Esken Share Discussion Threads

[shaikan not stirred] 27/1/2024 15:41

bought this yesterday, like the risk/reward on offer here

[neilyb675] 26/1/2024 15:37

from Stalin_ESQ on LSE:

"I personally think this is an opportunistic attempted asset grab by CGI. They have tried their luck with "purported" or "technical" breach claims. I would like to see a strongly worded rebuttal from ESKN have now had some time to chew the fat with their legal team. Alternatively if some of the muted CGI proposals are worthy of notification, then lets be hearing them. Do CGI want to be owner, part owner or what ? Also what are TOSCAs intentions / feelings with regards to the future of LSA / ESKN. Very very intriguing and I do not believe for one second all is lost."

[fenners66] 26/1/2024 10:45

Talking abour owning the debt above - Bloomberg has a guest on now Victor Khosla of Strategic Value Partners - who deal in $bns

Modus operendi is lend money - sometimes up to 16% interest rate - then wait for the distress
Then convert debt to equity and squeeze an even higher return from owning a debt free business.

He said it all with a smile on his face and says since the $Tr of loans were borrowed at near zero rates
now need re-financing hes now getting very busy and will have a choice of sectors and companies to
pounce on (my words).

And lo - owning the debt is worth a F-site more than current equity.

[neilyb675] 25/1/2024 18:49

interesting late buy reported, 2.5 million

[fenners66] 24/1/2024 15:09

Maybe TOSCA like a gamble with other peoples money.
Mike Ashley increased his stake in DEBS to £100m
but was still screwed like all the other shareholders and ...he's no numptie ... apparently.

[rupert57] 24/1/2024 14:04

"...its likely that their debt has such as a change of ownership clause making it repayable..."

If the sale of LSA is as far along as we are led to believe then the proceeds from that would repay the loan with ease, leaving some cash for the shareholders. This will take time, but so will any court case re the debt.

Bought 1mn for under £5k yesterday.

[neilyb675] 24/1/2024 13:02

So why fo you think the largest, by some msrgin, shareholder TOSCA increases their substantial holding in ESKN on the 12th Jan.

[fenners66] 24/1/2024 09:43

Neilyb675 - repeating the same lines about maturity date interest and cashflow - does not make the default issue go away - clearly if there is no default there is no merit and no action to be brought against the company - hence the implication that there is a technical default and my post above.

A loss making company with little cash can easily find itself in a bind and lose its assets to debt holders - that's often the smart place to be if you want their assets and if the management has made a pigs ear of cash flow and is unlikely to be rescued.

Furthermore its likely that their debt has such as a change of ownership clause making it repayable - these are designed to give the debt holder leverage - against the weak - and the management accept the position they put the company in because they have no choice.

Where does that leave the shareholders ?
Back of the queue with no one thinking of their interests as a priority.

[neilyb675] 24/1/2024 06:22

They increased their position 29.75% on 12th Jan.

That is curious if they didn't have a plan in mind.

[jotoha2] 24/1/2024 01:01

Tosca have around £4 B in assets , so a £200/300 million is peanuts , question is do they see a return here , or they could just release the Rottweiler and see what damage he can achieve on the money lenders.

[neilyb675] 23/1/2024 18:31

Are CGI and Tosca in cahoots here...?

Why did Tosca increase on 12/1/24 - seems a bit of a coincidence now, after todays announcement.

I think this story is intriguing.

Holding strong personally.

[neilyb675] 23/1/2024 08:57

The convertible loan has a maturity date of August 2028. There have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations. Esken and LSA are investigating the validity of the alleged breaches in conjunction with advisers.

[jotoha2] 23/1/2024 08:55

Why would they wish to increase to that level , now they are in the smelly stuff with nowhere to go and seeing their value fall to nearly zero.

[xxx] 23/1/2024 08:53

Not invested here, though have been watching from the sidelines.
Key issue here is whether the board of Esken have failed or Carlyle infrastructure are looking to take the whole thing over, with an eye to taking the value of the business in 5 years, rather than just being a loan note holder.

The board should explain the specific claimed breaches to shareholders, who would then be able to judge for themselves...

[neilyb675] 23/1/2024 08:48

They want out so badly they recently bought more shares, LOL

[jotoha2] 23/1/2024 08:45

Tosca want out , having such a large holding they should of kept their eye on the ball, all sounds a bit dodgy , I suppose they can blame BOD again !

[neilyb675] 23/1/2024 08:41

Toscafund very recently upped their stake to just under 30%. If they want to avoid losing their investment they could offer 7p / share for the rest of the company and own LSA, plus the CGI debt.

[tomboyb] 23/1/2024 08:30

Possibly a zero here then -

[neilyb675] 23/1/2024 08:04

The convertible loan has a maturity date of August 2028. There have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations. Esken and LSA are investigating the validity of the alleged breaches in conjunction with advisers.

[fenners66] 23/1/2024 07:59

Technical defaults are still defaults , presumably breach of covenant conditions , they are put in loans and agreed for a reason.

now we find out why being a debt holder is often far more important than being a shareholder - ask Mike Ashley at Sports Direct , he lost £100m buying shares not debt at Debenhams.

[jotoha2] 23/1/2024 07:58

Neilly, the case has not yet been to court , but it will end up there if the BOD are unable to sort out the mess, problem here is the BOD have shown themselves to be rather inept.

[blue square] 23/1/2024 07:33

Clearly if the Judge sides with carlyle
Esken will placed in administration,