Gran Tierra Energy Share Discussion Threads

[bozzy_s] 31/12/2010 15:51

I never quoted 25-30p. That was from a poorly educated barely-understandable poster who seems to hit enter twice for every post!

Please also note I suggested a 'fair' D for E price would be around 4p. Which is NOT a premium to 7.125p!

[jwe] 31/12/2010 15:49

What????
Hey perhaps you call insolvency `issues`.
Look these are the facts.Since 30.9 they have blown the remaing $5.5M of the old loan notes.They now need $5.75M to get them through the next MONTH!!They are so desperate they have agreed to pay a $750k fee for this-with a $5M penaly if not repaid by 31.1.11.They are due to receive $14M from P&W if the deal goes through shortly.Of that they have to pay $6.5M back immeadiately.That leaves them with $7.5M.IN ADDITION the loan holders have demanded that all old notes are now paid back by 15th Feb as a result of this D loan note deal.If not there are 2 senarios.The first is they are bust.The second is that the loans are swapped for equity,that will mean massive dilution-hey perhaps you guys think they will pay a premium.I strongly suspect any conversion will be at less than half of the current share price FWIW i think senario 2 is much more likely
You guys think this is worth 25-30p don`t make me laugh.Read it again!!

[bozzy_s] 31/12/2010 15:48

Correction - the warrants will NOT be changed to 0.2p IF the debt-for-equity swap goes ahead. So it is either point 2 or 3 above, not both.

[bozzy_s] 31/12/2010 15:45

That's how I read it Knowing. They are saying the sale (already signed) has to be voted through by shareholders in order to repay the $5.75m 20% loan notes.

3 things I don't like from the announcement.

1) The timing - it is 4 days before the market reopens

2) The warrant exercise price (don't know how many there are) being reduced from 10p to 0.2p - diluting existing shareholders

3) Bringing forward the redemption date of the other loan notes from Dec-12 to Feb-11 - and stating that they would be redeemed via issue of new shares.


The positive spin on 3) could be, the company had no requirement to bring forward the redemption date, and is therefore, hopefully, negotiating a debt-for-equity swap at a REASONABLE price, say 4p per share.

That would wipe out all borrowings, all interest payments, and give $10m+ in working capital going forward. It would also mean significant dilution to existing shareholders.

[knowing] 31/12/2010 15:33

All they are stating is that if the sale does not go through there would be issues and subsequently are recomending that investos vote in favour. Then we have a leaner company with far less debt.

[555557] 31/12/2010 15:30

Paying off loan notes seems like good news to me and as already stated they
will receive adaquate funds to pay them all off and still leave a healthy cash balance so what's the problem jwe ?

[gdasinv2] 31/12/2010 14:47

The D Loan Notes constitute US$5,750,000 notes of US$10 each; carrying a fixed interest rate of 20% p.a. and a commitment fee of US$750,000

The Sale of Aviation Asset is : US$17.1 million

So total Cash difference would be 17.1 - 5.75 Million - 0.75 Million = 10.6 Million in hand enough for working capital and enough assuring Loan holder to wait for 1 year more with another 20%

Also including core asset and Revenue of 40Million , The Loan holder and shareholder will not allow the insolvency otherwise no one gets nothing than to wait to sale the business, even they have to The business is worh more than 70Million inho.

I don't see any fear at all. Any 1 any comments?

[gdasinv2] 31/12/2010 14:47

The D Loan Notes constitute US$5,750,000 notes of US$10 each; carrying a fixed interest rate of 20% p.a. and a commitment fee of US$750,000

The Sale of Aviation Asset is : US$17.1 million

So total Cash difference would be 17.1 - 5.75 Million - 0.75 Million = 10.6 Million in hand enough for working capital and enough assuring Loan holder to wait for 1 year more with another 20%

Also including core asset and Revenue of 40Million , The Loan holder and shareholder will not allow the insolvency otherwise no one gets nothing than to wait to sale the business, even they have to The business is worh more than 70Million inho.

I don't see any fear at all. Any 1 any comments?

[minky65] 31/12/2010 13:43

JWE - I,ve read the statement and don't know why your panicking.Providing the sale to P&W goes through then GTE has the necessary funds to repay the D loan notes and IMO considering that they are paying 20% interest on those notes, repaying wouldn't be a bad idea.

[jwe] 31/12/2010 12:45

Appalling the more i read this,they obviously did not fully disclose the true position on the 29th

[jwe] 31/12/2010 12:40

Oh dear-20% and the admission of possible insolvency.All released after the market shut.Not in the least bit good.For those of you that bought in there was plenty of warnings on this board at least.
If you were P&W would you go ahead or just wait for insolvency and pick it up for a lot less.
Sorry for the likes of Kenny that bought in before all of this

[ravel morrison] 31/12/2010 12:33

RNS Number : 8055Y

Gas Turbine Efficiency PLC

31 December 2010

31 December, 2010

Gas Turbine Efficiency PLC

Proposed sale of assets of the aviation business

Circular to shareholders Further to the announcement made by GTE on 29 December 2010, a circular to shareholders has today been posted, including a notice of a General Meeting of the Company to be held at the offices of Bird & Bird LLP, 90 Fetter Lane, London EC4A 1PT at 11.00 a.m. on 17 January 2011 for the purpose of considering, and if thought fit, passing resolutions to: (1) approve the sale of assets in the aviation business of the Company; (2) provide the Directors with further authority to allot equity securities up to an aggregate nominal amount of GBP61,224.33; and (3) provide the Directors with authority to issue Ordinary Shares on a non pre-emptive basis to satisfy outstanding C Warrants and to allot equity securities up to an aggregate nominal amount of GBP20,408.11 on a non pre-emptive basis.

It was announced on 29 December 2010 that under the terms of the existing Loan Notes, GTE is required to apply the proceeds from the Asset Sale in repayment of the Loan Notes and that it was in discussions with Loan Note Holders about retaining the proceeds from the Asset Sale. Generation and Zouk have entered into a new commitment to subscribe for the D Loan Notes. The proceeds from the issue of the D Loan Notes will be used to finance the Group's working capital. Accordingly, the Loan Note Holders have agreed that GTE may retain the proceeds of the Asset Sale (subject to repayment of the D Loan Notes) and to certain amendments to the Loan Notes.

The D Loan Notes constitute US$5,750,000 notes of US$10 each; carrying a fixed interest rate of 20% p.a. and a commitment fee of US$750,000 (which is rolled up into the principal amount of the D Loan Notes). The D Loan Notes are repayable on 31 January 2011. However, if the Asset Sale proceeds to Completion, the Company will be required to repay the D Loan Notes within three business days from the receipt of the sale proceeds from the Asset Sale. In the event that the Asset Sale does not proceed to Completion, the Loan Notes and the D Loan Notes will become immediately due and repayable by GTE. GTE would not in such circumstances have sufficient cash resources to repay the Loan Notes or D Loan Notes and would need to seek alternative funding. There can be no guarantee that such funding could be obtained on acceptable terms or at all. If no such funding was obtained then the Company would be required to address insolvency issues which could lead to placing the Company into insolvent liquidation. Furthermore, in the event that the Company does not repay the D Loan Notes on the earlier of three business days from receipt of the Asset Sale proceeds or 31 January 2011 the Company will be required to pay a US$5m default fee to the holders of the D Loan Notes payable pro rata to the number of D Loan Notes held by each Loan Note Holder.

GTE is currently in discussions with the Loan Note Holders regarding a possible recapitalisation of some or all of the Loan Notes into equity. Accordingly, the terms of the Loan Notes have been amended to bring their repayment date forward from 18 December 2012 to 15 February 2011. If, however, GTE and the Noteholders reach an agreement on a proposed recapitalisation of the Loan Notes on or before 15 February 2011, the Loan Notes will not become repayable until 15 March 2011. In the event GTE reaches agreement with the Loan Noteholders on a recapitalisation, GTE will have until 15 March 2011 to effect such recapitalisation (including obtaining necessary Shareholder approval). If GTE cannot reach agreement with the Loan Note Holders by 15 February 2011 the Loan Notes will become immediately due and repayable on 15 February 2011. In the event agreement is reached with the Loan Note Holders by 15 February 2011 and such recapitalisation is not implemented by 15 March 2011, then the Loan Notes will become immediately due and repayable on 15 March 2011. In either case GTE will not have sufficient cash to repay the Loan Notes. In such a case, the Company would have to seek alternative funding. There can be no guarantee that such funding could be obtained on acceptable terms or at all. If no such funding was obtained the Company would be required to address insolvency issues which could lead to placing the Company into insolvent liquidation.

The Loan Notes have also been amended to provide that a waiver consent fee equal to 20% of the principal amount of the Loan Notes will become payable to the Loan Notes Holders if the recapitalisation of the Loan Notes is not effected by 15 March 2010 (in which case such Loan Notes become immediately repayable) or there is a change of control of the Company prior to such recapitalisation being effected. Furthermore, in the event that there is a change of control of the Company prior to effecting a recapitalisation of the Loan Notes then additional interest of 10% p.a. will be payable by GTE on the Loan Notes from 31 December 2010 until such payment is made. The Loan Note Holders have also agreed to defer accrued interest due and payable on the Loan Notes due to be paid on 31 December 2010 until 31 January 2011.

The terms of the Warrants have also been amended. The exercise price of the Warrants currently GBP0.10 per Ordinary Share has been amended so that in the event a recapitalisation of the Loan Notes is not effected (as described above) or there is a change of control of the Company prior to effecting such recapitalisation, the exercise price will be reduced to GBP0.002 per Ordinary Share.

The D Loan Notes and the amendments to the Loan Notes are conditional upon certain conditions being satisfied. The Company will issue a separate announcement confirming when such conditions have been satisfied.

The D Loan Notes entered into with Generation and Zouk constitute a related party transaction under the AIM Rules due to the fact that Generation and the Zouk are each substantial Shareholders. The proposed amendments to the A, B and C Loan Notes also constitute a related party transaction with Generation and Zouk for the same reason.

The Directors consider, having consulted with Matrix (GTE's Nominated Adviser), that the terms of the D Loan Notes are fair and reasonable insofar as the Shareholders are concerned. In coming to their opinion, the Directors have had regard to a number of factors including the current financial position and existing funding of the Group.

The Company has received irrevocable undertakings to vote in favour of the Resolutions from Generation and Zouk, who together hold 31,395,681 Ordinary Shares, representing approximately 30.77% of the Ordinary Shares in issue.

Directors' intentions

The Directors unanimously recommend that Shareholders vote in favour of all of the Resolutions at the General Meeting, as they themselves intend to do in relation to their own entire registered holdings of 442,663 Ordinary Shares representing, in aggregate, 0.43% of the Ordinary Shares in issue.

A copy of the circular is available on the Company's website.

For further information please contact:

Gas Turbine Efficiency plc

John Grant, Executive Chairman Tel: [phone]

[gdasinv2] 31/12/2010 10:22

GTE is set to be 35 - 40 p next 2-3months. I have Great Confidence when they returned @11p for Aviation shell just about the Current market cap excluding Core Assets,

Then by Core Assets Valuation surely can be sold at much higher @35-40p, in this Case The actual share valuation and Current Contracts in US and Europe - should be around 60-70p in my opinion. Just no Brainer, I bought another quarter million last 2 days.

Also not much share available in market...so should spike multi fold very quickly.

[gdasinv2] 31/12/2010 10:22

GTE is set to be 35 - 40 p next 2-3months. I have Great Confidence when they returned @11p for Aviation shell just about the Current market cap excluding Core Assets,

Then by Core Assets Valuation surely can be sold at much higher @35-40p, in this Case The actual share valuation and Current Contracts in US and Europe - should be around 60-70p in my opinion. Just no Brainer, I bought another quarter million last 2 days.

Also not much share available in market...so should spike multi fold very quickly.

[jakleeds] 31/12/2010 09:58

And we are off.

[joe the plumber] 31/12/2010 08:14

Added a few more not showing?

[empirestate] 30/12/2010 17:57

CR, would be good to gear yr thoughts on this one. i still have a significant holding here.cheers

[joe the plumber] 30/12/2010 16:08

Same here been buying

[cockneyrebel] 30/12/2010 16:01

Been buying these on the dip today.

CR

[gdasinv2] 30/12/2010 15:03

Well as you can imagine y.day 151% rise, obviously taking a profit etc, but everyone agree that Cash they got from aviation business @11p per share is more than the current market cap, So including the current core business my valuation still remain at 35p a minimum. We just have to have some patience.

[gdasinv2] 30/12/2010 15:03

Well as you can imagine y.day 151% rise, obviously taking a profit etc, but everyone agree that Cash they got from aviation business @11p per share is more than the current market cap, So including the current core business my valuation still remain at 35p a minimum. We just have to have some patience.

[6kenny] 30/12/2010 13:53

jak,good posts....so company sale it is....just need to be patient as these things take time.

when all the traders move on, I expect we will settle at the 4-5p range for a while.

[tullynessle] 30/12/2010 12:33

Does disposal of the Aviation business facilitate the entry of a (the) "Strategic Investor" in circumstances where the "Strategic Investor" is engaged solely in supporting the Energy / Oil & Gas Sector?

Note the reference to "at this time" in the extract below.....




Extract from GTE RNS dated 29th Dec, 2010

"The Company announced on 18 October 2010 that discussions with a strategic investor had concluded and that the strategic investor had decided not to make an investment in the Company at that time"