Eros Media 26 Discussion Threads

[tangledupinblu] 01/12/2021 15:11

Does anyone know what’s going on with the bonds??

[1bonds] 30/11/2021 19:15

@pyueck - haven’t you sold yours already?
If and it’s a big IF the bonds default then the recovery rate will be the sum of all the sold assets (plus any cash on hand) divided by the creditors/Bondholders with anything left over going to the equity holders. I believe the total debt including retail bonds is c. $300m, so if for example they raise $150m in a fire sale then the bonds will be worth 50, obviously more than 150m then a higher recovery rate and vice versa. Any guesses on what both Eros and Stx film libraries plus any other assets (property?) are worth?

[pyueck] 30/11/2021 10:39

Does anybody actually expect the audited results to be released today? Today is the deadline for them to publish the accounts before our bond defaults. If no results today then surely some kind of insolvency will follow. I’m no expert on insolvency law in the US, or even really know where this company is based, but in the UK it is illegal to trade while insolvent so I really think we are right in the endgame here. There is the further deadline with other bond holders to sell STX for this Friday, maybe they will be able to survive until then. There are rules in the prospectus about how the bonds get defaulted. I suspect they will hope, probably correctly that retail bond holders won’t know how to default in accordance with this, they will have no such luck with JPM. We should never have extended these things.

[chdaow] 25/11/2021 14:38

Pyueck I think you’re right. Value is plummeting by the day and there’s no sign of those reports with the deadline fast approaching. Can only see this going one way.

I’m cutting my losses and trying to sell now (trade not going through on website so had to contact broker to put trade on with limit).

Wish I had got out when you did!

[pyueck] 25/11/2021 13:16

Looks extremely likely unfortunately. Our bonds have fallen more than shares as reality bites that we are screwed. Share price has reflected that they were screwed long ago. Suspect only ones that will see anything from sale of STX will be JPM. We will be left with bonds in a shell company that owns a company which is worthless. In short imho any remaining bond holders should get out with anything whilst you can. If you get 40p in the pound then count yourself lucky.

[my retirement fund] 25/11/2021 11:28

Will get get its long overdue bankruptcy filing by Friday next ?

[grahamg8] 25/11/2021 07:29

ErosSTX share price stable over the last 5 days in New York. Meanwhile the bonds collapse by over 30%. Strange.

[chdaow] 17/11/2021 18:25

On top of this the extended deadline for Eros to produce audited financial statements is fast approaching with nothing to show so far, see below excerpt:

“While the company managed to amend the terms of its £50 million ($69 million) 6.50% UK retail bonds in September, failure to provide audited financial results until November 30 would again result in covenants being breached:

Eros STX Global Corporation announces that bondholders of its £50 million ($69 million) 6.50% UK retail bonds due 2021 approved proposed modifications and waivers to the UK Retail Bonds at the adjourned meeting of bondholders held on September 20, 2021.

These modifications and waivers include, among other things, (i) an extension of the maturity date from October 15, 2021 to April 15, 2023; (ii) an increase in the interest rate from 6.5% to 8.5%, effective as of October 15, 2021; (iii) extensions of the financial reporting covenants (a) from July 31, 2021 to November 30, 2021 with respect to the obligation to deliver the Company’s audited financial statements for the fiscal year ended March 31, 2021, and (b) from November 30, 2021 to January 31, 2022 with respect to the obligation to deliver the Company’s interim financial statements for the six months ending September 30, 2021; and (iv) a waiver of the financial covenants regarding the Company’s leverage ratio and fixed charge cover ratio until the earlier of the release of the Company’s interim financial statements for the six months ending September 30, 2022 and November 30, 2022.”

[grahamg8] 17/11/2021 17:29

Slightly puzzled. ErosSTX said some time ago that they would have to sell their film catalogue in order to secure a new finance deal. So to have confirmation that it is about to go ahead should be positive not negative. pyueck where did you pick up that the bonds are lower down the pecking order than other debt? It's news to me. Unless creditors have higher security then all are paid out equally if the company is insolvent. The due date on the debt shouldn't be relevant.

[pyueck] 16/11/2021 19:07

Surely we are now totally screwed. We agreed to our debt falling due after all others. STX looks like it will be sold leaving behind a shell with Eros and it’s debt. Based on share price looks like next to nothing will be left for equity holders. As our debt will be repaid after others then likely we will get nothing. Why did we agree to the bond extension, we just put ourselves to back of the queue. I am selling out these bonds tomorrow at any price. Can’t see any good outcome.

[tsaras] 16/11/2021 18:26

Yes, you are selling the best part of your business. So it’s definitely equity negative as the future looks gloomy. But is there a scenario that some of the sale proceeds will go towards repaying the retail bonds (in 1.5 years)

[verymaryhinge] 16/11/2021 16:09

the share price in the US is off 30pct

[tsaras] 16/11/2021 15:12

Is that good or bad news for the retail bonds? You never know with those crooks

[verymaryhinge] 16/11/2021 14:10

httpx://finance.yahoo.com/news/erosstx-enters-exclusive-negotiations-sale-133000193.html

[chdaow] 04/11/2021 13:15

Coupon now showing in my account too.

[scoobysurfer] 03/11/2021 23:20

Coupon now received also.

[tsaras] 03/11/2021 18:58

Was coupon 6.5% this payment? 8.5% is effective from 15 October?

[bobswest] 03/11/2021 16:17

The fat lady may not have sung for this bond just yet, but I fear she is still in the wings waiting to come on stage.

The next bit of excitement will be just how gruesome the accounts they finally publish are. I think the deadline for them is 30th November.

[emmarg] 03/11/2021 15:52

Panic over guys and gals (for now anyway)
i have just received my 1/2 yearly payment into my SIPP (AJ BELL0

[verymaryhinge] 03/11/2021 15:52

* might be worth checking again - I know someone who has been paid.

[bobswest] 03/11/2021 12:48

Perhaps the Bond Trustee would like to earn their fee for a change?

[verymaryhinge] 03/11/2021 12:23

maybe worth asking on their twitter feed @erosstx ?

[pyueck] 03/11/2021 11:27

It’s not really a grace period. The prospectus says that the bond will be in default and can be called in (if a certain number of bond holders ask for it) if not paid within 14 days due. No idea how bondholders can call it in now, do we just email? That’s the trouble with retail bonds the holders are so dispersed that it is difficult to be able to exercise our rights. And as when you read the prospectus we are pretty much at the bottom of the food chain when it comes to liquidation there is little value in us defaulting this. In many ways non payment is not much of a surprise until they negotiate new terms with banks - which I am. Sure will be on much better terms than we got. I was always against the approval of the change in terms but appreciate that whatever that vote was our situation now would be the same. And that situation is for sure now up the creek without a paddle. Just need the water to start flowing in our direction soon or we are done for.

[tsaras] 03/11/2021 07:56

You are right graham8. It’s 14 days. So I guess we are waiting for the default headlines…

[grahamg8] 03/11/2021 07:27

Tsaras. Prospectus p112 section 8. Grace period is 14 days.