any money and has a uncertain roadmap to profitability. Even if it was profitable if you discounted that income in the current macro environment the future free cash flows in the medium term would be measly.

I’d love to know on what basis you think this is worth more than the debt other than hopium.

Next virtually push you online due to the crap availability of stock within the stores for anyone that’s of average size.

I remember all these discussions during and after covid. While there has been a pull back from online post covid the underlying trend is very much in one direction

If you live in a town in the UK there are very little places to shop for men. My local high street has superdry, fat face and next. That’s it.

Stanley - that's ridiculous. This is Cine's mess not the lenders. Why would they foot the bill?

I'm sure if you wife had an affair and left you I doubt you'll be chomping at the the bit to pick up the bill for her divorce lawyer.

Maid - If that's your thesis you might want to have a look at what those $20bn represent, or not as the case may be.

The time for shareholders to try and put together a committee was September. They are trying to act after the horse has bolted because back in September they didn't want to hear that the company was in bankruptcy and shouted down anyone who tried to explain the situation to them.

Hexam - remember the hours spent trying to educate Jeff? Ian thinking HSBC and bank of Israel were the lenders, etc, etc.

If it fell into chapter 7 it would go to the lenders anyway as they have first lien.

Every road is a circular reference back to them.

Cineworld is a collection of companies that are registered all over the world. The company that owns all those companies, the holding company, is the plc which is registered in the UK and listed on the LSE.

Maid - I'm almost certain there are no pension funds holding these shares.

You couldn't make it up lol

Not too sure how I’ve made the numpty list :)

Most CW customers probably don’t even know all this is happening.

Basically the financing deal that will bring the company out of bankruptcy has now been approved by the judge.

I suspect from here the rubber stamping of the plan is a mere formality.

This is the judge playing his supervisory role. Making sure that there is a fair agreement between the parties that have the power of decision so that the company can continue, jobs saved, etc.

'To be honest though, surely the guys at the top of the company should be confident enough in their ability to write, read and the publish the results. Surely theyre clever enough. I understand the rules and regs. But come on'

It's the independent verification and opinion of 'true and fair view' that gives them credibility. Without it they could be presenting any old tosh.

Hi David

Most advanced economies have a double taxation treaty so they get credit for any tax paid in other overseas jurisdictions, but as a principle you pay on all your income in the country where you are tax resident. Which is why most of the big tech companies have their eurpeean bases in Ireland where the corporate tax rate is the lowest whilst still being in the EU.

They receive a special license to enable them to pay tax in the UK. I'm sure I read it somewhere in the last earnings update.

They are tax resident in the UK though which means they have to (in theory) pay UK tax on their global income.