Mccoll's Retail Share Discussion Threads

[mrblueface] 10/5/2022 19:55

Hopefully, I want to wait outside my local shop and cheer when staff get made redundant PMSL

[mrblueface] 10/5/2022 19:53

No mention of shareholders because there aint none PMSL the shares went to zero 0p LOLOLOL

[cliff edge] 10/5/2022 19:50

Assuming mc colls paid Morrisons for the stock as and when they had sold it, then there should be no debt to Morrisons?. The stock in the stores belonged to Morrisons until it was sold and would therefore still belong to them when they took over, so it's all down to how up to date they were with their payments at the time of administration. If Asda had been successful in their bid, then they would have to have paid for all of the stock in the stores in addition to all other outstanding debts.

[loganair] 10/5/2022 19:39

• The secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors


No mention of shareholders...


The categories are as follows in descending order: secured creditors with fixed charges, preferential creditors, secured creditors with floating charges, unsecured creditors, and finally shareholders.

[pwhite73] 10/5/2022 19:16

Kinwah - Its a question of wait an see because when we talk about shareholders we tend to talk about fly by night day traders like ourselves. However many large companies have thousands of employees in their Sharesave schemes and employees also owning shares from share save schemes. Is Morrisons going to nullify all the McColl's Sharesave schemes and wipe out the shareholdings of employees in McColl's.

Given that Morrisons is cash rich I am not wholly convinced of a complete shareholder wipe out. Indeed if you believe what's written on LSE chat this is the reponse one poster received from McColl's.

"We will be issuing the Joint Administrator's Proposals in the coming weeks which will contain details regarding any potential return to Shareholders."

[kinwah] 10/5/2022 19:03

PWhite nice try but Morrisons is not a connected person for the purposes of the 2021 regulations. There is a good explanatory video on youtube from Wilberforce Chambers. The fact that there was an auction between the Issas and Morrisons means that there is prima facie evidence that full value was obtained for the disposal to Morrisons. I think Morrisons probably overpaid but they had the most to lose being the main unsecured creditor. My understanding is that all employees will be TUPE'd across to Morrisons therefore Morrisons will respect employment rights being a responsible employer. However they are a commercial company so they will evaluate the situation and 'rightsize' the business which probably does mean redundancies and property disposals. Shareholders lose everything and unsecured creditors might expect to lose around half of what they are owed. A pity for suppliers like window cleaners, local councils, shopfitters etc. It's a reminder that shares are risk capital - shareholders get dividends and a valuable share in the business if it does well but if it fails they lose their investment. Another example of this is NMCN which went bust with unsecured creditors stiffed for £115 million according to reports. Shareholders lost their investment having enjoyed dividends for several years but it was the unsecured creditors who really suffered.

[a_2_b] 10/5/2022 18:59

Are we still welcome on the 31st

[rookieswingtrader2020] 10/5/2022 18:58

Exactly: "a distribution also expected to unsecured creditors". Key word there is "a". It won't be a payment in full for the unsecured creditors.

[rookieswingtrader2020] 10/5/2022 18:56

People who participate in a rights issue are not even "kind of" unsecured creditors. What they get in return for the share capital is the newly-issued share, thereby avoiding dilution.

[loganair] 10/5/2022 18:55

The transaction will be structured through a pre-pack administration:


• Morrisons will acquire all of McColl’s 1,160 stores which include 270 Morrisons Daily format stores

• All McColl’s colleagues will be transferred with the McColl’s business to Morrisons

• McColl’s two pension schemes will be taken on by the Morrisons Group

• The secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors

• Morrisons Wholesale Supply Agreement to McColl’s stores will continue


No mention of shareholders...


The categories are as follows in descending order: secured creditors with fixed charges, preferential creditors, secured creditors with floating charges, unsecured creditors, and finally shareholders.

[a_2_b] 10/5/2022 18:54

Reckon it's all headroom? Or is the cash still in a account somewhere?

[rookieswingtrader2020] 10/5/2022 18:52

FWIW:I agree that the shares have no value.I disagree that MCLS' debts have been paid in full. In fact, that is part of the very reason why I agree that the shares have no value.

[a_2_b] 10/5/2022 18:50

12mil spent and 8mil left on conversions by my maths

[loganair] 10/5/2022 18:48

I do not understand why any share holders still think they shares maybe of any value?

Morrison's have paid McColl's debt in full and guaranteed the pensions, in return they now own all McColl's leases and McColl's business - what is left for the shareholders? Absolutely nothing.

[a_2_b] 10/5/2022 18:46

There's a super slim chance we may receive something. We're not even classified as a unsecured creditors even though we kind of were to the tune of 20 mil, which I'd say just over 10mil was used considering 270/450 conversions were completed. I'm wondering how they actually spent the other 10 mil though considering it's curtains currently. Not expecting a thing, but considering the situation it's only fair imo.

[rookieswingtrader2020] 10/5/2022 18:43

Blue has been a boring imbecile for quite some time.I agree with you that what we're dealing with here is an insolvent administration that will lead to liquidation.And so White & I may disagree on the technicalities, but at least he's capable of holding a sensible discussion, unlike Blue.

[rookieswingtrader2020] 10/5/2022 18:38

Thank you for the absolutely perfect example of my point, moron.

[rookieswingtrader2020] 10/5/2022 18:33

You seem to know more about it than the sourced newspaper articles.

[shanejay74] 10/5/2022 18:23

So could employees be made redundant

[pwhite73] 10/5/2022 18:05

RST2020 - "my understanding is that only secured creditors will be paid in full; unsecured creditors are expected only to be paid in part."

This is simply not true because Morrisons bought McColl's under a pre-pack administration and is cash rich. The rules for pre-pack administrations were toughened up in new laws in April 2021. The Administration (Restrictions on Disposal etc to Connected Persons) Regulations 2021.

All stakeholders have to be taken into account. The administrators have to look at what the buyer can reasonably afford and cannot simply take the predetermined view shareholders will get nothing because they are only shareholders.

[kinwah] 10/5/2022 17:30

Rookie, I don't think Mr Blue is having a go at you. It's not impossible for a quoted company to survive after administration as a shell company but it is extremely rare. I can only remember one instance of it happening where a plantation company Moran Holdings plc lost a packet on a Manchester property development and it is still going as a transport company, Trans Global. MCLS shares no longer meet the requirements for listing so the listing will be cancelled in due course.

[rookieswingtrader2020] 10/5/2022 16:33

It's not about "waking up", it's about working through the technical legal understanding of the mechanical administration process. Something which, for all of your posts' great clarity on the end result, you haven't been able to offer a single word on, I suspect because it is largely over your head.

[rookieswingtrader2020] 10/5/2022 16:29

FWIW I share Kinwah's understanding, i.e. my understanding is that only secured creditors will be paid in full; unsecured creditors are expected only to be paid in part. And so the result would be liquidation in order to cleanse the unpayable balance of the legal liability.

[mrblueface] 10/5/2022 16:16

Wake up you novice PMSL shares WILL be delisted and shops rebranded :) SHAREHOLDERS LOSE EVERYTHING :)