New Star Asset Management Share Discussion Threads

[maak128] 04/12/2008 18:01

whats the future for the sp?..... suspension? any chamce itll increase?

[barnetpeter] 04/12/2008 17:11

What a shambles. 400p to a penny and a bit in just over a year. How do you do this? Is there a training school where you learn to turn a billion pounds into dust?

Rotten luck if you hold.

[gazzastrip] 04/12/2008 16:10

The way this has been handled is very poor and, like others have said, smacks of a cover up at best or lore likely a stitch up.

It is being reported that the deal has been done. Surely that is not the case as dont shareholders get the chance to vote?

Does anybody know the major shareholders in New Star anyway?

I cant help but think there were other options available, but once more the shareholders get fleeced. Off the top of my head i would have thought they could have sold some funds to toehr groups to raise revenue and write down the debts.

Alternatively, they could have doena rights issue. As a shareholder i would have felt better putting more money in but still owning a stake in something that has a value and is tradeable than simply letting it get screwed by the banks.

It wil be interesting to see what comes out over the next few days.

[riptracker] 04/12/2008 15:21

wWe now a song about this company dont we , Johnny: " Catch a falling star and put it in your pocket £150 million and walk away" leaveing 1p to holders, Close the door the New star as fallen....

[riptracker] 04/12/2008 14:19

Hey dude got a spare dime for old star from 5p this morning to 1p today and mr duffield as ran with the money £150 million.

[riptracker] 04/12/2008 10:03

Not looking good for new star who ever bought in at 7p ish due to de list and 1p is here as mentioned in the Guardian. Help.

[patricktrfc] 04/12/2008 08:40

Brad

Will be safer..more stable company etc etc

[brad1] 04/12/2008 08:32

ANYONE KNOW THE FATE OF THE nEW STAR CHILD TRUST FUND?

[typo56] 04/12/2008 08:19

Gazzastrip, NSAM are not on the FSA list and I happen to know it has been possible to short, eg via IG.

I get the impression that the FSA have not been willing to create an artificial market on NSAM, either by putting them on the restricted short list or by granting them a suspension.

[westcoastrich] 03/12/2008 20:59

imagesound plunged in the days before delisting.....

[nicd] 03/12/2008 20:57

Just done a search on delisting, here is an example (NOT NSAM):

"From start to finish, it took about three months to delist from the market. To delist from the LSE, 75 per cent of shareholders have to approve the proposal (as opposed to 100 per cent when going fully private). Pratt says that 70 per cent of Imagesound's shares were held by 15 people, so it was straightforward to know what direction the company could take.

'It's not a buy-out. All we have done is delist. The shares are still out on the open market; they are now traded on a match bargain basis by Brewin Dolphin over in Manchester. In fact I went and bought 16,000 shares the other day.'"

[westcoastrich] 03/12/2008 20:03

people in the "know" have been shorting this and made a 100% gain. nod nod wink wink

[nicd] 03/12/2008 19:54

New Star intends to de-list as part of the Restructuring


what does that mean for us PIs?

[mister md] 03/12/2008 19:19

don't know if last part of this report offers a glimmer of hope, else shareprice is screwed again tomorrow


New Star's Banks to Swap $354 Million of Debt for 75% Stake
Email | Print | A A A

By Kevin Crowley and Jon Menon

Dec. 3 (Bloomberg) -- New Star Asset Management Plc, the fund manager started by John Duffield in 2000, said lenders will take control after its share price dropped 95 percent in three months.

Creditors will convert 240 million pounds ($354 million) of debt into a 75 percent stake, leaving existing shareholders with a 25 percent, the London-based company said in a statement distributed by PR Newswire. New Star plans to delist the stock.

"The proposed new capital structure is intended to eliminate any negative impact of New Star's debt on its business, whilst retaining potential value for equity holders," New Star said in the statement.

The fund manager was forced to renegotiate debts last month and agreed to pay a higher interest rate as assets under management fell to 13.9 billion pounds as of Nov. 30. Clients have "signaled their concerns" about the debt as the economy deteriorates, the company said.

HBOS Plc, Lloyds TSB Group Plc, Royal Bank of Scotland Group Plc, HSBC Holdings Plc and National Australia Bank Ltd. will control the bank, New Star said.

Robin Geffen, managing director of Neptune Investment Management, is preparing to make an offer for New Star, Geffen spokesman Gordon Puckey said before the debt restructuring was announced.

[westcoastrich] 03/12/2008 17:40

* New Star intends to de-list as part of the Restructuring




bye bye GOODNIGHT MIDNIGHT

[djpreston] 03/12/2008 17:28

New Star Asset Management Group PLC

("New Star")

Proposed Capital Restructuring

* New Star announces a proposed Restructuring that will result in £240
million of its £260 million of gross debt being converted into equity

* New Star currently has £30 million of cash so that, if the Restructuring
were effective today, New Star would be left with net cash

* New Star's bank syndicate will own 75% of New Star's enlarged fully diluted
ordinary share capital and £94 million out of £100 million of new
convertible redeemable preference shares to be issued by New Star

* New Star intends to de-list as part of the Restructuring

New Star announces that it has reached agreement in principle with its bank
syndicate (the "Banks") on the terms of a proposed capital reorganisation of
New Star (the "Restructuring") that will leave it able to concentrate on its
investment performance and client service as an unlisted company.

As the credit crisis has deepened since September, a number of New Star's
clients have signalled their concerns about its level of debt in the face of a
possibly prolonged economic downturn. These concerns have been exacerbated by
the recent, but unrelated, temporary suspension of dealing in its International
Property Fund. The Board believes that the reporting requirements and public
scrutiny that are part of being a listed company have served to magnify these
concerns.

In addition, the steep fall in financial markets over recent months has
resulted in a significant decline in New Star's assets under management and
associated revenues. Assets under management were £13.9 billion at 30 November
2008. This will unavoidably reduce New Star's operating profits, and as a
consequence, restrict its ability to service its debt in future.

The Board has therefore concluded that New Star's current capital structure,
and in particular its level of debt, is no longer appropriate. The proposed new
capital structure is intended to eliminate any negative impact of New Star's
debt on its business, whilst retaining potential value for equity holders. This
will enable New Star to focus on restructuring the business, improving its
investment performance and maintaining its client service.

Under the terms of the Restructuring, New Star will put proposals to
shareholders to de-list. On completion of the Restructuring the Banks will
convert £240 million of the £260 million owed to them, together with certain
other amounts owed to them, into £94 million of convertible redeemable
preference shares (the "Preference Shares") and such number of new ordinary
shares as together will give the Banks 75% of New Star's fully diluted enlarged
ordinary share capital, calculated without taking into account the conversion
of the Preference Shares. An additional £6 million of Preference Shares will be
available for employee incentivisation.

The Preference Shares will entitle the holders to an annual dividend of 10 per
cent. above LIBOR which will start accruing 6 months following issue. This
dividend will not be payable until 30 June 2013. The Preference Shares,
together with the accrued dividend entitlement, must be redeemed on 30 June
2013 (or, if earlier, out of the net proceeds of any disposal) save that on 30
June 2013 New Star may elect to convert the outstanding Preference Shares into
ordinary shares representing, together with the ordinary shares held by the
Banks, 95% (or such lower percentage as may apply taking into account earlier
redemptions of Preference Shares) of the fully diluted enlarged share capital
of New Star following conversion (excluding any shares in issue pursuant to the
exercise of the warrants described below). Whilst the Preference Shares are in
issue, no dividends will be paid on the ordinary shares without all accrued
dividends on the Preference Shares having first been paid and without the
consent of the holders of the Preference Shares.

The balance of £20 million of the current gross debt will remain in place and
be repayable in June 2013. This compares with New Star's cash at 30 November of
£30 million.

In order to attract and retain key employees following the Restructuring, New
Star has agreed with the Banks a senior management incentive scheme comprising
warrants over a new class of ordinary shares representing 5% of the fully
diluted ordinary share capital. These warrants will vest over the next 2 years
subject to profit targets. In addition, minimal cost options over a total of £6
million of Preference Shares will be granted to certain employees.

The Restructuring is conditional, inter alia, on signature of documentation
satisfactory to New Star and the Banks, on the approval of New Star's
shareholders (including to the effect that on completion of the Restructuring
none of the Banks will be required to make a general offer for New Star under
Rule 9 of the Takeover Code) and on regulatory approval. New Star expects to
post the relevant documents to shareholders in the next few weeks and to
complete the Restructuring early in the New Year.

Further details of the Restructuring will be provided in due course.

Commenting today, John Duffield, chairman of New Star, said:

"The Board recognised the concerns of our clients regarding the level of our
debt during these difficult times. We have therefore taken this radical step to
address these concerns completely and with one stroke.

We are now free to focus all our attention on improving our investment
performance. Our existing share-based bonus scheme will be replaced by a new
scheme to ensure that our key people are locked in.

The cost of this restructuring is regrettably a substantial dilution for
ordinary shareholders, including me. However in current market conditions, we
have to recognise that there is no other option to ensure the stability of the
business."

Enquiries:

Citigate Dewe Rogerson

Anthony Carlisle (office) 020 7638 9571 (mobile) 07973 611888

Note for editors:

The banks in New Star's syndicate are HBOS, Lloyds, RBS, HSBC and National
Australia Bank.

[sprattyken] 03/12/2008 17:23

Worse than I thought. Whoops.

[riptracker] 03/12/2008 16:08

You will need more than rabbit to survive this one when talk of 1p is on paper it useually suggests a confirmation that will occur for New star./ Old Dinasaur...

[sprattyken] 03/12/2008 16:04

He's renowned for pulling rabbits out of hats.
This one could be one bunny too far.
I have 15000 at 7.92 so can only lose £1200 worse case scenario.
I don't think there's much point in people selling at these levels.

[riptracker] 03/12/2008 15:57

The national newspapers stipulate that new start as had its days and high debt will cause problems. no wonder mr duffield sold and obtained £150 million in payments. 1p sounds about right for new become drag star.

[riptracker] 03/12/2008 13:54

Says in Todays Guardian that New Star Asset MANAGEMENT IS TICKETED TO 1P.

[fray bentos pie] 03/12/2008 13:53

Still talking, I guess.