R&q Insurance Share Discussion Threads

[researchguru1] 24/4/2024 23:26

I’m not a member of the London South East BB. To this end, could somebody please post below on the platform, and specifically for the attention of the ‘financially illiterate’ muppets on that BB deliberately misleading newbies by spinning today’s 17:40 RNS as ‘Excellent’.


For the record, and to be absolutely clear, R&Q Insurance Holdings is selling its 49% interest of the Corporate Liabilities Joint Venture to Obra Capital Management for £21.5m ($27m). The proceeds will be used to pay down the group's Revolving Credit Facility and retaining cash in regulated entities.

R&Q Insurance Holdings is also selling its fully-owned subsidiary Randall & Quilter America Holding Inc. (holding company of the Accredited business) to Onex Corporation. Net cash proceeds on closing are now expected to be between £52 – £88m ($65 – $110m).

The net cash proceeds will be used to pay down a fraction of the company’s enormous debt of £267m ($333m as of the 30 June 2023), which includes the group's Revolving Credit Facility as well as subordinated notes. Annual interest being paid on the debt is £12.4m ($15.9m).

So basically, THE COMPANY IS IN MAJOR FINANCIAL DISTRESS; even after receipt of the net proceeds (from both sales) which won't be enough to steady the ship.

The significant reduction in cash proceeds is down to the business continuing to haemorrhage cash at alarming levels.

More importantly, and PRIVATE INVESTORS REALLY NEED TO MAKE A NOTE OF THIS, the company is engaged in INTENSIVE DISCUSSIONS with its lenders and regulators with a view to the approval and implementation of the sale.

In other words, THE LENDERS ARE YET TO APPROVE THE SALE. And judging by the company’s horrendous performance, the lenders may choose alternative options to protect their interest, and other secured creditors’ interests. Those options are unlikely to recover any value for equity holders.







.

[foreverbull] 24/4/2024 19:29

Ridiculous update ... they've spent half of the sales proceeds already

[washingmachine] 24/4/2024 19:02

It’s over for equity holders
Unfortunately

[giltedge1] 24/4/2024 18:09

Is this the company that Mark Slater turned down a £400m takeover bid?, saying not enough. Also has a large stake in Bens Creek, enough said.

[simon gordon] 23/4/2024 12:12

Royalles,

It is patently visible that the Legacy business is being set up for a run-off type of administration.

There is no value for equity holders.

[fx analyst] 23/4/2024 12:05

Nice looking L2 now - some big orders going through

[royalles] 23/4/2024 11:18

Simon - i think more likely it will be sold as a whole and possibly bought out by one of the regional big boys.In terms of returns to shareholders i would guess somewhere in excess of 18p upto 31p a share.

Is all due to be resolved during Q2 so is very much game on to buy current cheapies IMO

[simon gordon] 23/4/2024 10:45

With the two new non-execs being specialists in restructuring it looks like the company could be turned into an unlisted SPV as they work through the legacy of Messrs Randall & Quilter.

Still can't get over that Phoenix and Slater blocked 170p.

[fx analyst] 23/4/2024 10:44

Tia,check out what the telegram group is saying :-) it is looking very very good indeed.





Tia01- 22 Apr '24 - 11:10 - 1468 of 1471

Is this on the verge of a big bounce. Plenty of buying in shares at these low prices!!!!!!

[red ninja] 23/4/2024 10:39

Mmm Dantee, you appear to be telling me it is dirt cheap, but no sign of funds or anybody with credibility buying, just mug punters.

[dantee] 23/4/2024 08:48

When that RNS lands this will do a minimum 15 bag quickly IMVHO

Could land at any moment too !

[red ninja] 22/4/2024 13:26

The question for me is can they stop the significant losses ?

[tia01] 22/4/2024 11:10

Is this on the verge of a big bounce. Plenty of buying in shares at these low prices!!!!!!

[profit7] 16/4/2024 14:49

$500m sale this Quarter
Mcap £10m

Do one mms this should be 40p

Because 60p on sale

[sbb1x] 08/2/2024 11:56

4.50 on the bid, any chance of a turn around here.....

[foreverbull] 02/2/2024 16:50

Looks like this is going towards (sad) demise !

[sbb1x] 23/1/2024 11:47

New 52 week low

[catabrit] 22/12/2023 09:56

More bad news. I just do not know how the average PI can underwrite the risk reward of this thing.

[controlledmadness] 14/12/2023 09:03

This deal seems bad. The items that R&Q are committed to from the purchase price seem to be there to make the price sound better.
I can almost understand the load of 46 million having to be repaid .
The capital contribution to Accredited should come with some value like shares or be made by the buyer.
I am not sure what the extra collateral is for but if it is accredited then the buyer should be paying it.
The assumed debt 0f 27 million from accredited should not left with accredited.
So at best 27+76 million =103 million should be deducted from the purchase price with the buyer just giving the money to Accredited.
So the purchase price is actually 362 million.
If the collateral is for Accredited then another 40-80 million need to be deducted from the purchase price.

[sbb1x] 17/11/2023 15:48

Up 18 percent and no posts...

[topvest] 15/11/2023 14:12

Very interesting developments here. I did well out of this by backing Ken Randall and exiting when he did. Phoenix and Slater thought they new best and have come thoroughly unstuck. I wonder whether Ken Randall may be tempted back? He would need to buy one of the larger holders shares first. It's back to what it was, with the legacy business, at 1/10th of the price!

[hybrasil] 24/10/2023 18:35

Yes a friend sent me that article.
I made good money historically from R&Q. Having read that article I decided it was barge pole material

[simon gordon] 24/10/2023 16:02

Here's how the Insurer is covering it, article is paywalled:

R&Q sells the Accredited crown jewels but proceeds represent only half of debt

The $465mn enterprise value put on Accredited in its proposed sale to Onex Partners appears to be broadly in line with expectations, but net cash proceeds available to R&Q after the deal closes may cover as little as half of the beleaguered parent’s debt, analysis by The Insurer shows.