 Riverstone results today. RCOI
Harland & Wolff - In March 2022, RCOI participated in a $35.0 million first lien Green Term Loan to Harland & Wolff ("H&W"), an infrastructure operator engaged in the development and operation of strategic maritime assets across the United Kingdom. This loan has subsequently been upsized to $140 million and was due December 2024.
At the initial closing RCOI committed $11.8 million. This has subsequently been upsized to $14.6 million. As of 31 December 2024, $14.6 million remains invested, reflecting 30.5 per cent of RCOI's overall commitments.
As part of the terms of the loan, RCOI has also been granted 5.1 million warrants, which have been written down to zero given the Administration for H&W that was filed on 14 January 2025. As of 31 December 2024, the total fair value of Harland & Wolff to all RCP lenders was $112.7 million
Post period-end, on 29 January 2025, the assets of Harland & Wolff have been sold for a cash consideration of $86.9 million, as well as the waiving of the debt of $28.6 million by Navantia UK. Exclusivity was agreed in October 2024 in exchange for Navantia UK providing debt funding to the Harland & Wolff Group, and this was linked to an agreement to share recoveries with Navantia UK on a 50/50 basis in respect of Navantia UK's debt funding. As part of the transaction, those rights were waived by Navantia UK.
Purchase price consideration along with cash left in the business, after administrative and deal related expenses, are expected to result in recoveries of c. $86.1 million to Riverstone Credit Partners ("RCP") and affiliated funds, including RCOI. The Administrators made an initial distribution to RCP of c. $54.4 million on 31 January 2025 and have estimated that future distributions will total c. $31.7 million over the coming months. The initial distribution will fully satisfy the super priority term loan and therefore all future distributions will be shared pro rata amongst all the Riverstone funds invested in Harland & Wolff. RCOI did not share in the initial distribution but will receive $4.7 million in the coming months for its share of the assets that have been sold.
In parallel to the process to sell the operating yards, Rothschild & Co has also run a process to solicit interest in acquiring Harland & Wolff's Islandmagee Gas Storage project. Once constructed and operational, Islandmagee salt dome caverns will have the capacity to hold around 500 million cubic meters of low carbon gas and/or hydrogen, increasing UK gas storage capacity by c. 33%. Given the shortfall on amounts owed and security held over the entirety of Harland & Wolff, RCP and affiliated funds hold the economic interest in Islandmagee. As of 25 February 2025, the Islandmagee asset has not yet been sol |
Racked up £225mln of debts on the never never, misled shareholders and lined own pockets. And not the first offence. At a mimimim should never be allowed to run another company |
The problem remains the same, four under utilised expensive to run inefficient shipyards that burn cash, therefore, Navantia must've been offered a very sweet deal to save them.
Still say they need to close the other three and consolidate into one yard - NI.
Wait till the greedy lazy unions start holding their hands out for more money again. |
As for bailing put Hsrl.they only had to guarantee a loan .could have cost taxpayers if we failed but giving better terms to navantia is taxpayers money is it not... |
Jak.john Wood.and government ...who can forget woods picture outside number 10.All this was planned right from the getgo when the company infrastructure was wrestled from the previous board of directors.A gas expert shipped in to sort out island nagee for the scenario we are in..The ridiculous delays with the marine licence suggested to me something other than environmental concern. |
It will be interesting to see how much Riverstone got back.
Shareholders sold down the river however you look at it. |
If anyone "royally screwed shareholders" then it was HARL's management team who hopelessly mislead shareholders for numerous years about HARL's prospects, both (a) on profits (there never were any and, even with the big contract win, there were unlikely to ever be any), and (b) on the appetite and chances of debt finance being made available.
Furthermore, there is no law that a government *must* bail out a failing company and certainly no reasonable expectation that any government should bail out a failing company in a manner that leaves shareholders in profit!
And, once again, I would point out that Riverstone are going to take a massive hit on their debt. The idea that shareholders should recover *anything* when creditors are losing out, would completely contradict the fundamental mechanism of how financial markets work!
JakNife |
Porky9
I think it would be worth you looking back at some of the company's previous RNS announcements; 2 will suffice :
08/11/21 RNLI - see my post 166 on here. Unfortunately the RNLI link no longer works. But, effectively, RNLI said that the announcement was a wild exaggeration.
10/12/20 Triumph Subsea. LOI re 2 vessels of £350m each. Triumph Subsea Services Ltd Scottish company SC676930 was registered 07/10/20, capital £100. It never filed accounts and was compulsorily struck off 07/03/23. However its website had, surprisingly, sprung to life 11/06/20 with a series of announcements of news including contracts, collaborations, LOIs etc before it was established...... Odd for a company not yet in existence..... To a casual observer, it might appear that H&W had entered into a LOI with a pukka company..... In their Trading RNS 30/06/21, H&W, mentioned that the LOI had been "set aside" - to which there was a bit of theatrical mutual recrimination with Triumph; after this Triumph's website went silent. There are several interpretations that could be put on this sequence of events ranging from H&W being startlingly naive to speculation as to why Triumph & its website was set up....
Worth pointing out that both announcements were followed by fund raises. |
porky9,
"No - What HARL actually wanted was a guarantee from the government so they could refinance the debt, HMG could have agreed an 80% guarantee."
What HARL wanted was hopelessly unrealistic, it always was and should have been plainly obvious to anyone with just some basic financial acumen. The balance sheet had a massive blackhole, the business was massively loss-making and it was forecast to continue making losses for at least the next three years.
If the Government had agreed to the guarantee then all that it would have done is kick the can down the road with administration happening two or three years later instead of when it did happen and leaving the taxpayer having to pick up a much larger bill than they are otherwise going to. And, in the meantime, Riverstone would have walked away with $100m+ of taxpayer money that they didn't deserve.
The real travesty here is that the CEO was permitted to lead shareholders and Riverstone on a merry dance for such a long time. There were numerous times when he was obviously lying, including what he told everyone about the likelihood of a government guarantee and the progress that was claimed.
JakNife |
htrocka,
"Every one wins.....except the share holders.....what a racket."
It's also expected that Riverstone will have to write a significant chunk off of their debt (more than 50%).
In the circumstances where the debt providers are getting hit so badly it's entirely reasonable that shareholders get wiped out.
JakNife |
Every one wins.....except the share holders.....what a racket. |
Sadly very true.
Pandora's box well and truly opened :- |
There's a reason why HW failed in the first place and currently again, economic viability. What's ironic is that, even though it's loss making, the greedy unions were holding out their hands for more pay.
300m isn't small change either, it's yet another outgoing on top of the ship build contract.
UK government seems clueless in awarding and selecting contracts, this was a failure right from the off and would've been more cost effective to just hand the whole contract to an established proven entity - Navantia - in the first place.
Rescuing and bolting together four under utilised yards was a flawed concept in the first place, there seems to be no business experienced people involved in setting up these Gov. awarded contracts. |
From the 5th :- |
The Armada has last laugh |
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