Eurodis Elect. Share Discussion Threads

[the stinger] 18/7/2005 08:43

Quite right VQ, at the end of the day all any one can do at this stage is speculate, including nonlottie!. Who knows what might happen,,,suppose a note to ordinary shareholders wouldn't harm though!. At least they'll know where they stand in this. Let's face it shareholders have contributed in a massive way in keeping ELH a float (previous issue of equities)

[very quick] 18/7/2005 08:35

The directors needed 4.86p per share just to clear creditors so why ask for 1p???

[very quick] 18/7/2005 08:34

NONLOTTIE: Who says that the directors were selling it for 1p i have seen no news to that fact, and my guess is that they were been greedy during talks and asking for 6p+ thats why talks of merger finished.

[nonlottie] 18/7/2005 08:27

Momentos



I believe I'm making a contribution...unlike you who's getting into your bully boy stuff again.and whilst I can help explain things I'll continue to do so thankyou.

A sale of the business as a whole does not have to be the shares of Eurodis Plc and can be all its assets instead and this is the way administrators work because it's easier , sinpler and what buyers usually want.

If you read and understood what I've been saying you'd realise it is horribly complex ...........first of all you gave to accept that the price for the whole is going to be less than the net assets. Therefore someone has to take a bath............this means the prefs and other classes of creditors. This means deals with all of them.

Therefore much easier for the buyer to buy the assets clean and thenthe administrator distribute the money,,,,,,,,,,it happens every day of the week...and it cuts down on due diligence and the purchaser is sure he's not taking on any unknown liabilities.

If the directors couldn't sell it for 1p then it's worth less to the buyer and worth a lot less now it's in administration.........now's the opportunity to buy what you want without any bits you didn't like in the due diligence.........therefore an asset sale.

[very quick] 18/7/2005 08:00

As far as i'm concerned the business is in the process of being sold as a whole by the administrators and i have seen no news to the fact that this is in recievership or liquidation or bust and is currently run as a going business. Now if they cant find a buyer then perhaps things will change and a break up likely but untill then there is still hope.

[momentos] 18/7/2005 07:02

nonlottie

"To buy the company would be horrendously complex with deals with all the banks, creditors, prefs etc which is why the administrator will want the highest quickest bid (before the co's buiness evaporates) for the assets and then deal with the creditors himself. The longer it goes on the less the administrator is likely to get."

What absolute tosh. If buying a company is hideously complicated no one would ever do it!

The administrator will TRY to sell the whole business warts & all, if he fails, he will break it up. I agree, though, that liquidation is the most likely scenario.

Perhaps as you are neither a shareholder, nor seem to know anything about administration, receivership and liquidation, you might wish to go and post on a board where you actually have something to contribute.

[westernedge] 17/7/2005 23:34

hmm..just back off hols and thats f#####n great news then...

everyone knew it was high risk..when the share price didnt move on the bid news it was always looking dodgy despite good arguments to the contrary as to why...
no point gloating or waiting for the once in a lifetime miracle to happen..

i am somewhat surprised at the speed of the end game but its write off time...

bottom line...we did put our faith in dr and he couldnt do the business...
he fails..we fail...

always appreciated the effort most of the regulars put in here..
shame it didnt work out...

ps..as a regular trader of several years and not a ltbher im seriously annoyed i held onto these when i always sell when theres a profit and move on... picked a real winner to change my strategy on... always the way though eh?

good luck to all elh,ers... there are hundreds of opportunities to make back your losses every month...you just have to find em and fund em

[0zzy] 17/7/2005 23:28

Just for a short time I took the pistol from my head........but then read nonlottie...

[nonlottie] 17/7/2005 23:22

Stinger

This is a standard comment to try and keep the business together whilst he maximises the value......it does not mean the sale of the legal entity as I've explained in earlier posts.............Stop dreaming...can't believe the optimism on this board even now the thing has gone belly up.

I'm sure you realise that stakeholders means creditors, employees,etc and is not really aimed at shareholders....after all what use are they to an administrator.......about as useful as a pub with no beer.

What's the point of lifting a suspension on shares in a company no-one wants, the directors don't want to run and a bank doesn't want to finance??????????????

[shirishg] 17/7/2005 23:20

Post removed by ADVFN

[the stinger] 17/7/2005 23:15

Very Quick,

I would not be surprised to see the suspension lifted this week....

Neville Khan said: "with the support of the stakeholders, it is our intention
to allow the Company to continue operating to support its customer base, while
we seek a purchaser. A number of parties have already expressed interest with
whom we have commenced discussions."

May be an interesting week ahead!

[nonlottie] 17/7/2005 22:59

Make no mistake this co. must have been bust and well and truly otherwise it would have been snapped up for a pound with all the tax losses.

To buy the company would be horrendously complex with deals with all the banks, creditors, prefs etc which is why the administrator will want the highest quickest bid (before the co's buiness evaporates) for the assets and then deal with the creditors himself. The longer it goes on the less the administrator is likely to get.

As a buyer you want the business as quick as possible, at the lowest price, without the baggage of the creditors, employees you don't want etc etc. A viable business at a discount quickly beats a business losing market share but with some tax losses. After all what use tax losses if you can't use them.

When the board can't give it away with the tax losses why would the purchasers think differently now it's in administration and therefore less valuable.These administrators don't have magic wands - they take over when management fail and have to look for a quick deal.

Stop dreaming - it's all gone as far as shareholders are concerned - apart from the capital loss.

.

[vavoom2] 17/7/2005 21:46

lol agreeing with yourself ar



c1ty whispers - 17 Jul'05 - 21:43 - 9007 of 9007


I agree with you VERY QUICK............

[c1ty whispers] 17/7/2005 21:43

I agree with you VERY QUICK............we shareholders are still bottom of the pecking order though.

I,ve written it off for now....lets see what develops.

[very quick] 17/7/2005 21:37

Thanks for that The Stinger: you are right to say this is NOT IN RECEIVERSHIP NOR IS IT IN LIQUIDATION. This is still an ongoing business and may well continue to do so with whomever the administrators sell it to. I'm confident that this will not go bust and will continue to trade. Why all the doom and gloom here, its not over yet untill the plug is pulled.

[fusebox] 17/7/2005 21:18

A number of ELH investors will be buying EKT this week and clawing back some of their losses i have received a number of emails !

[c1ty whispers] 17/7/2005 21:03

Edited Press Release


LONDON (Dow Jones)--Eurodis Electron PLC said Friday that it has, by reason
of its financial position, appointed Neville Barry Khan, Nicholas Guy Edwards
and Nicholas James Dargan, all of Deloitte & Touche LLP, to act as joint
administrators of the Company.

This follows the announcement made on Jul. 14, 2005, following which dealings
in the Company's shares were temporarily suspended.

Neville Khan said: "with the support of the stakeholders, it is our intention
to allow the Company to continue operating to support its customer base, while
we seek a purchaser. A number of parties have already expressed interest with
whom we have commenced discussions."


(END) Dow Jones Newswires

15-07-05 1615GMT

Copyright (c) 2005 Dow Jones & Company, Inc.

071505 16:15 -- GMT

[momentos] 17/7/2005 19:48

Remember Eurodis is a distributed network of several local country companies. How much a liquidator will be able to realise of the foreign subsidiary value is debatable.

The local country company guys are just as likely to up sticks, set up a new co / get new backing, and plug into another distribution network. All that the liquidator is likely to get back is nominal asset value.

There is an imperative to sell the network in its entirety and quickly.

[momentos] 17/7/2005 19:43

Yes Offroad, but Eurodis are hardly going to be bought by McDonalds.

If they are bought, it will be by an electronic components distributor (or perhaps supplier). Business is the same, credits apply.

Atomic Dog, they are in administration, not liquidation / receivership, so your scenario does not yet apply. Though in all likelihood it will do within a few days.

[atomic dog] 17/7/2005 19:42

The whole attraction of the current situation to potential buyers is that they don't have to take on any of the liabilities. So they will bid for the distribution centre and take over the customers but everyone else (creditors, pension scheme, shareholders, employees etc) can just be told to take a hike. I am a shareholder but frankly there is no way I expect to get anything back out of this.

Just look at Rover cars. And does anyone seriously believe the Chinese are going to pay British workers when they can get Chinese workers for peanuts? Its all wishful thinking.

[shirishg] 17/7/2005 19:40

Post removed by ADVFN

[momentos] 17/7/2005 19:23

Don't bother stinger. Ignorance is probably bliss.

Although I disagree that support from shareholders is required. The administrator can sell Eurodis in its entirety for £1 if its the best offer he gets. Subject to creditor support ( but not shareholder).

Selling the whole business continuing trading is the best option for retaining value. If that isn't on the table then break up will follow.

If any premium offer for the ongoing business is made, then we (after prefs) get the dosh. Its then up to the buyer to trade out the debtor / creditor position.

(and in such instance the legal entity Eurodis transfers from shareholders to the buyers and becomes their subsidiary. Useful for the old tax credits).

[nonlottie] 17/7/2005 19:04

Stinger

It's still running yes BUT it is in Administration.

For the reasons I've outlined in previous posts there is practically no chance of the legal entity Eurodis Plc emerging from this.

Please explain why it should and how shareholders would benefit?

What is this about support from shareholders. The only possible support would be more cash. If that was deemed a possibility the directors would have done it before Administration. They might even have sounded out major shareholders........however why would anyone want to throw even more money at this?????