Mar City Share Discussion Threads

[barnetpeter] 02/4/2015 20:31

Not long now I think. Timber.......If all this stock does get dumped as a fire sale I cant see it stopping at 20 pence.

[joe_satriani2] 02/4/2015 16:09

I'd top up at 20p if it did crash!

[a2584728] 02/4/2015 15:49

Below 34p for 5 consecutive trading days.

[someuwin] 02/4/2015 14:49

Precipitous.

[a2584728] 27/3/2015 16:46

I hear some subbie working for mcdl have gone into liquidation today?

[grlz] 27/3/2015 13:08

That's the problem with targets. The market tests them.

[a2584728] 27/3/2015 07:52

The 34p looms ever closer, the owners must be shaking.

[a2584728] 26/3/2015 12:41

they need a proper CEO in there with hands on.

[someuwin] 26/3/2015 08:53

Getting dangerously close to the key 34p.

[grlz] 25/3/2015 16:43

HSBC could end up owning this outfit via a loan default

[a2584728] 25/3/2015 12:17

I am getting that sinking feeling.

[a2584728] 25/3/2015 08:47

AIM rules hahahahaha, do what you like when you like, just don't embarrass the AIM team!!!!

[a2584728] 25/3/2015 07:07

2 months to sort the mess created by you? It must be one hell of a mess!!!!!!!!!!!

[a2584728] 23/3/2015 08:08

we could see a bid for these at this level.

[boilinthebag] 20/3/2015 12:51

Thanks A2584728. I note this is a Personal Loan to the Ryan's and the Company mentions it purely as the security of the 51,0000,000 shares has been granted to HSBC.

It was subject to Covenants, some of which are detailed in the RNS.
I just think that we have no way of knowing if any of these prevented the Loan going ahead, or indeed, if it did, has Mar City received the money.

If LBO above is right, then, that money would already be spent.

Just gives EK more fuel to pour on the fire.

[a2584728] 20/3/2015 12:24

you have to bear in mind that the Ryans operate this PLC as if its their own personal small cash cow and therefore will always treat PI's with absolute disdain.

I understand that the staff are unhappy with the way they are treated as well, only a rumour but no good rumours about MAR anywhere.

[boilinthebag] 20/3/2015 11:51

Sorry Graham, 'hoped' is from a journalist quote.

The RNS on the 20th February mentions the £10 million Repayment was 'expected' the next week. Therefore, the Ryans must have been already negotiating the Loan before this date as their means of repayment. That is, before the share price drop. The full details of the Covenants are not declared.

The Loan, as the means of repayment was then announced by Mar City on the 23rd.

All this does not alter the fact that with the share price dropping further today they could easily produce another RNS as to whether the expected money has arrived.

This may help the share price stay above the critical 34p level.

[lbo] 20/3/2015 11:28

On 16 December 2013, Mar City PLC assumed the bank debt associated with the land sites it acquired through its acquisition of Mar City Land Ltd.Six of the loans totalling £9.7m are repayable on the earlier of the sale of the developed sites or 30 June 2015

[grahamburn] 20/3/2015 09:57

I think your reference to:

"The loan may not have gone ahead when the share price dropped so heavily, or, there may be a delay for renegotiations."

is not strictly as per the timeline of events.

The Trading Update and Debtor RNS was on 20 February and that caused the dramatic fall in the share price.

The Director Shareholder RNS which announced the loan secured by the Ryans and the associated pledge was on 23 February together with timeline for repayment of the loan.

So, though I accept it is a tight scenario, the FINAL signing off for the loan and the security would have presumably been after the "disastrous" Trading Update (which I was less perturbed about than the market and others - see my post at the time). In short, the safety margin - some 50% below the market price on 23 February seems there or thereabouts.

One final quibble on wording. The RNS on 23 February said the company "expected" the two tranche payment to be made during that week. It did not say "hoped".

However, as always, I stand to be corrected on all this in the light of future events, as the credibility of the management and its control and planning processes need to be restored and reaffirmed over the next few months. That may start when the results are published next month (we hope/expect!), though any definitive judgement may take a good while longer.

[boilinthebag] 20/3/2015 08:28

I agree Grahamburn, it is just that the safety margin is so large compared to the share price at the time of negotiating for this loan. The Bank would never make the loan if they thought that there was a serious chance of default.
However, this is a loan to their company not Mar City, who may very well have the money, but it only said that they 'hoped' to have the money in their account.
Just feel an update from the company would be appropriate. The loan may not have gone ahead when the share price dropped so heavily, or, there may be a delay for renegotiations.
Hopefully all is well, but poor not to update the shareholders when they released news about the loan to the market.

[grahamburn] 19/3/2015 18:03

Don't think you can make any assumptions about the "notional value" put on the shares pledged by the Ryans to HSBC as security for the loan. Banks invariably value publicly quoted shares at prices way way below the current (or expected) market value when those shares are used as security. That ensures the bank has a very high safety margin should the loan go bad or the market crashes.

[boilinthebag] 19/3/2015 15:27

Thanks Badtime. I just meant that HSBC only put a value of 21 pence on their near 51 million shares as security for the loan. The other thing was that this money was a loan to their company to pay Mar City, that is, it wasn't coming to Mar City direct from the bank.

[badtime] 19/3/2015 12:21

There's a circular that was due to be sent this month..maybe the update will come at the same time Re share price I doubt if that's surprised anyone considering the trading update and it does appear to have stabilised

[boilinthebag] 19/3/2015 10:39

Funny that it is a month since they updated us on the Debtor position, with no further mention of the £10 million they were going to receive. With the share price down so far, it seems odd that they have not said if they have actually received these funds.
Will the rest of this debt ever get paid if the Ryans had to carry out the transaction at such a low share price value.