Eros Media 26 Discussion Threads

[aamhager] 10/8/2021 15:49

Not sure why you are saying i am incorrect. You agree that the bond is issued by the combined company which is what I said. The point is we have a claim on STX assets or whatever is left of them after paying the secured debt. If they can't honor the bond payment (whether extended or not) they they have no choice but go bankrupt.
Personally, I think they have enough assets, they recently paid 75mUSD for a single movie "Greenland". They are trying to monetise their whole library of 46 movies

[pokerperson] 10/8/2021 15:33

Sadly you are incorrect.

Eros International Plc changed its name to Eros STX Global Corporation pursuant to the July 2020 merger with STX Entertainment, which integrated as a wholly owned subsidiary, merging two international media and entertainment groups

The bond issuing company has merely changed its name and the assets are in various subsidiaries while the bond has been issued by topco in the Isle of Man. The prospectus is clear that not only is the bond unsecured but it is subordinate to all unsecured creditors in all the Indian entities. No doubt these will include lots of related parties who no doubt have siphoned off every bit of cash

Stx is a merged subsidiary and will be ringfenced by its banks so no cash will escape from there.

Not scaremongering but there will be zero cash to pass up to topco where the bond resides.

[aamhager] 10/8/2021 14:56

The retail bond is definitely the responsibility of the combined group. EROS international PLC does not exist anymore.

Their PR on Aug 3rd confirms this, actually they hinted at an extension.

[pokerperson] 10/8/2021 14:40

Aamhager.

Sadly there are no cross guarantees in the retail bond documentation, I checked back to the original filings, so I am afraid we are dealing with Eros and I suspect that Stx can just let it go

Ps bank debt is only ahead if it is secured, which this is… not there are anywhere enough assets to provide security and that’s before one even considers the weekly cash burn.

Make no mistake the business is currently being run exclusively to maximise the return to JP Morgan and it they who are calling all the shots

[aamhager] 10/8/2021 14:28

Well they failed the covenants and are in technical default, so all debt become due. In general bank debt always is ahead of unsecured debt.

Not sure how to vote myself but I am glad we are dealing with STX which seems to have some assets at least. If it was EROS it would have been 100% bankruptcy with little recovery.

[pokerperson] 10/8/2021 14:19

Aamhager. Not the mezzannine which gets accelerated through this consent before ours.

More to the point, if we cave, we have no leverage through the current breach to trigger an insolvency process which means we can be fully ignored as they go through the debt restructure with the secured creditors

[aamhager] 10/8/2021 13:34

The bank debt is secured and expires before our bonds

[pokerperson] 10/8/2021 12:59

Disgusting Dags… agree with your analysis…just trying to shift retail down the track so it won’t screw up the secured creditor negotiation. No intention to ever repay this bond. People would be mad or vote for it

[gypsyfortuneteller] 10/8/2021 12:21

Crooks is too polite for these people mate.

[dagsteeth] 10/8/2021 11:35

Actually if we organised ourselves we could form a retail bond holder committee to act in concert but we are too disparate.

The whole thing is a sham. As I said all they are doing is trying to bribe us to let the other creditors pick off the carcass with us relegated to the bottom of the heap. So actually we stand more chance of getting something back by pushing the company into bankruptcy now then seeing all the assets sold of and cash distributed to other creditors first. All we will be left with will be worthless goodwill and a manky old VCR of a smiling Indian crook laughing at us

I actually think today’s bond price is an absolute steal…to sell every last penny I have left in this. No way will this ever see 60 cents in the dollar when it all plays out

[pyueck] 10/8/2021 09:50

Minded to agree. If they are selling assets to raise funds to pay off bank loans why are we not seeing this, our bonds mature first.

Also hate this mechanism where we get 0.5% if we vote for it but none if we don't. Seen this a few times recently, basically being paid to vote one way.

The trouble as retail bondholders is that you cannot negotiate on mass and therefore you end up having to take what is on the table. If we vote against this we probably wont get anything, at least if we vote for it we will get 0.5% + maybe the next interest. Crazy that they don't say how long the extension will be for. Probably longer would be better than shorter as if its say only 6 months then we get 4.125% for pushing our redemption date behind other creditors.

[spectoacc] 06/8/2021 06:29

Seem to recall them getting a clean bill of health after the allegations of a few years ago - who did that report?

Who did the DD for the merger?

And what did the ERO1's end up secured upon - nothing, to start with, but that changed after a reorganisation I believe.

Hats off - once again - to the shorters who spotted the fraud. But commiserations to anyone caught in ERO1.

[dagsteeth] 06/8/2021 06:24

Auditors?
Directors?
lSE?
SEC?
Bond trustees?
Cannacord as the promotors of the bond?


Meanwhile a bunch of Indian crooks have stolen our money after the most disgusting fraud.

Where is the class action?
Or someone tell me where these people live…if we don’t get our money back they should spend every night scared witless about footsteps in the night seeking retribution

[pyueck] 05/8/2021 21:22

This looks awful. Sounds like the last few years of Eros income was hugely overinflated as receivables will never be paid. This was predicted years ago. Looks very unlikely the bond will be repaid maybe we will get some debt for equity swap or the bond will be extended. However with no results released and JPM bond dependent on accounts expect all debtors to try to call everything in. Bankruptcy seems serious likelihood and not sure any value will be obtained for creditors. This one stunk for years, shame it has blown up just before repayment. Was hoping our debt could be offloaded to some other poor creditor before the .... hit the fan.

[grahamg8] 05/8/2021 16:28

That's the third price crash in two years. I'm not convinced it's terminal though. Total debt is $242.3m against an mcap of $328.3m this morning. Highly geared but not extreme. Timing is the problem as the bonds and JPM credit need to be repaid or replaced in October. With no accounts filed no bank will touch this. The RNS gave a strong steer that the bond's life will be extended under revised terms.

Although originally issued by Eros the information sheet now lists them as issued by EI plc with an 'undertaking not to create more secure debt other than within India' so again not convinced that the banks get the first bite of the cherry. The shareholders meanwhile will no doubt sue the company. They are Americans after all.

Overnight indicated price 29p rose to 39p. Rally or dead cat bounce? We shall see over the next three months.

[spectoacc] 05/8/2021 16:06

Strewth. There but for the grace of God. Sympathy to those holding, particularly those in for these final few months - thought the merger had put paid to the (justified, as it turns out) accounting rumours.

[speedsgh] 05/8/2021 13:29

Eros STX Global Warns On Debt Covenant Violations Amid Audit Committee Investigation - Sell

Aug. 04, 2021 10:22 PM ET

Summary

Company discloses its inability to timely file its annual report on Form 20-F with the SEC due to an audit committee investigation into its Indian subsidiaries.

Apparently, the former Eros International has recognized substantial amounts of highly questionable revenue prior to the merger with STX Entertainment 12 months ago.

As a result, the company expects to impair up to $643 million in goodwill and intangible assets.

Ongoing inability to file audited financial statements has caused the company to violate covenants governing a large part of its debt.

Bankruptcy might be in the cards here. Given the uncertain outlook, investors should consider selling their shares...

[my retirement fund] 05/8/2021 13:20

I would imagine you couldn't sell them if you wanted to could you?

[scoobysurfer] 05/8/2021 12:55

Have they been declared insolvent??? I’m holding the bonds, no point selling now.

[my retirement fund] 05/8/2021 12:11

As had been flagged a number of years ago, Eros had been miss stating its revenue and assets. Now the business is being declared insolvent it would seem and its new owners who are probably part of the scam should be bloody good cover to ensure no Indian can be charged with fraud. All very convenient. I guess there would have actually been some genuinely nieve ERO1 holders who actually imagined their investment was going to be redeemed. All very sad, but all very predicable.

[my retirement fund] 05/8/2021 12:04

Are they bust yet ? I assume debt holders other than the most senior will be wiped out as is generally the case with all Indian businesses who've managed to find foreign investment outside of India.

[scoobysurfer] 05/8/2021 10:17

Not looking good