Origo Partners Share Discussion Threads

[charlie] 23/4/2018 13:01

As zcaprd7 says, the loan was made when Origo in a terrible place. The terms reflected that. Now things have improved a bit. The lender's gamble has worked. So why isn't he being paid his $3.75m?

Two possibilities:

(a) Per the original loan RNS, the terms allowed early repayment at Origo. There was no mention of early repayment at the lenders option. So if the lender wants early repayment, the terms would subject to negotiation. But the extreme of NIL return seems a surprising outcome of the negotiation.

(b) A more worrying possibility. The loan was unsecured. Maybe he is just glad to get his principal back! (This also seems surprising in light of apparent progress. But they did say that full NAV will not be realised).

[zcaprd7] 23/4/2018 11:08

For sure, it didn't look generous at the time, backs against the wall ... But it hasn't cost them anything now?Yes, protecting his investment, but the loan was worth more than his shares, no?

[rjmahan] 23/4/2018 10:55

He owns 1.65% ords - and debatable whether 12% PA or 1.5X ammount borrowed is generous....

[charlie] 23/4/2018 10:29

But why has he done that? He has no discloseable stake in either the equity or the prefs.

Paraphrasing Vito Corleone - What have we done to deserve this generosity?!

[zcaprd7] 23/4/2018 09:10

Good old lars...

[zcaprd7] 22/4/2018 01:24

At least they got some free holidays in China...

[russman] 21/4/2018 10:23

Voting on a retrospective agreement.Dont even give asset valuations / cash.OPP directors should abdicate.

[zcaprd7] 20/4/2018 23:05

Are we being set up for a low ball offer for the whole portfolio?

[russman] 20/4/2018 21:52

Brooks must be spitting feathers.

[zcaprd7] 20/4/2018 13:32

I'd prefer some sort of idea rough idea though, so it might drift.If it's a certain 4 cents rather than speculative 9 cents, I'm happy...

[rjmahan] 20/4/2018 13:15

Yes - though even if it is 50% you can still get a good return on prefs and ords.

[zcaprd7] 20/4/2018 08:35

There we go, another nav write down...

[zcaprd7] 28/3/2018 13:04

Piddly volumes are causing large drops here... Any news?

[zcaprd7] 27/3/2018 14:28

Yes, sorry, 9 cents nav, I guess currency has shifted against the last few weeks...

[russman] 27/3/2018 08:24

9c the accounts are USD.
The ords are in STG.

[zcaprd7] 26/3/2018 22:50

Yes, exactly, there should be about $100m to play with... But repatriation and liquidating the assets remains the problem.

[rjmahan] 26/3/2018 19:34

yes but not quite same as paying the prefs...

[zcaprd7] 26/3/2018 19:07

They have to pay the first $15m... Then its roughly shared after that. The current nav of 9p takes that into account though.

[rjmahan] 26/3/2018 16:03

Russman - thats the point they dont need to pay the prefs.

[rjmahan] 26/3/2018 16:02

guess so...

[zcaprd7] 26/3/2018 14:54

Rj - you were the kiss of death - lol

[zcaprd7] 26/3/2018 14:17

I guess that's why prefs are a three bagger and the ords a nine bagger?

[russman] 26/3/2018 09:18

Still got to pay the prefs.
Need some big realisations & get the cash out of "China".

[zcaprd7] 26/3/2018 08:55

Prefs / ords issue was the outcome of the legal dispute with Brooks, who tried to take out the whole company with their large holding of Prefs... The judge came up with the shared "approach".

[rjmahan] 24/3/2018 17:48

Quiet here but I think OPP might be about to turn...
hxxps://deepvalueinvestments.wordpress.com/2018/03/23/opp-p-origo-prefs-ordinaries/