Digital 9 Infrastructure Share Discussion Threads

[wskill] 09/2/2024 09:25

£1,239 million invested and in a blink of an eye its now worth around £150 million and nothing untoward has happened in a little over 2 years all the money has disappeared.
All down to a little bad luck nothing dishonest just incompetent management pull the other one .

[williamcooper104] 09/2/2024 09:19

Yep it's not a zero even with Acquivia written off - key thing is that the VLN is non recourse But given TPs incompetence a rescue rights issue can't be excluded and I guess that's what the market is pricing now Which is of course a double hex as if it does happen then it'll happen at a much worse price

[cc2014] 09/2/2024 09:17

Volcano goes off again

[terminator101] 09/2/2024 07:29

“Under what conditions is this a zero”

Todays conditions. Thats what. This has been run by incompetent clowns.

[loglorry1] 08/2/2024 19:54

Having said that it would need to be 3:1 or worse at this rate.

[spoole5] 08/2/2024 19:22

The market believes this is worthless and may have some value at some point if various things happen. The only thing that keeps it at this level are mug punters believing the fantasy NAVs.

[sandeep67] 08/2/2024 19:04

DG is nothing more than Dog's Gonads at present .

[daveoz1] 08/2/2024 17:20

Down 21.98% to 17.7p today. Heading for zero?! Still hasn't made it into Sky News Business News...

[wskill] 08/2/2024 16:53

Unfortunately this seems to be what TP excel at they have managed to turn £1.2 billion into £150 million through incompetence and overpaying for assets .

Could this be just another HOME type of fraud but more cunning involved by the participants .

[tigerbythetail] 08/2/2024 15:05

Clearly they didn't know their liquidity requirements in the past. That's incredible but also incontrovertible.
I'm not sure today's share price fall is justified by today's RNS - the delay in the Verne approval is frustrating but it shouldn't be disastrous.
But there may be more to the share price action than that. Let's see what the promised update RNS at the end of the month contains.
Also, many thanks for the replies to my post above. It is indeed a debt juggle here. We can only hope Triple Point and the BoD don't drop the ball.

[marlint111] 08/2/2024 15:03

I know the feeling Alan!

[alan pt] 08/2/2024 15:02

Marlint Yes, you'd hope that the interests would be aligned. But maybe the banks are as tired of the ongoing financial incompetence as the shareholders and disinclined to believe anything that DGI9 tells them

As a losing gambler (I struggle to use the word investor at this point) on DGI9 I would love to be more optimistic, but every time I am, I am swiftly proven wrong

[williamcooper104] 08/2/2024 14:57

The question is do Tripple Point know what liquidity they need over the next 6-12 months (Stopped out yet again)

[gonsan] 08/2/2024 14:28

The funny thing is that triple point offers a vct! Incredible that such an incompetent outfit is allowed in business in the UK

[marlint111] 08/2/2024 14:09

So it is only after 4 years the principal needs to be paid off before distributions. Before then it is fine as long as interest cleared.

[marlint111] 08/2/2024 14:08

You are probably right about the order of debt repayments Cc- but I think wrong about the VLN- from the interim report:

"Accrued interest must be repaid in full before
distributions can be made to the Group. After the
fourth anniversary of the VLN, the Group can only
receive distributions if the entirety of the VLN principal
and any rolled up interest has been repaid in full"

[cc2014] 08/2/2024 14:05

I suggest Marlin what you are missing is that the RCF ranks first in how debt has to be repaid. It is not at DGI9's discretion.

Also no cash can be pulled out of Arqiva until the whole £157m is paid off not £7m

And that would also suppose DGI9 have control of Arqiva which they do not as they own 48%. They can't just go around pulling cash out, the other shareholders in Arqiva have rights.

Oh and btw the accretion payments go on for another 4 years...

[marlint111] 08/2/2024 13:46

In fact- I don't understand why the first move on selling Verne would't be to clear the accrued VLN interest - this should then free up a load of Arqiva cashflow.

[marlint111] 08/2/2024 13:45

Yep Alan- its a debt juggle. But ultimately DGI9s lenders should be aligned on this. The best way they get repaid quickly is for the Verne sale to go through.

If this fails for any reason, the value of the asset drops- and their chance of getting all their money back with it. At the very least it would delay them getting paid back (as it stands if they can keep things going until the sale goes through- they'll have almost all the RCF paid back).

With inflation dropping, no more accretion payments, and Arqiva should start to be generating some serious OCF. They've only got 7m I believe of accrued interest on the VLNs - so once that is cleared they can pull cash from Arqiva.

[alan pt] 08/2/2024 13:39

They already raised a $100M loan on Verne in June 23. 50% repaid a debt to DGI9 (so presumably already swallowed up by DGI9), 25% repaid existing Verne debt, 25% was to pay Verne capital costs in 23(!)

At the time they noted that the DGI9 RCF had the condition:
"[1] The Global LTV test limit is 65%. This is a ratio (expressed as a percentage) of the total Financial Indebtedness of the Group including any wholly owned Subsidiaries and any Non-Wholly Owned Holdings of the Group."

So, they really have been juggling debt for the last 9 months and are running out of options

[cc2014] 08/2/2024 13:34

TigerByTheTail8 Feb '24 - 13:13 - 1507 of 1507
0 0 0
Does anybody have a good idea of how much liquidity DGI9 need in the short / medium term, and how that matches up against their current cash flow?
If you get the accounts, the latest presentations and the RNS's the information is all there

In terms of Verne, surely they should be able to raise any expansion Capex required at the company level?
No, they can't. T&C with other lenders will not allow this

As for the Vendor Loan Note for Arquiva, they can presumably keep up with that using funds that Arquiva itself generates, no?
IIRC the VLN allows the interest to be added to the principal which is what they've done to date, (because they've got no money...)

Then there is the RCF, repayment of the principal of which isn't due until May 2025.
So that leaves the interest on the RCF and, of course, general G&A, which shouldn't be huge.
Am I missing something?