Member Info for WolfofWarks

Salam - I thought the same as well. I think if the $6bn around $3.5bn is the secured facility.

Makes me think the unsecured creditors must be getting a nice slice of a newco.

Hi Penta - those two articles amount to the same thing. Once the plan goes though billions of dollars debt will be wiped from the balance sheet. The price for wiping off those billions is the company’s equity.

‘ 28
What’s your agenda here Wolf it’s like no no no it’s not that I know best !
On every day posting negativity!
Are you short in this share ?
NG1’

I’m currently waiting for my paymasters to give me my next assignment.

I’m hoping I get the gig where I pepper boards ramping down and out penny stock and encourage pained investors to lose their life and pension savings.

Rent free Sammy, rent free.

ROW is definitely being sold. They have appointed E&Y to deal with the sale - there's a court docket on it.

'Thats absolutely not what the article is saying. You need to read again after coffee.'

Patience - that's exactly what it says. What do you have in your coffee?

'Shhhh, you'll wake him up...

I'm sure by 06.30am, he'll huff and puff your thinking into tatters.'

You need to get out more Sammy.

It's not healthy letting someone live in your head rent free, as I told Elvis when he started obsessing over me.

I'll try and rise to the challenge like a Phoenix from the flames!

Sorry to hear about your job. Hopefully you move onto something bigger and better.

‘ Funds Earmarked by Section 363 Purchaser to Pay Creditors Need Not Be Distributed in Accordance With Bankruptcy Code’s Priority Scheme.

https://www.jonesday.com/en/insights/2015/11/funds-earmarked-by-section-363-purchaser-to-pay-creditors-need-not-be-distributed-in-accordance-with-bankruptcy-codes-priority-scheme’

RI - you do realise in the example you have posted it’s the secured lenders who purchased the debtors assets? You would have had a situation where the lender purchases the assets and then gets paid the money back by virtue of being first in the clue. At least try comparing apples with apples.

It’s getting like Comedy Central round here.

‘One scenario I raised which, Wolf tried to dismiss is where the BoD look at the proposal of selling RoW and obtaining a figure from an interested party which they can then discuss with the CH11 group and understand if it can be used to settle unsecured creditor, Cineplex and in turn allowing the CH11 group to agree a reduced debt for equity swap. ’

I dismissed it because it cannot be done, nor is there a need for the company to do it. What you need to understand is the company spending goes through a court approved process for post C11 monies. That’s why there are lots of dockets where the court is approving payment of wages, rents, utilities, etc. The company can only spend money on its operating costs.

It cannot sell ROW and use these proceeds to clear the CP claim because a) the claim is not an operating cost b) the claim is pre C11 and c) you cannot pick and chose payments relating to pre c11 claims and therefore prejudice one creditors claim against another.

This is why I said don’t worry about the CP claim because they’ll get cents on the dollar like the other unsecured creditors.

The CP doesn’t even rank that high in terms of preference anyway, plus they have no liens.

Juno - you made quite a deal of having me on filter yesterday. Yet today you’ve commented on my posts.

What is it the yanks say ‘Go Figure’.

Why would the debtors not allow ROW to be sold? The C11 has never been for their benefit only for the benefit of CINE.

In a bankruptcy all assets are in the table. The c11 mechanism only stops the lenders distressing on the companies assets while the process is being played out. A process whose aim is to maximise the recovery for creditors. With those particular lenders being first in the clue.

So while ROW is not included in the C11 protection (an automatic stay from litigation) it is an asset that can be sold and that is exactly what is being played out.

The difference is I cut my losers and run my winners. You on the other hand are ramping CINE, SYME & NNN.

If I was a conspiracy theorist I might think you could be in someone's paid employ ramping forlorn stocks.

'Antlev, rest of world is separate to the bankruptcy proceedings, so if rest of world is sold, shareholders ought to benefit.'

Nope - ROW is an asset of the business and the debt is owed at the plc level. The C11 for Uk and USA stops the creditors from calling the debts in. It does not mean that assets outside of the protection are protected from being sold to clear down the debt.

RI - firstly I’ve never claimed to have any kind of Midas touch. As investors we should always be learning, someone who thinks they know everything there is to know probably actually knows very little.

I’m certainly not gleeful. I’ve gone to great lengths to explain this process through out. Especially in the face of constant misinformation and at times from some posters down right lies. I’ve never lied, I’ve never made anything up. Yes I put people straight as I see it, especially if I think someone is misleading people. So I explain things as I see it using my experience, not necessarily of chapter 11 specifically but of finance generally and I have seen many debts go bad in my own work.

Some folks just prefer to listen to pristine rampers, or people who are simply telling them what they want to hear, even if it’s not financially literate.

That's what happens in a bankruptcy. The lenders always end up calling the shots and the whole process is aimed at maximising their recovery, saving jobs, etc, continuing the business as a going concern, which is nearly always at the expense of unsecured creditors and finally equity holders.

There's clearly a leak at this point. There's a constant stream of news now from quality news sources.

The new group might want to retain them in a consultancy capacity during the changeover, given their knowledge of the company and industry.

'It's the same story appeared in the TV (test scroll on the right). Either ordinary shareholders wiped out or retain some shares. #It only say the CEO's family interest of 20% being wiped out'

That's not possible. All shares rank parri pass - they carry equal weight. Which means if you get wiped out Mooky does to. I would think any compensation given to Mooky and his brother would relate to relinquishing their executive roles, loss of office, etc. Remember they have service contracts and are employees of the group.

RI - seriously mate. Pay off Cineplex. How would that work? They are an unsecured creditor - they cannot be paid off at the expense of the other creditors. I think you really need to take a good look at the mechanics of how all this works as you don't appear to have a clue and I'm saying that nicely.

You don't need to hold your breath on this going to zero - the board have told you that is expected to happen. How is the market disconnected from asset value? if you can outline to us what assets the company has it would be much appreciated. Re PE mutiliple - what earnings would you be basing this on? How much are those future earnings worth after they have been discounted for current interest rate and inflationary conditions?

I think based on this latest leak it's probably not so much a discussion around equity but the lenders moving in as it appears that the only part of the business that's remotely interesting to potential buyers is ROW and that aint gonna be fetching $6bn that's for sure.