International Ferro Metals Share Discussion Threads

[konil] 01/12/2015 11:49

rettah, tend to agree with you, which begs the question why they decided to go down this route rather than keep soldiering on?? perhaps the debt facility was about to be pulled, but then management repeatedly stated they were confident alternative sources could be arranged.

[konil] 01/12/2015 11:46

there appear to be many other costs, other than the debt - i haven't got a handle on the total.

seems much worse than anticipated, possibly because the impairment charges literally decimated the asset values - which is both surprising (because started with 11 interested parties) and not surprising (because only 3 came up with offers and they obviously lowballed given the prevailing market conditions).

looks like samancor are getting the assets for less than 10% going concern valuation.

need clarification and i hope i'm mis-reading it!

[rettah] 01/12/2015 11:41

After a quick look through the plan I'm fairly sure we'll be getting nothing.

[tomboyb] 01/12/2015 11:14

Anyone spoken to the management -

Looks pretty much lowball to me -

[gark] 01/12/2015 10:59

After debt paid down of ZAR 500mn, left with ZAR 220mn or roughly GBP 11mn. Roughly 2p a share.

[tomboyb] 01/12/2015 09:19

nternational Ferro Metals Publication of Business Rescue Plan
01/12/2015 9:00am
UK Regulatory (RNS & others)


TIDMIFL

1 December 2015

International Ferro Metals Limited

("IFL" or the "Company")

Publication of Business Rescue Plan

Further to the announcement released by the Company on 15 September 2015, the
Company announces that the Business Rescue Plan ("Plan") in respect of its
South African subsidiary, International Ferro Metals (SA) (Pty) Limited
("IFMSA") proposed by the Business Rescue Practitioner is now available on the
Company's website.

The Plan will be considered by creditors at a meeting on 7 December 2015.

At that meeting, the Business Rescue Practitioner will seek approval of the
Plan to implement an offer received from Samancor Chrome Limited ("Samancor").

It currently is not possible to assess with any certainty what potential return
may be received by the Company if the Plan is implemented because of
uncertainties related to future costs and cash flows to fund the business
rescue proceedings. The Plan does provide an illustration and estimate of the
potential distribution to creditors of IFMSA in terms of the Plan. The Plan
assumes that the proceeds derived by IFMSA from the proposed transaction will
be an amount of R720 million. However, it is no more than an example and is not
binding on the Business Rescue Practitioner. The illustration is subject to
change depending on the circumstances at the time the distribution is to be
made.

The principles of the offer from Samancor are as follows:

* currently is non-binding, and will only become legally binding once
comprehensive sale and purchase agreements are executed;

* has offered an aggregate consideration of ZAR720 million of which:

* ZAR650 million is for the business and assets of IFMSA; and
* ZAR70 million is for certain receivables of Sky Chrome;

* is subject to a number of conditions being satisfied before Samancor would
be required to complete the acquisition, including obtaining regulatory
approvals and consents of other parties to certain material contracts,
which are usual for transactions of this nature.

Further announcements in relation to the Business Rescue process will be
released in due course.

- ENDS-

For further information please visit www.ifml.com or contact:

International Ferro Metals Limited Tel: [phone]

Chris Jordaan, Chief Executive Officer

Numis Securities Limited Tel: [phone]

James Black / John Prior / Paul Gillam

About International Ferro Metals:

International Ferro Metals produces ferrochrome, the essential ingredient in
stainless steel, from its integrated chromite mine and ferrochrome processing
operations in South Africa. International Ferro Metals is listed on the London
Stock Exchange under the symbol IFL.

Forward Looking Statements

This announcement contains certain forward looking statements which by nature,
contain risk and uncertainty because they relate to future events and depend on
circumstances that occur in the future. There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward looking statements.



END

(END) Dow Jones Newswires

December 01, 2015 04:00 ET (09:00 GMT)

[tomboyb] 30/11/2015 09:32

NAV was around 20p per share after accounting for debt -

30th was the date given for expressions of interest -

The BRP envisaged that a bid process would take two to three months to implement, whereas pursuing the currently interested parties should accelerate the process.
In order to allow sufficient time to finalise the bid process, the BRP proposed a motion to extend the date for publication of the Business Rescue Plan until 30 November 2015, which motion was passed by the requisite majority of the creditors.

[konil] 30/11/2015 09:28

after a small rise in august the fecr price seems to have fallen off a cliff in sept. that wont help negotiations.

i wonder if expressions of interest are converting into concrete offers or not even making it to the table.

update from ifl due soon i guess.

[stockriser] 25/11/2015 12:17

Pan African will protect rights in IFM rescue

[konil] 09/11/2015 08:22

i could be wrong but i thought 20p was nav i.e. after allowing for debt.

does anyone have a definitive source and answer to this?

[gark] 08/11/2015 19:53

Problem is debt is worth 6-7p a share so that takes out a lot of value. Can't see anyone taking it with the debt at that kind of valuation.

[konil] 06/11/2015 17:23

also from the 15 sept rns...

"The rescue would most likely entail a sale of the assets/business and/or equity of IFMSA."

...so who knows indeed!!

[holmess] 06/11/2015 16:30

Interesting konil. I'm assuming just sale of assets not going concern, but who knows!12p and I'd be doing cartwheels :)There has been a bit of chatter this week that several top fund managers are calling a bottom on commodities, and China might not slowdown to the extent prices in, so you never know. Just a shame the SA economy and ZAR are going down the pan - strikes everywhere.

[konil] 06/11/2015 15:00

holmess, i think you are probably being realistic, i just hope the outcome is better.

unfortuately i dont have a detailed understanding of the basis of sale, for example will it be as a going concern, in which case there should be some allowance for existing contracts, trade relationships, goodwill etc.

or will it be a sum-of-the-parts valuation with no consideration for goodwill etc.

much will also depend on the state of play in the fecr market and signs for the future. there seems to have been a small uptick in fecr price in august and it seems to have found a floor over the previous couple of years. who knows what will happen to s/s demand - is china still slowing, has it stabilised, will it see a renewed demand spike???

the buyer will argue the downside, ifl will argue the upside, but ifl will only have bargaining strength if there is more than one potential buyer.

from the 15th sept rns "The BRP also informed the creditors that there are currently a number of interested parties." and "The BRP envisaged that a bid process would take two to three months to implement, whereas pursuing the currently interested parties should accelerate the process."

assuming a sum-of-the-parts nav is c.20p (not sure where this came from!), but allowing a 30% discount to nav for sale price and 10% for costs should see c.12p being returned. perhaps optimistic.

but it could be better if sold as going concern to one of a number of bidders.

imo, dyor, nai, etc. etc.

gl.

[holmess] 06/11/2015 09:59

Just a stab in the dark konil! I can afford to be sanguine as my buy price is low. I just know how much the lawyers and other parties carve up in these situations.What's your expectation of return value?

[konil] 06/11/2015 09:53

imo those are optimistic timescales but hope you are right.

hope you are dead wrong about the valuation though.

[holmess] 06/11/2015 08:44

I'm expecting to get news before end of Nov. Deal closed before year end (subject to shareholder approval), cash coming back by end of Jan.I think something around 6p per share ;)

[konil] 06/11/2015 08:23

i guess today's rns means a deal in the dec/jan timeframe with a shareholder vote by end of jan??

who knows what schedule for payments after that...by end march would be good but maybe optimistic...just hope it doesn't get dragged out as staged payments over x years etc. or worse still (part)-exchange for shares in some obscure / illiquid entity.

[rettah] 28/9/2015 21:13

4th quarter price down 3.7%;
hxxp://www.platts.com/latest-news/metals/london/european-q4-ferrochrome-benchmark-down-4-cents-26222061

However, USD up about 10% v rand in the last 3 months as well.

[tomboyb] 17/9/2015 10:44

hxxp://www.metalbulletin.com/Article/3489162/IFM-woos-3-4-potential-bidders-for-South-African-FeCr-assets.html#axzz3lzDWP2RA

Metalbulletin.com / IFM woos 3-4 potential bidders for South African FeCr assets

IFM woos 3-4 potential bidders for South African FeCr assets
September 16, 2015 - 16:33 GMT Location: London

International Ferro Metals (IFM) has attracted the attention of three to four potential buyers for its South African ferro-chrome subsidiary, since it went into business rescue in August, Metal Bulletin understands.

The London-listed ferro-chrome producer announced it had entered business rescue due to "deteriorating business conditions". It confirmed the next day that it had shut down its ferro-chrome plant....

[tomboyb] 16/9/2015 14:58

Whatever it is, we will find out soon enough - I estimate around 4-6 weeks for something with pursuing bid parties -

"bid process would take two to three months to implement, whereas pursuing the currently interested parties should accelerate the process."

Good luck to all current shareholders -

[konil] 16/9/2015 14:45

as tempting as it is to get optimistic, i wouldn't.

ifl are in distress else they wouldn't have initiated brp. in such circumstances potential buyers know they have the vendor 'over a barrel' and will not pay what in normal circumstances would be the 'going rate' for assets.

i would much have preferred ifl to keep slogging through the downturn, becaue imo the company is worth hugely more as an operating entity than the sum of its parts, but obviously they could not get a better debt facility and the existing one ran out of headroom, so here we are.

hope for the best but prepare for the worst, as the saying goes.

gla.

[tomboyb] 15/9/2015 21:00

When you consider the assets available to IFL - it is still very significant

Almost £100mill worth - NET ASSETS

Suspension at £5mill -

[tomboyb] 15/9/2015 20:15

Updated Proactive -

[...]

nternational Ferro Metals’ (LON:IFL) South African ferrochrome operations have a chance of being saved with some bid interest, according to the country's Business Rescue Practitioner.

At a creditors’ meeting the BRP said there are a number of interested parties but details of the potential bidders and possible offers were not provided.

IFL put its businesses in South Africa (IFMSA) into their equivalent of administration last month after a slide in ferrochrome prices pushed it into the red.

A bid process would take two to three months to implement, said the BRP, and the rescue plan publication deadline has been extended until 30 November 2015.

IFL wants to sell its interest in IFMSA and also Sky Chrome owner Purity Metals during this period.

It believes that after satisfying creditors and transaction expenses, a surplus should be generated that can be distributed to shareholders.