Carpetright Share Discussion Threads

[butterflycollector] 26/9/2019 10:15

Anyone still believe this is a good investment? Watch shares drop below 8p then The suppliers asking for up front payments, landlords the same, Then the debtors recalling their loans, it’s a messy couple of weeks ahead.

[diku] 23/9/2019 23:43

What chance Meditor makes a bid at 5p when the shares are trading at 10p...




Woozle1
18 Sep '19 - 17:29 - 2007 of 2011
0   0  0



So the way this work from now, is everytime CPR need to change the banking facilities/covenants, Meditor will take a fee, either in cash or warrants/shares. Either way, I'd not want to be a shareholder.
w1

[butterflycollector] 23/9/2019 12:30

Indeed it is sad, both have a similar problem in that they buy in euros and pay 60-90 days in arrears, as pound has plummeted they will be paying more than anticipated.

[kloppite] 23/9/2019 12:03

Well there’s your answer.
Very sad for all the people losing their jobs

[butterflycollector] 20/9/2019 18:41

Who will go first? CR or Thomas Cook, both mismanaged and unsustainable

[albert3591] 20/9/2019 18:08

What are the odds CPR will be the first casualty of 2020.

[woozle1] 18/9/2019 17:29

So the way this work from now, is everytime CPR need to change the banking facilities/covenants, Meditor will take a fee, either in cash or warrants/shares. Either way, I'd not want to be a shareholder.
w1

[only who?] 18/9/2019 17:10

Under 10p. Great. Now I understand how CPR can spend so much spare cash on TV ads.

[floridamassive] 17/9/2019 16:40

CPR making moves to improve -
Carpetright plc (LON:CPR) says the transfer of around £41mln of its debts to major shareholder Meditor has been completed.

The troubled flooring retailer said the transfer of the revolving credit facility to Meditor from NatWest and Allied Irish Banks had occurred on 3 September, and as such the hedge fund had become a lender of record.

READ: Carpetright’s biggest shareholder buys £41mln of retailer’s debt
Carpetright added that Meditor had agreed in principle to postpone the due date of certain repayments until either the second business day following the grant of independent shareholder approval or 21 October, whichever fell earlier.

The firm said that a general meeting for independent shareholder approval of the debt transfer in October.

In the meantime, Carpetright said it was “comfortable” with its financial position and would have “sufficient time” to seek shareholder approval.

Carpetright announced the debt transfer deal in late August after undergoing an emergency restructuring last year to save itself from collapse.

There are signs that the turnaround plans are having the desired effect. A trading update in June showed that losses narrowed in the latest financial year, while sales have returned to growth in the opening few months of the new year.

Analysts at broker Shore Capital, which rates Carpetright at 'hold' with a target price of 12p, said the agreement would serve as “another staging post” in the company’s restructuring as it looked for a “more stable” funding platform.

[floridamassive] 17/9/2019 16:39

Agreed Boraki- this company has come a long way from the woes it was facing last year. Seems like recovery plan is working and there has been one positive news after another for the last few months. Put these in the bottom drawer for now and look at them next year when these very well could be trading around 80-90p mark ;).

[phil hennigan] 17/9/2019 16:31

If you believe that director garbage your probably gullible enough to be holding the trash.

[boraki] 17/9/2019 10:33

"The Directors are comfortable with the company's financial position and expect that this period will provide the Company with sufficient time to seek independent Shareholder approval for the continued operation of the RCF."


I suspect we are trading in line with forecasts.

:-)

[mattcookson] 16/9/2019 08:29

Borking old shorter talk from ButterflyCollector... it is always doom and gloom with him/her. Yawn yawn yawn!! LOL

[mattcookson] 16/9/2019 08:27

Agreed Borkai!!

Meanwhile.....

Mon, 16th Sep 2019 07:00
RNS Number : 3626M
Carpetright PLC
16 September 2019

Carpetright plc

("Carpetright" or the "Company")

Further debt financing update and General Meeting

16 September 2019

Introduction

On 27 August 2019, the Company announced that Meditor European Master Fund Limited ("Meditor"), which holds approximately 29.99 per cent. of the Company's issued ordinary share capital, had agreed to acquire the interests of National Westminster Bank plc ("NatWest") and AIB Group (UK) plc ("AIB" and together with NatWest, the "Banks") in the Company's £40.7 million revolving credit facility (the "RCF").

The transfer to Meditor of the Banks' interests in the RCF (the "RCF Transfer") has since taken place on 3 September 2019. Whilst the terms of the RCF and the corresponding facility agreement remain unchanged, Meditor has now become the lender of record under the RCF.

Update regarding the RCF

By virtue of its shareholding in the Company, Meditor is a related party of the Company for the purposes of the Listing Rules. Following the RCF Transfer, it has been determined that the utilisation of the RCF, including any repayment or drawdown by the Company, will now constitute a related party transaction. Accordingly, pursuant to the Listing Rules, approval by the Company's independent Shareholders (i.e. disregarding Meditor and its associates) will be required to permit the Company to continue to exercise its rights and perform its obligations under the RCF.

Meditor has therefore agreed in principle with the Company that, amongst other things, the due date for repayment of certain amounts under the RCF will be postponed until the earlier of: (i) the second business day following the grant of such independent Shareholder approval, and (ii) 21 October 2019. The Company intends to enter into full form documentation as soon as possible with respect to such arrangements.

The Directors are comfortable with the company's financial position and expect that this period will provide the Company with sufficient time to seek independent Shareholder approval for the continued operation of the RCF.

Requirement for a General Meeting

Accordingly, the Company's independent Shareholders will be asked at a general meeting of the Company (the "General Meeting") to approve the continued exercise of the Company's rights and performance of its obligations under the RCF (the "Resolution"). A circular containing details of the RCF and the Resolution, together with the notice of general meeting, will be despatched to Shareholders in due course. The Company expects the General Meeting will be held in October 2019.

[boraki] 15/9/2019 12:18

Aim11, are you referring to this.

[butterflycollector] 15/9/2019 11:37

Meditor are protecting their investment, if the foreclose they recoup the majority of assets, I see plenty spin but no substance, more stores to close as landlords start increasing rent. share price will drop under 10p in coming weeks

[boraki] 15/9/2019 11:18

The market is missing this one,,,, trust me.

Keep checking trustpilot, and you will see what I mean.

It's going to explode soon,,, you'll see

[aim11] 15/9/2019 09:52

I heard Tapi has made another big cash call to shareholders in the last week or so

[floridamassive] 14/9/2019 23:09

CPR making moves to improveToday 23:05
Myles McCormick in London AUGUST 27, 2019 - The largest shareholder in Carpetright has agreed to take on the company’s substantial debt pile and open talks over long-term funding, providing a degree of certainty to the troubled UK flooring retailer as it pushes to turn itself round.

Carpetright said on Tuesday that Meditor, a private investment vehicle controlled by former hedge fund manager Talal Shakerchi, would purchase its £40.7m revolving credit facility from its current lenders AIB and NatWest. The company was not involved in the talks between Meditor and the lending banks.

It will also provide effective funding for the two banks that provide Carpetright’s £6.5m overdrafts, NatWest and Ulster Bank, in the form of “participation agreements”.

Meditor owns a 29.9 per cent stake in Carpetright and was already an unsecured creditor, having played a pivotal role in the financial restructuring that saved the company from likely administration last year.

The revolving credit facility is secured against freehold property, giving Meditor a higher ranking in Carpetright’s capital structure. Carpetright’s freehold properties are valued at £50m.

Wilf Walsh, chief executive of Carpetright, said Meditor had been “a pretty supportive shareholder” and that the company would be discussing financing options in due course.

These could include refinancing the existing unsecured Meditor facility, which is repayable in July 2020 and carries annual interest of 18 per cent.

Carpetright has been under pressure in recent years from weak demand, an excess of selling space and stiff competition from Tapi Carpets, a privately owned rival controlled by Martin Harris, the son of Carpetright founder Philip Harris. Lord Harris sold his remaining stake in Carpetright in 2014.

After shareholders, including Meditor, stumped up £60m to stabilise Carpetright, it closed more than 90 stores using a company voluntary arrangement, a form of insolvency that allows companies to impose losses on unsecured creditors.

The emergency restructuring has begun to bear fruit, with the group this year reporting a return to sales growth and narrowing its losses. But conditions remain difficult in a market that is highly promotional, dominated by big sale events on key BHs.

[floridamassive] 14/9/2019 23:08

We have been here once before April 19 as well (when this share jumped 90% in a day) when in May 18, it went from 8.5p to 40p in 2 days. This share is know for bouncing back 300-400%, so definitely worth a punt and investing.

[boraki] 13/9/2019 15:45

I'm not doubting you bc4, but how do you know, if you do not mind me asking.

I often think they are wrong on advfn, but do not know where else to look.

B.

[bc4] 13/9/2019 13:56

Many buys reported as sells very close spread

[clocktower] 13/9/2019 12:58

The shares were artificially high for far to many years when the company was controlled by Lord Harris, and should have been parted with well before he sold.

the chance of the current board getting any rewards from those share awards are pretty limited imo.