Coca-cola Hbc Share Discussion Threads

[soggy] 20/12/2007 08:34

Confused - is your take on it that it actually happened? The wording of the RNS certainly seems to say it would be done, but there's nothing since which would confirm or deny that GmbH was indeed hived off and "protected" by selling it to Erin for $1.

Or to ask it another way, does anyone have any reason to believe that the didn't sell it off?

[confusedcoalboy] 19/12/2007 22:13

I think it was as you assume Soggy, to move the assets away from the company on a (we shall see) temporary basis until the house is back in order. Then the banks would have no option but to give CCH time if they wanted their money back. I think.

[soggy] 19/12/2007 21:11

I think the selling off of GmbH was a device to get the bank(s) to back off - something like, "if you come after us for all the money now we'll sell the business off to one guy. He'll declare himself bankrupt and you'll not get much back for years and you'll spend millions trying to get it. But if you negotiate with us we'll get you 10% now and agree to pay you more in time"

Or something like that. Perhaps someone more knowledgeable about the world of high finance can explain what the $1 sale actually achieved, if it is what happened.

[soggy] 19/12/2007 21:07

I have never figured out exactly who owes who what, but the original RNS talks about total sums of $500m being demanded back by the bank(s). Even the part which says the bank has been paid $50m says that CCH owes them $100m.

But how much of it is owed by CCH or CCH GmbH, and how much of it has already been funnelled out, and how much is protected by this device of selling off GmbH I just don't know. But here's the text from the RNS which talks about the total sums involved.

RNS Number:0970E
19 September 2007
CCH International plc
("CCH" or the "Company")

Re Suspension


...These discussions were necessitated as a result of one of the
Company's funding banks ("the First Bank") indicating that it intended to
terminate agreements with the Company and CCH Europe GmbH ("GmbH"), CCH's
principal subsidiary, following a review by the First Bank which revealed that
approximately US$340 million of lending advanced through GmbH had not been
applied to short term receivables but to longer term commitments. The First Bank
demanded immediate repayment of all funds (totalling approximately US$500
million) advanced under those agreements by the First Bank on its own behalf and
on behalf of a second bank for which it was acting as agent ("the Second Bank").

[sparky333] 19/12/2007 18:48

So why do CCH still have to pay $50m ?

if they sold the unit for $1

[soggy] 19/12/2007 12:10

My reading of that last paragraph is that either they did sell the German subsidiary to Erin or they sold it to the bank for $1. There's nothing I've read since that says neither of these options were pursued, so I would go with the assumption that GmbH, which is the bulk of the business, is sold off - either to Erin or Bank1.

[sparky333] 19/12/2007 08:02

I know that was mentioned but it was not mentioned when they reached agreement with Bank 1 we should have voted or been informed - nothing happened

[soggy] 17/12/2007 17:26

Are you saying the sale which was mentioned in the RNS on 19th Sept (below) didn't happen or are you saying that it wasn't mentioned in the letter?

RNS Number:0970E
CCH International plc
19 September 2007

Press Release 19 September 2007


CCH International plc
("CCH" or the "Company")

Re Suspension

....In connection with the above arrangements on 18 August 2007, in order to protect
the Company's assets, CCH entered into an agreement to sell GmbH to Eren Nil,
CCH's Chief Executive Officer and the sole director of GmbH, for US$1 with an
option to re-purchase GmbH for US$1 at any time up to three years and six months
from the date of the agreement. This agreement may be rescinded by CCH in the
event that approval of the transaction by the shareholders of CCH is not
obtained by 30 September. In the event that CCH does not sell GmbH within 28
days of the arrangements with the banks mentioned above being completed, CCH has
under-taken to grant the First Bank an option to acquire GmbH for US$1.

[sparky333] 17/12/2007 10:54

Nothing was annouced wrt Nil buying the german ops all that was mentioned was a deal struck with bank 1

[soggy] 16/12/2007 22:41

I didn't get that letter passed on to me by my broker either. Thanks for the quote. Is there anything else in it that is of interest?

I'm not sure what we have shares in now. The most profitable part of the business has been sold off to Erin, albeit with the option to buy it back in a few years time, hasn't it? So our shares are in the parent company which presumably is just the rump. If there is a cash offer, I'm absolutely sure it will be for only a few pennies, nothing like the value of the company before this debacle.

What I really wonder is whether they're still trading. Are they still managing the good business that they had, or have they had to just fold it all to make good the payments to the banks. ie, are they in fact bust? How would we find out if they're still trading?

In the shark-infested world of business and finance, I wouldn't be at all surprised if those they have provided finance to immediate withheld repayments etc, sensing a wounded animal it wouldn't be at all odd if they found reasons to default - after all, if CCH is crippled it will find it hard to pursue. Maybe I'm just cynical, but it wouldn't surprise me.

hey ho. I guess we all just have to wait and see. But it might be a long wait!

[borderriever] 16/12/2007 13:03

Could they come back onto the Ofex market instead,less regulated?

[moormoney] 16/12/2007 12:56

I'm tempted to e-mail the co. to say the same--happy to hold if they eventually make it back to market as there was nothing to complain about in their results. maybe we should all do this to hurry things along!

[confusedcoalboy] 16/12/2007 11:25

The chairman's letter mentions a cash distribution Sparky:

"26 October


...

I can quite understand your concerns regarding the value of your shares and their liquidity, especially now that CCH is no longer listed on AIM, and I am writing to you to assure you that the board of directors is working hard to achieve a solution to restore value to shareholders including a cash distribution ..."

So a bit out of date, although it is news to me. I guess my broker didn't pass that on when it was first sent out.
Does anyone know what the options are if we are offered cash for shares? I doubt I'd realise anything like what I paid for them, but would be happy to hold on if it came back to the market in future.
Al

[sparky333] 14/12/2007 11:29

Soggy

the PR company for CCH have phoned me a few times in Saudi to provide updates and they have said the same as mentioned above.

I think we are to be offered cash to buy us out not sure what amount per share.

I have a feeling this will be back to market in the next 2 years and tempted to refuse the offer and maintain shareholding once i can get sight of current trading etc.

[soggy] 14/12/2007 00:21

Thanks. I wondered how they would let shareholders know of any developments. I checked the website and there was nothing newer than the last RNS.

As my stock was held by TDWaterhouse in their nominee account my name wouldn't be on any register of shareholders - so I'm at the mercy of TDW to pass on any info and they don't always do that.

So, if you get anything, please do post it.

Cheers!

[confusedcoalboy] 13/12/2007 21:45

Apparently there is a letter from the board sent to shareholders in the past couple of weeks. I phoned up and spoke to someone, and I'll post the text of it when I receive it..
Alan

[moormoney] 13/12/2007 00:07

I'm afraid not--I'm still hoping for something positive to happen soon.

[soggy] 12/12/2007 11:50

Has anyone managed to find out any information since their last RNS on 24th Oct?

In it they said,
"The board of directors of the Company ("Board") is currently exploring a number of options relating to the future of the Company and will select the option that, in the opinion of the Board, is in the best interests of the shareholders. It is expected that the review of these options will be completed in the near future and that shareholders will then be advised accordingly.

I can't find any mention of them via google. Have they really dropped off the face of the earth or does anyone have even a snippit of info they could pass on?

[lionelh] 06/11/2007 12:18

Sparky. This company has got a very serious funding problem at a time when there is a major credit crunch. If it is "cash-rich" why has it got such a dire problem? Even in the last results which the market responded exceedingly well to (too well, actually) it was earning no more than a few pennies per share which is hardly "cash-rich" The excitement was caused by the degree to which turnover was increasing exponentially. It no longer has a listing on a very modest trading platform (AIM) because its representatives resigned without notice and nobody else wanted to be associated with the circumstances it finds itself in. That by itself should tell you the extent of its problems. I'm just saying, Spark,y that in my view a shareholder would be incredibly optimistic to get 30p of 57p a share back. I've never known a share where you get back anything like the share price because, as Soggy says, we're always at the bottom of the pile. CCH is a total horlicks I'm afraid and holders really do need to prepare for the very real possibility of total write-off. If you do not want to admit of that very real possibility, Sparky, that is fine but you may well have to face it at sometime. That's all I'm saying. That something has gone catastrophically wrong is obvious to the entire markkt I would say now. It is only the final outcome that is uncertain.

CCH had £6 Million - does it still have it now? Are you sure? That CCH was not using its own money and was relying on the "big boys"is precisely why Northern Rock nearly went to the wall, don't you think? The financiers pulled the rug which is precisely what has happened here. Are the banks going to wait three years or their £50 million back? All the signs to me are that they want it back NOW which is why it is such a problem.

As I say, I'm not completely without hope that Eren Neal will sort something out and I still think that's our best chance. Getting 30p or 57p back for every share is just setting yourself up for a big disappointment. I just can't see where it is going to come from, certainly not the last set of results or a few more like it.

[umalukka] 02/11/2007 13:29

i mean news headlines.

[soggy] 02/11/2007 12:11

What RNSs ?

[umalukka] 02/11/2007 12:04

how do all these rns affect cch can anyone explain?