Orchid Developments Share Discussion Threads

[joeblogg2] 14/12/2012 17:06

This is a little strange as I expected something by now ?? Not sure what the hold up is and I'll be dammed if they want me to say nothing now especially as we are suspended and the market closed but resolution 1 was voted down and 2 was not needed as it dependant on 1.

[jack1236] 14/12/2012 16:58

Anytime up to 6.30pm possibly monday.

[smithd13] 14/12/2012 16:46

No RNS at all? Nice :(

[golikethewind] 14/12/2012 15:49

has anyone done any research into bellport affairs, accounts etc

[jack1236] 14/12/2012 15:17

This is what they said on the 12/11:-

Short term loan

In order to fund the day to day operations of the Company until the anticipated completion of the Open Offer, the Company has entered into a secured bridge loan with Bellport Corporation, a vehicle owned and controlled by Guy Meyohas and Ofer Miretzky, for a term of up to 60 days (the "Facility"). The Facility is for a principal amount of EUR 207,000, EUR 110,000 of which is being drawn down by the Group immediately and the remaining EUR 97,000 will be available to be drawn down at the election of the Group subject to the Resolutions not having been voted down by shareholders at the time the drawdown notice is given by the Group.

The Company is obliged to repay all amounts borrowed by it under the Facility and accrued interest thereon by 7 January 2013 or within five business days of admission of any shares issued under the Open Offer or within two business days following a sale of any assets the net proceeds of which are sufficient to repay all amounts borrowed under the Facility. The Group will also be required to pre-pay part of the loan out of the net proceeds of sale of any asset. Amounts drawn down under the Facility will accrue interest at the rate of five per cent. per annum. Where repayment is overdue, interest on the outstanding amount shall accrue at an additional rate of 1 per cent. per month for each day which such amount remains outstanding.

As security for all amounts drawn down under the Facility (including any accrued interest), a first ranking mortgage will be established in favour of Bellport Corporation over Regulated Land Plot XIV - 1190, situated in the city of Sofia, Region Studentski, quarter 7, area Vitosha VEZ Simeonovo, which comprises the land designated by the Company for the future development of phase 2 of Orchid Hills Sofia. The Company is not currently in negotiations over this plot of land with any potential buyer.

The entry into of the Facility by the Group constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. With the exception of Guy Meyohas and Ofer Miretzky who are, through their control of Bellport Corporation, involved in the transaction as related parties, the directors of the Group consider, having consulted with Shore Capital, the Group's nominated adviser, that the terms of the short term loan are fair and reasonable insofar as the Group's shareholders are concerned.

[simonparker5] 14/12/2012 15:16

Loverat I have to agree that you are spot on. This was a public meeting so Joe is well within his rights to spill the beans. It can't effect the price of a share that is suspended.

[loverat] 14/12/2012 15:13

Did someone here go to the meeting? If so, I do not see the problem in explaining what they said. The meeting was public and the stock is suspended so the share price cannot go anywhere.

[bumpkinroll] 14/12/2012 15:06

the seriousness of a winding up order as stated, depends on the debt amount being claimed but, if they have mentioned this in the EGM I would guess that it is serious.

tick tock, we'll soon find out..........

[simonparker5] 14/12/2012 14:59

The way I see it is that if Bellport were taken down then their receivers would take OCH down for the money owed to them. In this scenario no II is goung to want to get involved hence the apparant no vote.

[knigel] 14/12/2012 14:59

Hopr its not a ruse to get a no vote to get assets on the cheap?

[beginner3] 14/12/2012 14:56

Nigel- Thats what I am puzzled about, it was for Bellport, not for OCH, I do understand it affects OCH as they hold shares, but its not the end, its just difficult to get around!!

[jack1236] 14/12/2012 14:56

Bump

That's exactly why.

[knigel] 14/12/2012 14:53

But rumour is bellport had winding up order?

[bumpkinroll] 14/12/2012 14:50

markt - should be the case but I doubt it will happen. they'll get massively undervalued & sold to bellport for peanuts imo.

[tax dodge] 14/12/2012 14:46

Mark

Keep your bit of land?

What are you after? A bag of stones or a turf to put in your garden.

Get real.

[jack1236] 14/12/2012 14:46

This might be the time to get the shareholders together.

[markt] 14/12/2012 14:43

BTW Bump
imo in a cash distribution.....

a holder of 500k shares would get if offer does not happen

500k/94M X 17M (just for hotel and land , if accounts are correct, which they are not !)

= 90.4k euros


or
(if do not take up new shares)

this REDUCES to

34 k EUros
----

So, going into administration now before any new shares would give you 2.6 times as much, if you did not subscribe.

So, if this super basic calculation has some basis of truth to it, then you should be happy , not sad, if OCH has indeed gone into administration.

(a more detailed calculation would need to subtract from the 17ME the money for the dirs, approx 1.8-2ME if remove them now, 2012 salary, 12 months notice and 0.6ME remaining from 2009 bonus, and perhaps 200kE loan. So 17ME would reduce to maybe 15ME, small % change in the overal example which is to show a large ratio difference).

(as I have said various times, the land is probably best distributed to shareholders as shares in the land company, and unlisted...and then wait 5-10 years till next building cycle....no point to sell land at a bad time when it is very cheap)

I am happy if OCH has gone into administration.
(in part since I dont trust the dirs. nor the share offer......and dirs. record so far has been a disaster. raised money at 85p, 139p, then 40p and now wanted to do it at 2.25p. Raised 50M pounds and cap. value at suspension was 2M. = disaster under current directors. Ditch 'em imo !

[markt] 14/12/2012 14:37

BTW
I am happy if it will go into administration

(it already was imo....just that the administrators were the dirs....)

for me....my interests stand a much better chance imo if the administrator is an independant UK professional.

(and I think I will get some money back in time, after sell hotel, may be spring time...land I would prefer to keep my part, unlisted)

[markt] 14/12/2012 14:31

Administration
there is another thing called CVS
creditors voluntary scheme I think

I dont know about that
(but I think it is a more flexible arrangement....before administration....)
you can see it at various listed companies that are not suspended

[markt] 14/12/2012 14:29

Bump
"SP - we have NAV so surely if disposed of in a fire sale the funds after costs will be distributed to shareholders? But, no doubt this will be manipulated & the BoD will make an offer for them to the Administrator on the cheap."

imo administration would mean an administrator

independant

appointed to safeguard the assets of the creditors and shareholders, creditors (banks etc) come ahead of shareholders....


---

I re-affirm my opinion that the GM is worth way less than the bank debt, imo...and hence is worthless to shareholders.
Orchid Gdns , worthless to shareholders unless can quickly sell large chunks of it ...and get more than the debt (20ME)

approx. 17ME in the hotel and land, if accounts are correct.
about 36KE for me if true, but there would be deductions from any assets disposed off above debt....to pay any contractors etc or staff waiting to get paid.

I reckon I stand a fair chance of getting my money back or fair part of it, and a chance of higher than my investment, we dont know.

sadly we could have to pay 12 months notice to the 2 dirs....unless sacked for gross misconduct.
----

Administrator MUST sell to get max. benefit for creditors etc.....so they cant sell to the dirs. if there are other higher offers. (whereas the dirs. could if they did the administration !)

[daytraders] 14/12/2012 14:23

lol, he made himself look very stupid.

[smithd13] 14/12/2012 14:06

Heh daytraders... he was on III this morning at 7:24am singing the praises of 4p a share lol :-)