Raven Prop P Discussion Threads

[keith95] 30/3/2022 10:52

"2 years worth of dividends sitting in cash." Wanna buy some roubles?

[dandigirl] 30/3/2022 10:26

Not a surprise for most.

[igbertsponk] 30/3/2022 09:40

That's how you do business in Moscow so YES!

[zangdook] 30/3/2022 09:35

hookers and coke until it runs out.

[igbertsponk] 30/3/2022 09:28

Confirmation that divi will be rolled up instead of being paid now. Not a surprise. Any cash they have accessible they'll be using to pay fees and the Board etc to try and get a resolution that makes some pennies for the Pref holders.
Someone on the other board expected them to use the cash to pay the divis I see.... naive.

[my retirement fund] 30/3/2022 09:25

Well so much for Kenny's theory they have 2 years worth of dividends sitting in cash.

[spectoacc] 30/3/2022 07:16

Nothing that wasn't known (and likely from before going XD):

"In light of the continuing uncertainty and in order to conserve liquidity, the Board has therefore resolved that payment of the preference share dividend for the period from 31 December 2021 up to, but excluding, 31 March 2022 will not be made and this will accumulate in accordance with the terms of the instrument."

[keith95] 29/3/2022 13:47

"the new prefs were a way of selling the company to the Russian subsidiary with the capital being repaid over 10 years."

Indeed .. so are the existing Preference Holders wiped out?

[waterfall city] 29/3/2022 13:26

My take on it was the new prefs were a way of selling the company to the Russian subsidiary with the capital being repaid over 10 years.

[keith95] 29/3/2022 12:54

"I’d do the same" - yup.

[keith95] 29/3/2022 12:09

My reading is that the put option wipes out RAV shareholders, but to agree to the put option RAV shareholders will want some compensation at a nominal consideration.

Thereafter:


"Following the exercise of the put option RPG will hold the loan and preference share assets above along with any cash balances. Its principal commitment will be its own preference shares."

It's not clear to me what is meant exactly by "preference shares". The following:

"the Company would retain an economic interest in RRHCL via existing unsecured loans of £41 million and Rub1.1 billion to RHHCL and non voting preference shares of £678 million, attracting a coupon of 8%, 15% and 10% per annum respectively and with a term of ten years until maturity. "

Suggests to me that the debt held by RAV will be converted into preference shares to be paid by Prestino Investments Ltd, but if so, RAVP holders would seem to be excluded, so does this imply that RAVP holders are wiped out?

Moreover, would it be feasible for the directors to let RAV collapse? If so, directors would get the assets of RAV virtually debt free, because there would be no incentive to keep the shell company RAV afloat and every incentive to let RAV collapse.

In short, this restructuring looks like a power grab for assets for free to me.

[gfrae] 29/3/2022 09:46

The joint venture between the company and various directors...Though the debt was provided by the company, are the directors liable for their part or is the company taking any or all losses if the bank cannot be repaid ? Kenny ?
The directors may have to put up some more collateral and could be in some financial difficulty if they are liable for losses.

[stemis] 28/3/2022 21:26

Waterall City

"Other than our St Petersburg office portfolio, each of the secured
facilities sits in a special purpose vehicle (“SPV”) structure to minimise
recourse to the overall portfolio."

[muzerewa] 28/3/2022 20:00

Meantime rouble has been creeping back up, USD-RUB down to 96. The requirement for rouble denominated gas payments seems to have supported the recovery. Good news from the selfish perspective of RAVP holder?

[waterfall city] 28/3/2022 17:38

I'm wondering where the debt and £50 million cash would sit, with RPG or the Russian subsidiary.

[my retirement fund] 28/3/2022 14:20

Stemis, your assuming transparency! What do you think shareholders are going to do, camp outside a PO Box forwarding address in Guernsey and demand to know what's going on ? This has gone black box now. As such, by default will be a feeding frenzy for the connected parties only.

[cc2014] 28/3/2022 14:15

The debt and bondholders will get paid before the pref holders.

From memory there's about £600m of debt and £250m of pref shares.

[stemis] 28/3/2022 13:42

Article is looking through the lens of ordinary, rather than preference, shareholders and I'd be very surprised if there's anything left for them. Reasonable chance of something for preference shareholders, but how much is impossible to say...

[the monkster] 28/3/2022 13:38

total w/o then

[spectoacc] 28/3/2022 13:15

Yes - won't post it publicly, will message. But a few snippets:

"This doesn’t mean those stakes are entirely worthless. Though shareholders can no longer trade the stock, they will remain on the shareholder register of Raven Property the private company. As such, they will retain voting rights and will be asked to approve the de-listing plan in the coming weeks."

"Once that happens, one of two scenarios will play out. If, by some miracle, peace breaks out in Ukraine and sanctions are rolled back, Raven may choose to keep hold of its assets and play for time. But given the chances that recent events will be reversed, and the fact that it is already “impracticable for the business to continue in its current form”, the only realistic course of events is that Raven divests its business."

"To put it bluntly, the prospects don’t look great. For a start, the shares are now untradeable and risk dilution or being wiped out if cash runs dry. If any value is to be recovered, investors must hope the company’s assets aren’t seized, capital markets and geopolitical normalcy is restored, the rouble maintains a semblance of long-term exchange value and rental income continues to be paid amid Russia’s potential economic collapse.

On top of that, the divestment will need to satisfy sanctioning authorities, and Russian management will need to act as good faith counterparties, despite being cut off from the Raven Property group.

“I can’t think of a more uncertain outlook for a company,” said one person familiar with the board’s thinking."

[stemis] 28/3/2022 12:59

Anyone got access to the article in Investors Chronicle - Raven shareholders down but not (completely) out?

[stemis] 28/3/2022 12:29

I think the next thing we will see from them is the circular regarding the delisting

[zangdook] 19/3/2022 10:34

I wonder what will happen to the joint venture between the company and the directors which saw them offload their now near-worthless stock and the company put in a lot of good cash. Wasn't the stock used to secure a loan from VTB bank? If they call in the loan will that be the end of the JV?