Eros Media 26 Discussion Threads

[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.

[spectoacc] 03/11/2021 06:45

"We've issued the payout"

"We've not engaged in any fraud, the shorters are wrong"

"We're certain all our revenue is real"

etc.

[tsaras] 02/11/2021 21:52

Isn’t the grace period usually 30 days? Or was it written in the prospectus that it is 14 days?

[aamhager] 02/11/2021 21:14

I would expect the payment to take few days to make its way from the company to investors account but if they did not make the payment on Friday it means the company is in default and all debt becomes due now.

[grahamg8] 02/11/2021 19:58

I agree with everyone. Issued does not mean paid. No money in my account either. The information office are being disingenuous ie tantamount to lying. That's no way to treat your investors. I thought the 'cheque in the post' excuse was only used by shady
backstreet businesses. Oh, sorry, this is a shady backstreet business. Perhaps they could make a film about corporate gangsters who rip off the public. We could all star as extras.

[peachy7] 02/11/2021 19:10

ii say:
We have spoken to the company again today. They said last week, now it's
this week. We are actively chasing them.

[chdaow] 02/11/2021 16:36

Same here pyueck, nothing has landed in my account yet either. It’s a bit of a concern.

[pyueck] 02/11/2021 15:25

Does issued mean paid? Unfortunately I am now in the position where I will believe it has been paid when it is in my account.