Litcomp Share Discussion Threads

[abc125] 02/11/2009 13:31

Who's this outfit, Medical Debenture Investments?

They seem to be soaking up the selling pressure. Up to 136000 shares.

[stegrego] 02/11/2009 09:56

Well MMs certainly dont intend on taking any shares so we are pretty much stuffed now and await the verdict.

Incredibly bizarre how this has panned out so far...

You can buy 10000 or more for 29p at the mo.

[abc125] 02/11/2009 09:35

Looking at the full text of the annual report (I have a hard copy) it clearly states that directors expect a majority of loan note holders will convert and that alternative funding arrangements would not be a problem.

Confused to say the least.

[abc125] 02/11/2009 09:23

"In the event that the offer and/or a further extension of the repayment deadline is not forthcoming, the Company will need to consider alternative funding options."

What other options have they got apart from a placing?

[egoi] 02/11/2009 08:06

Sorry guys, I'm out (wasn't a big holding). I could hang on, but too many variables now imho and some things I don't understand.

The thought of another potential delay to the bond situation was the clincher. Yes I could have waited for the 33p and probably that's what'll happen imho, but not impressed by the announcement today.

I still don't understand why the cash situation wouldn't cover the bond issue and if they had to look for alternative funding then I think things could get quite sticky.

Presumably the bondholders have said they'll wait and see how the offer transpires, but if it isn't forthcoming then they will probably want paying - I think that is clear from the wording of the statement.

good luck to all and I hope a higher offer is forthcoming for everyone. If it did drop what I'd consider too far incidentally I might consider buying back in (though with 33p on the table the mms might not drop it much). Finally i think the wider market is in for a correction which helped me make my decision.

[masurenguy] 02/11/2009 07:11

And here it is - with takeover talks still ongoing !
....................................................

RNS Number : 7325B
LitComp Plc
02 November 2009

Loan Stock Redemption

The Board of LitComp (AIM: LIN), a provider of After the Event Insurance and a national supplier of medico-legal reports, notes that it's £3,605,000 10% convertible secured loan stock 2008 ("Loan Stock") was due for redemption on 31 October 2009. £2,501,200 of the Loan Stock is currently in issue and the Company is now in technical default, albeit that it is still in advanced discussions regarding a potential offer. In the event that the offer and/or a further extension of the repayment deadline is not forthcoming, the Company will need to consider alternative funding options.

As announced on 24 September 2009, the Company is in advanced discussions with a potential offeror regarding a possible offer for the Company. No final agreement has been reached and so there can be no certainty as to whether an offer for the Company will or will not be made. As announced on 30 September 2009 and as disclosed in the Company's Annual Report and Accounts, for the year ended 31 March 2009 the potential offer includes arrangements for the potential funding of the redemption of the Loan Stock and a further announcement is expected to be made shortly.

[the big fella] 30/10/2009 15:43

Yes, an update re bond conversion / offer surely can't be far away. Whether it will be good or bad news is a matter of conjecture.

[egoi] 30/10/2009 15:42

GHF I always expected the RNS to come next week once things were 'official', so I am happy to wait a few more sessions if that's what it takes.

[glasshalfull] 30/10/2009 15:37

Been away...thought there would have been an update of sorts re. bond conversion.
31/10/09 isn't far away :-)

After hours RNS?

Regards,
GHF

[lgpixels] 27/10/2009 21:28

We could see 60p+ on the upside in the next few days.

On fundamentals this is probably the cheapest stock around, on a PE of about 1.5 and fully diluted PE of just over 3!

(upside is also supported by significant assets including lots of cash!)

let's to hope commonsense prevails from the board, shareholders and bond holders.

[masurenguy] 27/10/2009 15:52

Couple of small Sells (10K x 32.2p + 3K x 32p) on Plus but no AIM trades so far today.

[the big fella] 27/10/2009 11:45

Well, we should get some news re the bond conversion, which ultimately will be the driver for what happens with the bid. Whether it is good or bad news it won't be long.

[the big fella] 27/10/2009 11:10

Widening of spread signalling mm's expect news soon?

[glennborthwick] 23/10/2009 21:09

egoi whats your take on st helens. i think you watched them close for a while

[egoi] 23/10/2009 15:43

25k just reported at 32.28p.

Looks like someone might be betting on a more favourable outcome than 33p.

[lbo] 23/10/2009 09:23

Brit Insurance Holdings Plc is considering making opportunistic acquisitions to ensure growth



Brit positive on UK market
23 October 2009



UK insurer Brit Insurance has reported an increase in sales for the first nine months of the year, driven by rising insurance prices.

[egoi] 22/10/2009 09:40

Well, they made an RNS at end of October last year about the Loan Notes so i'd expect same by end of next week or within days after at the most; probably together with an update on the bid.

[glasshalfull] 19/10/2009 09:50

Cheers TBF.
Responded.

[the big fella] 19/10/2009 09:19

You have mail

[glasshalfull] 18/10/2009 12:07

The Big Fella

I'd appreciate contact with you off board.

[e-mail]


Regards,
GHF

[masurenguy] 17/10/2009 11:41

Not necessarily but it is a liability that the company has to be prepared to address if the Loan Note Holders decide not to convert (some or all of them) or alternatively extend the loans for a further 12 months. If they all converted, an additional 8.5m shares would have to be issued diluting existing holders by 57%.

[egoi] 17/10/2009 09:22

Masurenguy you are assuming bondholders will take the money.

If they don't there is no need for a funding, hence why there hasn't been one yet.

I suspect this 33p offer will lapse if bondholders convert to shares as there will then be no need for a funding or to accept the 33p offer, cash will be, as it is already, aplenty.

And if they take the cash then the company will imho accept the 33p, and thereby again there won't be a need for a funding from current management.

The one year extension, i hope not this time, sort it out now would be my message.

[abc125] 17/10/2009 08:56

Trout

Just re-read your post and you make a good point that this could all simply be about gamesmanship or brinkmanship - a sort of call my bluff between directors and bond holders.

To elabarate, now that the offer is out in the open, the company can put forward two options to bond holders:

1)Do you except the 33p offer?;
2)If not, will you convert your holdings, as per the original intention?;

I'm sure bond holders would prefer an option 3. Namely, a one year extension, whilst also retaining the risk free, equity/cash conversion option and a 10% coupon to boot.

But the company may want to put this to bed now....and rightly so.

A one year extension would be a bum deal imho for ordinary equity investors who would continue carrying all the risk.


edit: I like you was also a little perturbed by the june profit warning (though technically they were correct according to DSC forecasts). The potential offeror may have walked away prematurely if the shares had re-rated rapidly before settlement of the loan note redemption in october.

[masurenguy] 16/10/2009 11:04

They have a cashflow problem with the imminent loan redemptions coming due which is why they are talking to the predator. What perplexes me is WHY they have not sought a private or public placing to address this issue. THAT is the missing piece of the jigsaw that I have referred to previously !