Eros Media 26 Discussion Threads

[tsaras] 03/9/2021 16:00

Any news out yet?

[pyueck] 03/9/2021 07:29

Well FYI i voted no. The increase in interest rate doesn’t amount to hardly anything as extension is only a year and a half. I needed to see much more evidence of the company transforming itself before voting for it, including the removal of all Lulla family members from the board. If we approve it we get no negotiation, if we reject they surely will come with something more desirable. I suspect the other debt holders will get materially better terms than we are being offered.

[mokhan2] 02/9/2021 16:33

Voted: For the amendments. New owners, I feel they should be given time as they just seem to have been trying to put out fires since the merger.

[spectoacc] 31/8/2021 06:26

Long ago, with feet ;)

Hobson's Choice surely.

[pyueck] 31/8/2021 06:20

How are people voting?

[cc2014] 19/8/2021 08:18

Bonds up today on back of a deal with Amazon Prime.

[spectoacc] 19/8/2021 07:55

Lol indeed. Only now they've been found out. But surprised that leaves the market giving the bonds a 2/3rd's chance of redemption.

[cc2014] 19/8/2021 07:44

It doesn't matter whether there is any cash down the back of the sofa, only that people believe there is cash down the back of the sofa.

Which appears to have been the play all along...

[spectoacc] 19/8/2021 07:27

Still going up. Not been following it closely, but presumably an extension kicks the can down the road long enough for....what? Eros to discover some cash down the back of the sofa?

[boris the huge] 18/8/2021 20:44

Maybe it’s a hitathon between the market markers

[mokhan2] 18/8/2021 17:12

I wonder about these 10K trades that have been going through regularly since the bonds crashed recently. Definitely not retail.

[pyueck] 12/8/2021 14:18

Yes, selling at a loss is often painful, but may turn out to be the best outcome. If somebody has held since the issue in 2014, in cash terms with the interest and 56p in the £ back you wouldn't have lost much.

[dagsteeth] 12/8/2021 14:05

The only remarkable thing left in this sorry mess is that the market will still give you 55p for something which I think is worthless.

I have followed my own advice!

[grahamg8] 12/8/2021 06:46

pyueck, we would not just be negotiating with Eros but also with JP Morgan. They do have the upper hand because their money is secured and so they can let Eros go bust and still get paid out (almost certainly). We don't know what will be left of the carcass once the top predators have had their fill. Try to squeeze too hard and JPM just walk off. An increased coupon in exchange for 18m later payment is a reasonable deal. So the real question is will ErosSTX be profitable enough over that time to repay us, or will they be in an even worse financial position?

[rob the slob] 11/8/2021 23:01

Email Mark Taber for advice. @marktaber_FII [e-mail]

[pyueck] 11/8/2021 20:38

If retail bond holders don’t approve this then Eros stx is probably not a going concern. We have negotiating position and should force their hand.

[grahamg8] 11/8/2021 18:57

Two words: Secured creditor.

[pyueck] 11/8/2021 16:54

Graham, why should JP Morgan get paid out and we don't. We should group together and send a list of demands in order for us to approve this or we will vote no on mass:

a) Retail bondholders get paid out on the proceeds from film sales in proportion with JP Morgan
b) Retail bondholders get paid an interest rate in line with the % received from JP Morgan
c) The Lulla family members have no more involvement in the company.

Why should JP Morgan get the spoils and we get the leftovers. We can screw over JP Morgan as much as they can screw us, but we need to work together.

[grahamg8] 11/8/2021 16:44

Squeaky bum time all round. If the bond holders don't sign off on this then JP Morgan won't extend their loan and Eros goes under. With no financials and an internal investigation in progress the bond holders are being asked to believe that the company will survive long enough to payout in 2023. The positive spin being presented is that the STX film library can be sold at a high enough price to pay off JP Morgan and the mezzanine finance. Well they would say that, and we have absolutely no way of telling if it is realistic. Then enough profits or other assets have to be found and turned into cash to raise our £50m in 20 months time.

Far too racey for me. Sold most of my bonds and kept a few as gambling chips.

[pokerperson] 11/8/2021 11:54

Thanks peachy. Nicely sidelined until there’s nothing left

[peachy7] 11/8/2021 11:17

The proposals extend the bond from 15 October 2021 to 15 April 2023.

[mdanese] 10/8/2021 19:15

Bonds of India-based entertainment company ErosSTX Global Corp. have fallen by about 40 points to be quoted in the 47-52 range after yesterday’s announcement that the group had made an appeal to extend the deadline for filing its 2021 annual report, sources told Reorg.

ErosSTX said in its announcement that it is exploring restructuring options for its £50 million 6.5% U.K. retail bond maturing Oct. 15 and $150 million JPMorgan asset-backed credit facility maturing Oct. 7: hxxps://reorg.com/erosstx-bonds/

[pokerperson] 10/8/2021 16:06

I think you are missing what is a technical point

The entity which issued the bonds has no assets just investments in subsidiaries. The assets and the secured debt sits in the subsidiaries. All of India is ringfenced for Indian creditors. So topco where the bond resides only gets any cash remitted up to it after every secured and Indian unsecured creditor has been paid in full. None of us know how much cash there actually is since all the receivables seem to be fiction. My point therefore is that it is pure hope value that there will be sufficient monetisation of assets in a distressed sale for anything to end up back in topco to satisfy the retail bond.

We can all take our own view as to whether assets will be greater than liabilities and don’t forget the millions currently being spent in restructuring and refinancing fees and that’s even before insolvency fees. 56cents in the dollar seems optimistic to me which is why I am likely to bail.

However what you can’t ignore is the waterfall structure for the cash and why our bond is so far at the bottom of the heap and why triggering this extension now simply negates the need to even consult with us as the company gets carved up between its other creditors

Over the last 5 days the market has shown it hasn’t got a clue what fair value is but in every insolvency type situation I have seen, let alone one in which there appears to be fraud, related parties, opaque corporate structures, a bet to zero is much more likely than a bet to 100. The market usually figures it out in the end but generally way later than it should for bonds or distressed equity.

Ps even if they do sell their entire library for more than the total debts, in the absence of a new financing they are then running a unfunded business with no assets which means they will never make profits or generate cash to repay our bond which they have clearly said they won’t pay back now even if they have excess cash. And they will still have a hefty wage bill which will continue to rank above our bond

I’m sorry, it’s curtains, the banks will get paid off out of STX and the promoters will find a way to walk off with whatever they can in India. Topco shareholders and bond holders will get nothing