Biofuels Share Discussion Threads

[hercy2] 04/8/2007 09:25

should it not be £40m x 94%?

[boffster] 04/8/2007 09:23

Crude (probably too crude) estimate of 'fair value' for Earls Nook Ltd:

Barclays wrote off £40m of debt in exhchange for 94% equity
Therefore entire enterprise value = 40 / 0.94 = £42.55m
Therefore Earls Nook Ltd. holding is worth £2.55m
Earls Nook shares in issue = 49.51m
Value per share = 2.55 / 49.51 = 5.1p per share

The above is probably far too simplistic but I can't see how barclays could put the fair value as much less than this, in the event of a complusory purchase.

[baskett3] 02/8/2007 18:09

BFCT'S ASSET OF COURSE.

[baskett3] 02/8/2007 18:07

and don't forget the asset of circa £30 million of tax credits sitting there for when ot starts to make a profit.

[cheshiremoggie] 02/8/2007 16:53

OK, fair enough.

[paul e] 02/8/2007 16:44

CM you're wrong :) . The debt went to BFCT along with all of the "assets" (ie the plant and a few pcs).

BFCT will now have debts of £60m.

Earls nook has a 6% holding in BFCT

[cheshiremoggie] 02/8/2007 16:11

Aha, maybe I'm wrong? Does it refer to Earls Nook or the new trading company though?

CM.

[boffster] 02/8/2007 15:12

I'm not entirely certain that 'Earls Nook' still owes 60m to Barclays. This paragraph from the Final Results suggests to me that the debt has been written off:

"In exchange, Barclays will release the
Company from its obligations to repay the £97.1 million of debt and will provide
sufficient funds to pay its creditors at the date at which the proposed
transaction is concluded."

[rebess] 02/8/2007 15:10

Do yer know what, even Post Mortem this is still a good thread to visit.
In one sense it would be good for it to remain as a thread beyond the grave.

[cheshiremoggie] 02/8/2007 14:24

As far as I understand it people still invested in BFC now own 100% of Earls Nook.
Earls Nooks only asset is 6% of the new Biofuels company.

However, Earls Nook owes £60,000,000+ to Barclays and so isnt doing too well.
This means that the new Biofuels company has no debt and Barclays can sell it unencumbered by debt. Nice.
However Earls Nook is stuffed, particularly as the interest will be mounting up.

IF Barclays can sell the refinery so that 6% of the company is worth, say £75m by that time to pay the debt then shareholders will get whats left.

SO Barclays need to sell the refinery and hence the new BFC for more than £1.25 billion for shareholders to get anything back. (This is of course a guess).

Good Luck folks.

CM.

[paul e] 02/8/2007 12:15

Rebess

In the restructering docs it says BFCT will pay earls nook the admin fees necessary to remain a co.

[pierre oreilly] 02/8/2007 11:44

Yeah, good luck to everyone here in the future. It's certainly, well almost certainly, shown the good, the bad and the ugly of human nature in many, and sometimes surprising, respects.

[rebess] 02/8/2007 11:39

Just as a dying last gasp observation.
If the residual 6% that represents the shareholders stake is a seperate company in it's own right and therefore cannot be compulsory purchased, then it would have to be set up as a company with directors, articles of asociation etc. etc.and also an established share base with a determined value per share.
Presumably it would exist as a company that does not trade, that sends it's annual £10 registration fee to remain as a company, albeit non trading but would nevertheless incur some admin expenditure.
I'm wondering how all of this would work, also, what an irony if CGT is due when the company is finally sold. You could have a situation where investors are nursing substantial losses but have to pay CGT upon disposal.

[the_doctor] 02/8/2007 09:07

Frankie,

I hope you didnt have too much of your net wealth tied up in this stock and that you're in for a good run on other investments.

[nfranks] 02/8/2007 08:51

I'll second that echo (PaulE and Lordcoco) was well.

One hell of an expensive lesson for me, what I learnt was
1. Don't fall in love with a share
2. Don't invest to much money in any single share, especially on AIM
3. Cut your losses and get out if things start to slide
4. Don't believe everything the management tell you, listen to the market as well.

I'm sure there are some more!!!!

On the positive side I made a few friends as well. I'll still be popping back here now and again to see what's happening, so if you've held onto some shares in the now private Earls Nook please post any news.

Cheers, over and out from Frankie

[lordcoco] 02/8/2007 07:42

I'll echo that PaulE. BFC thread was the best on the boards. It died a while back unfortunately, now the company follows suit. R.I.P.

[paul e] 02/8/2007 07:08

Sorry you may have misunderstood, just saying goodbye and bon chance to the many on here who I've had the privilage to discourse with over the years.

[the_doctor] 02/8/2007 07:07

Bad luck holders - although I'd say that you had more than enough warning!

[tim44] 02/8/2007 07:06

HAW HAW HAW !

[paul e] 02/8/2007 07:03

And with that I would like to wish all of you all the best in your investing...

[bogg1e] 01/8/2007 23:23

Hi all, what does the companys delisting mean for shareholders? Will you receive like for like shares in the newly named company? Will the whole process be transparent to the PI? I notice that posters dont seem overly alarmed, so i assume that the PI is not getting shafted here at any rate. Thx and good luck.

[cheshiremoggie] 01/8/2007 22:08

I dont think it matters what price the shares are now. The market is closed.

CM.

[jamesclives] 01/8/2007 22:04

seems as though the mm's are 'creaming' you all.

and...

why the hell have a price monitoring after 4.30pm when markets closed - weird !

[cloggs77] 01/8/2007 20:32

Is this the Top Gear website??