Petrofac Share Discussion Threads

[rossifumi] 13/6/2024 16:18

That's just cruel....

[action] 13/6/2024 15:50

500k @17.59p

[farrugia] 13/6/2024 15:45

its a short squeeze. try shorting it. Interactive Brokers will tell you insufficient shares to lend.

[rossifumi] 13/6/2024 15:26

Shorts panicking that it not going under ?

[mirabeau] 13/6/2024 15:11

Price spiked. News? RNS logged?

[wshak] 13/6/2024 11:59

Sold the bonds I initially bought at 21c and the ones bought at 19.75c for a price of 24.55c. The odds of bondholders walking away have increased substantially after the annual results. Language used was dire, likelihood of insolvency process rather than restructuring must be 50:50 now.

[action] 13/6/2024 11:50

The only thing is management buys time from bond holder and comes out with better results in 6 months time to revive share price

[farrugia] 13/6/2024 10:45

i sold the bonds yesterday at 27.5 basically no loss.

this is too high risk even for me just to hold the bonds (not the shares!)

the only reason the shares are being supported is that the borrowing fee is too high and there are insufficient shares to borrow.

the shares don't have value. the bonds have little value UNLESS THE BONDHOLDERS ARE WILLING TO INJECT HUNDREDS OF MILLIONS.

[action] 12/6/2024 16:08

Pump it And dump it came true. 8t was suckers rally. NO BID ONLY D4E.

[owan] 12/6/2024 15:43

I assume we need to hear from board today or tomorrow or it’s over? In relation to that contract pulling out

[sr2day] 12/6/2024 15:16

the statement from the BOD was not encouraging.would not trust their intention.Better wait until the 14/6

[seagreen] 12/6/2024 11:22

Jak

Calm down I said no position.

You are getting awfully twitchy

[jaknife] 12/6/2024 11:06

seagreen,

"Or takeover
(No position before you start)"

FFS, if you read that first paragraph

"The Financial Restructure discussed below is currently the only option to secure the future operations of the Group and active discussions are ongoing. The realistic alternative to the Financial Restructure is insolvency." [my bold]

And still think that a takeover offer for the shares is a likely option then you're living on planet La La.

JakNife

[topazfrenzy] 12/6/2024 10:43

I hope you all got out of this rubbish on that pump lol

[seagreen] 12/6/2024 10:43

Or takeover
(No position before you start)

[jaknife] 12/6/2024 10:24

Rossifumi,

"Truth is nobody knows what the outcome will be, im sure something will be put in place to sort this out"

The company have explicitly stated:

* "The Financial Restructure discussed below is currently the only option to secure the future operations of the Group and active discussions are ongoing. The realistic alternative to the Financial Restructure is insolvency."

* "By virtue of not having paid the interest coupon under the terms of its senior secured notes of US$29 million on its due date of 15 May 2024, the Company is in default. The grace period for this payment expires on 14 June 2024, after which time, if not remedied, a sufficiently large group of noteholders, being above 25%, could initiate enforcement action."

* "To date, the Company has agreed deferrals of its contractual amortisation payments on its bank debt facilities, in part since October 2023, and more recently from April 2024, which now amount to US$84 million currently due on 31 May 2024. It is expected to continue to rely on further deferral of these obligations by its lenders, which to date, have been providing these for no longer than on a rolling weekly basis."

* "Even without making payments to its noteholders and lenders, the Group forecasts to have minimal headroom above its US$75 million minimum liquidity covenant until the Financial Restructure is implemented. To maintain this liquidity, the Group is having to manage its payment obligations carefully, including by seeking to delay all but critical payments to creditors and by not funding obligations under operational joint venture arrangements."

* Furthermore, the Group has not been able to meet its contractual obligations to provide performance guarantees in support of certain of the EPC contracts awarded in 2023, and consequently there is a risk that one or more of these contracts could be terminated. In particular, the Group has received a notice of default from a key customer requiring a performance guarantee to be posted by 16 June 2024."

From accounts:

They couldn't be clearer really, the possible outcomes are:

A. Debt for Equity swap, or

B. Insolvency

Historically D4E swaps have left around about £20m of value on the table for shareholders. That would equate to about 4p a share.

Everyone knows this but a hard core of retail investors still refuse to accept the truth.

JakNife

[geckotheglorious] 12/6/2024 10:07

Rossi
"Truth is nobody knows what the outcome will be"

Disagree:

Company will emerge post refinancing/restructuring of balance sheet in a better place.

Dilutive Debt for Equity is guaranteed.

Only issue is the price and extent of dilution.

[rossifumi] 12/6/2024 09:58

Truth is nobody knows what the outcome will be, im sure something will be put in place to sort this out

[wellbutpoor] 12/6/2024 08:48

wallywoo

To allow transfer of ownership through accumulation at rock bottom prices, under the fear of administration.

Biggest con trick ever

[wallywoo] 12/6/2024 08:29

Very confused why pfc didn't keep this suspended. If the refinancing was not sorted (which it wasn't), what is the point of this massive volatility. Other than to fuel day trader's interest. Seems a very strange decision. Anyway more of the same up / down craziness to watch. Only for true gamblers, not investors though!!!

[halfpenny] 12/6/2024 07:36

Berenberg also placed Petrofac under review. The concern it voiced related to a potential need to renegotiate financing arrangements in a scenario which could see shareholders significantly diluted.

[halfpenny] 11/6/2024 20:04

Just be careful you can lose your hard earned money.

This is a gamble so do you feel lucky??

Do the lottery!!

[rossifumi] 11/6/2024 16:37

Where's uncrossing trade?