Member Info for WolfofWarks

The equity will be moved to a new company owned by the lenders group and what happens to the plc shares remains to be seen but the company would effectively become a shell i believe.

Tegop - how do a group of PIs go about raising $450m?

Do you realise how insane that is?

Firstly the $500m is one analysts view from a news article, the reality is you have no idea how much it’s worth. We don’t even know how much money it is making. Secondly you don’t know the terms behind the debt being transferred to the DIP and whether it is in fact debt free. These deals have been written by some of the best corporate lawyers in the land. Thirdly, and this one did make me chuckle how on earth are you going to raise $450m?

These offers for ROW are likely to be sealed bids right? Or NDAs, etc.

Put simply if you borrow money (eg mortgage) and don’t make payments on time the bank calls their debt in which they have security over.

You talk about the BOD surrendering to the lenders. I have maintained from the outset that the board have never had that much power. The lenders have always had control of this process by virtue of how much they are owed and more importantly the power in the voting % they hold.

They have complete and absolute control of the process to the point where the BOD are telling us that if the plan is not voted through it’s basically C7.

Who gets first pick of the carcass then? The lenders ….

Stanley - ROW is not debt free. It’s been subordinated to the DIP lenders. That’s what part of the $1.94bn was for.

Of course they will. Just like the bank will take your house from you if you don't pay your mortgage. it's just the corporate equivalent being played out.

I'm not trying to convince anyone of anything. It's all in black and white over and over again. It's you guys who are trying to do all the convincing,

We're going to end up with an even worse any business, anti wealth government.

Do you honestly believe a Labour government will step in to help shareholders here? That's not very working class.

The interesting thing about this ROW situation is people's complete disregard for learning what is actually going on here. The plan documents are absolutely explicit in the fact that no benefit of ROW was ever going to accrue to shareholders. Like Hexam said any proceeds received were going to contra off the initial exit financing. It looks like bids were so low the lenders value the FCF more.

You can't be $6bn in secured debt and expect that part of the business can be peeled off and paid to shareholders. It's not in the slightest bit economically viable, let alone the board haven't got the distributable profits to pay a dividend even if they wanted to.

The company is worth more than it's current liabilities. The problem is it's worth no where near its long term liabilities.

This isn't a two sided court process, it's not a murder trial, it's not innocent vs guilty. It's a supervisory process for the courts to make sure all claims are heard and that the bankruptcy process is followed correctly.

‘maidit, just be careful with such statements. Wolf will come and tell you that lenders have "lost billions" and that their money is more important than your money and shareholders got wiped out on fair terms.’

That cheeky little wolf fella would have been absolutely spot on :)

The alternative is C7, loss of jobs, taxes, etc, etc.

If I was a gambling man I would suggest that a share that is suspended due to issues around imminent chapter 11 approval confirmation has a strong chance of not coming back on the market if you were to think about it rationally.

That said I’m not all up in the FCA rules so I’ll stick that caveat in.

HI Hexam - I think in the first instance the lenders are putting it up and then running a marketing process to presumably flog the debt with a back stop that they pick up the tab if it's unsuccessful and 7% holding as a fee.

At leats that's what I think the RNS is saying! Maybe Ian can decipher it for us :)

Think about though Hexam - the owners own the debt - so those heavy interest payments are to themselves.

Wooden dollars!

So with the much reduced debt load, presumably at more reasonable terms they should be okay going forward providing the recovery motors along.

Superdry is basically dad fashion how. Great quality stuff but the brand is very tired and needs a massive revamp.

I haven't bought anything for years.

PP1 it doesnt matter how many shares are in issue as they are relative to the underlying value of a single share.

Let's say you have two companies both with a market cap of £100m, one has 100m shares valued at £1 per share, the other has 10m shares valued at £10 per share.

Are you saying the second company has more chance of a successful raise?

So if my sums are right there's about $500m of liquidity going in:

$1.4bn new loans
$800m new equity
$200m RCF
Less
$1.9bn DIP

I wonder how many of the ad hoc lenders are in this going froward? I'm assuming there won't be twenty of them and they've probably reached their own settlement amongst themselves.

Ian - The point is without the debt they don't need to pump in new money, only working capital which is the $800m rights issue and I think they have a RCF for about $200m iirc. I haven't looked into the exact details of the $1.43b and how it is constructed but I'm assuming it's wooden money after all the various repayments have sloshed round the pot, ROW sold, etc.

Maid - It's unlikely that anyone is going to be alright. The reason the likes of Barclays, IG, etc, are. not shouting from the rooftops is that they don't own the shares. When you use a mainstream broker to buy shares they buy them in their name and allocate them to you as a nominee. That's why they appear on block on the share registers. So for example IG might own 2% of the company but they'll be say 10,000 PIs underneath they are holding on behalf of.

Simple answer here for me is buy each month so your smoothing down the ups and downs of the volatility.