Oops - a certain AH cultist shot himself in the mouth! Fancy rubbishing the words of AH himself!
SCFHA being generously supplied at 11.5c. Tells its own tale, doesn't it?
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Yes !! I think Michael Warrington made a really interesting point in his report today regarding the call option SCF010 and 020 holders have if there's an effective change of control at SCF. Basically holders of these notes can ask for their redemption if effective control passes, i.e. Southbury no longer holds a majority shareholding. Its impossible to imagine that SCF ord's have much value at all and only the most extreme cultists fail to realise that SCF needs at the absolute minimum $200 million to at least keep going, so a change of controlling shareholding looks almost certain,. that's if anyone is brave enough, (should that read stupid enough) to step up to the plate, which in my opinion is exceptionally unlikely. Of couse the loss carried forward rules mean that any change of majority shareholding wipes out all those tax losses, so that kisses goodbye to about $100 million of so called asset on the balance sheet. Still that's no real loss as in my opinion, this figure is allready highly questionable.
Enumerate, I think you'll find it was AH himself that introduced the term kosher to this thread.
BTW what happened to your disclaimer?
Realization of NPD per chance?
(jeez must be a slow typist - already at ya ER)
Roger, what are the chances that Torchlight is in talks with the government about paying them to take it off their hands?
http://www.nzherald.co.nz/business/n...ectid=10664377
"Exposing Unacceptable Financial Activities (EUFA), a body which campaigns on behalf of investors burned in finance company collapses."
What are the true values of this crowd?
What if his entities are found to be just like the many others?
Fools rush in......
If you had actually understood the "equity injection" figure of $950million, you quoted earlier - you would find that the bulk of these funds were refinancing of these debt instruments - hardly new equity.
Before you get too paniced - Southbury, itself, could be the investment vehicle that is sold. Sale of the "Good Bank" loan book would also not trigger the Trust Deed covenants. In short, the Warrington scenario and prognosis for refinancing is simply the idle musings of a small town financial adviser. Another trap for those with weak minds and a nervous disposition.
"SCF wanted to sell the business as a whole rather than carve it up" - pretty sums up what SCF is desperately trying to do versus the attitude of the "investors' looking over SCF.
http://www.stuff.co.nz/business/indu...erbury-Finance
Deadline looms for South Canterbury Finance
By MARTA STEEMAN - BusinessDay.co.nz Last updated 05:00 10/08/2010
Cash-strapped South Canterbury Finance will announce in three weeks whether it has forged a deal with investors to inject new capital.
August 31 is the date at which a waiver from breaches of its trust deed by the trustee, Trustee Executors, expires.
The trustee, Yogesh Mody, of Trustee Executors, said yesterday that SCF needed cash to bring it back into compliance with its trust deed.
While SCF had not defaulted on repayments to its debenture holders, it was in breach of its trust deed and had been granted a waiver by the trustee until August 31.
He said the trustee could call a default without a payment default to debenture holders "because currently they [SCF] are in breach of their trust deed in any event".
"They have insufficient capital for the types of business they are operating in, so we are absolutely entitled to take enforcement action and we have chosen not to. We did that back in February fundamentally as a quid pro quo for receipt of the extra assets [Helicopters and Scales Corporation]."
The trustee and investors were now awaiting the recapitalisation plan.
"It would be fair to say they [SCF] are well aware of the time frames, and they are working feverishly towards them."
SCF will also be releasing its financial result for the year to June 2010 on August 31.
SCF chief executive Sandy Maier said yesterday that progress was being made towards recapitalisation.
"We still have a number of parties in negotiations. We haven't lost anybody. We are closing in on time and detail. We are still headed for an announcement on August 31," he said.
SCF was geared up to meet that time frame.
"Part of that depends on the investors themselves but everyone understands the timetable and deadlines," Maier said.
The number of investors interested had increased but he was unwilling to provide the number.
"It's getting to be a pretty solid list and hopefully one of them will come up with something that is doable."
SCF wanted to sell the business as a whole rather than carve it up. One of the factors was to preserve the tax losses that could be used later if there was a certain continuity of ownership but he said that was not the primary driver.
If SCF sells more than $200m of assets, that requires the approval of the Torchlight Security Trustee which has lent SCF $100m. Maier said that was just normal commercial control of an investor. If approval was difficult to obtain then Torchlight could be repaid.
Can't say I'm a follower of Chris Lee so his musings (and those of his staff) are a bit beyond me. However it strikes me Enumerate that you don't rate small town financial advisors. Just so we are clear how do you rate Timaru - I'd always thought it was a kinda small town. Sure it had its own financial advisors but the advantages were plain for investors when they could also rely on that small towns auditors as well as the local friendly accountant. I guess if we are to rate advisors on the size of their metropolis then I'd have to be checking out Forstyh Barr here in Christchurch - except I ditched them many years ago.
Hawera is a pretty small town I think ... whose HQ is there