Citius Resources Share Discussion Threads

[greatwhitefunkmaster] 11/7/2013 08:40

Assume a placing is more likely than a rights issue no?

[dazzaa] 11/7/2013 00:40

They will probably wait until the price rises to say 12p or more then have a Rights issue. Possibly.

[strutt12] 10/7/2013 11:55

But at what price?? ;-)

DYOR

[freddie ferret] 10/7/2013 11:27

Seems there is a rights issue on the way.

[dazzaa] 09/7/2013 22:31

Churchill was right it just took a few tears sorry years.

[freddie ferret] 09/7/2013 18:08

Nice clarifying RNS, bit peed off that the offer is up but the bid barely moved on L2.

[jeffian] 09/7/2013 13:38

"We" (CRES) do. "They" (UKC) don't.

[strutt12] 09/7/2013 13:31

So we don't have to pay back £3.5 Million owed????????

"However, as previously announced, CfR plc retained liability from the restructure in December 2012 for professional fees incurred in 2012 of cGBP3.5 million, which were due to be reimbursed by Mine Holdings and substantially paid before now. Recovery from the administrator is expected to be very limited. The only continuing residual liability of CfR plc related to Mine Holdings is an annual payment of GBP189,000 to a small pension plan for the former Blenkinsopp colliery. The economic burden of this liability has been taken on by the new mining companies and liability of CfR plc for this scheme has been secured by a charge on the freehold of the on-going deep mines.

As recently announced, CfR plc secured a GBP5 million bank facility to meet the residual liabilities for fees, which are in the process of being settled. The banking facility has been granted on the basis of a limited guarantee to Lloyds from the Company's largest shareholder, the Peel Group, and also on the basis that the Company will carry out an equity fundraising to repay the facility. CfR plc expects to undertake the fundraising in the next few months. The Peel Group has offered further support to the Company by agreeing, subject to the satisfaction of certain conditions, to underwrite the fundraising.

[dazzaa] 08/7/2013 18:24

Now this is not the end nor is it the beginning of the end but the end of the beginning. Possibly

[freddie ferret] 08/7/2013 17:46

Ummmm interesting.

[strutt12] 07/7/2013 16:01

UK Coal Operations, the country's biggest coal producer, is expected to go into administration this week before being taken under the control of the Pension Protection Fund. The PPF is expected to take on eight coal mines as well as the pension liability of £550 million under the deal. UK Coal Operations was formed in December when UK Coal split its mining and property arms.

Pensions of coal workers employed by the struggling UK Coal Operations are set to be safeguarded under plans drawn up by the Pensions Protection Fund
The company is owned by the miners' pension scheme which also controls 74 per cent of Harworth Estates, its property development arm, which has about £250 million of assets.
Plans to plug the pension deficit failed after the company's biggest mine, Daw Mill in Warwickshire, was closed in March following a devastating fire.
It is an unprecedented move for the Government-backed PPF, which was set up to pay compensation to members of underfunded or insolvent pension schemes through a levy on pension funds.
Though the PPF is responsible for bailing out struggling pension schemes it does not normally take control of the companies supporting those pension schemes.
The aim is to keep the company operating, safeguarding the jobs of 2,000 miners and the income of 6,800 pensioners. Retired miners under the age of 60 will face a 10 per cent cut in their pensions under the plan.
'Our role is to protect the interests of pension scheme members and minimise any resulting costs to our levy payers,' said a spokesman for the PPF.
Chris Kitchen, general secretary of the NUM, said the plan under discussion would see the PPF take majority control of UK Coal Operation.
He added: 'The plan is for the PPF to take over 90 per cent of it, including the mines which are economically viable.'

[strutt12] 05/7/2013 08:18

Dazzaa,

As I see it, the press release about UK Coal going into administration is scary reading for people who don't understand the business now, also the fact CRES have said they need to raise 3.6 Million to cover costs of the restructuring also makes scary reading. What do people do when they are scared or don't understand, correct they sell!! those who have done their research and understand the true value here, well!!! BUY ON FEAR, SELL ON GREED

DYOR

[dazzaa] 04/7/2013 15:51

Ok we are where we are, I just feel neglected bouncing along the gutter and nobody want to sweep me up!

If the assets are above 3p which on paper they are why are we not seeing at least some movement in the right direction is there other scenarios not yet discussed here that is staying any movement?

[the troll] 04/7/2013 15:24

the PF trustees can sell that 75.1% stake in Harworth Est. to whomsoever they please ? whilst CRES's minority shareholding wouldn't, in theory, be affected, you might see a re-rating of CRES stock if a more aggressive developer were to come aboard ?

& if the discount to NAV @ 3p is really as steep as has been suggested, you really can't rule this scenario out. might Peel themselves have a go ?

[badger1963] 02/7/2013 19:34

rns within 10 days news from uk coal at same time

[strutt12] 02/7/2013 17:02

Funkmaster,

Because the Pension fund knows the true value of their holding and will not let it go on the cheap, bear in mind that Peel only own 29% of 24.9%. They have also stated that they WILL underwrite any fund raising so lets just wait and see what the terms are, who's to say they aren't at a higher price to today's???

[jeffian] 02/7/2013 15:50

greatwhite,
I'd been thinking just the same thing, though not necessarily "at a couple of pence higher than the current price". Under the old UKC set-up, Peel were nicely in control of the situation. As a minority holder in a company 75% controlled by a distressed pension fund, things are a bit more unpredictable for them. A takeover might suit both parties as it gives certainty to Peel and much-needed cash to the pension fund today, rather the promise of undefined returns over a much longer period.

[ivancampo] 02/7/2013 15:45

The problem is the further dilution from the fund raising, Peel will be a beneficiary and will get a further chunk on the cheap. Nothing wrong with the medium term view as discussed here.

[greatwhitefunkmaster] 02/7/2013 15:38

If it was a no brainer why wouldn't Peel just swoop for the lot at a couple of pence higher than the current price?

Still holding.

[freddie ferret] 02/7/2013 14:01

OK I will qualify my previous post with the comment that we only own 24.9% of the land bank. My previous comments are correct in that Daw Mill is not relevant and its loss does not effect us, also we are not liable. The split took place before the Daw Mill fire.

I would repeat Coalfield Resources is not a mining company and should have been named the "Property Asset Stripping and Redevelopment Company".

[strutt12] 02/7/2013 13:19

Badger,

Here is it in black and white!!

Following the announcement of our decision to restructure on 14 March 2012, we finally achieved a complex solvent restructuring, involving thirty nine steps and over 2,000 contractual documents on 10 December 2012. This dismantled the legacy of the British Coal structure and privatisation in 1994 and separated the Group into three parts: UK Coal Mine Holdings Ltd ("Mine Holdings"), Harworth Estates Property Group Ltd ("Harworth Estates") and Coalfield Resources plc ("the Company"). The largest share of value went to the Mining Division Sections of the Industry-Wide Pension Schemes ("Pension Schemes"), as the largest creditor of the Group.

The process involved the agreement of our principal banking partners, Lloyds Banking Group, together with Barclays Bank, and of the Pension Schemes, the Pensions Regulator, our four key generator customers, the Department of Energy and Climate Change and the Coal Authority. The restructuring was completed on 10 December 2012 to create a more stable platform for the Company, Harworth Estates and Mine Holdings to continue.

The principal value in the Company now relates to the 24.9% interest in Harworth Estates. The value of the portfolio of Harworth Estates, on a 100% basis, is carried at GBP260.1m on which Harworth Estates carries debt of GBP75.3m. The portfolio is largely of former coalfield land for development, and the intention is to seek long term value through development on which a good start has been made in the last 18 months with the sales outlined below.

[badger1963] 02/7/2013 13:00

Strutt12 I thought the same but am having a few doubts about PPF involvement and Cres keeping ownership of 24.9% Harworth
are we confident that this will not change
loafobread also agree with what you say

[loafofbread] 02/7/2013 12:10

Agree.

20p of assets for 3p.

[strutt12] 02/7/2013 10:51

Badger,

The PPF will take over the 75.1% stake and Coalfield will be a co owner as before with our 24.9% stake last valued at just under £50 Million