Renewi Share Discussion Threads

[george stobbart] 19/8/2019 12:02

Seems like the Japanese Banks (lenders of the Derby Sinfin project) have started to recover their loans from credit insurers. Let's hope that Renewi recovers its £41mn original investment in Sinfin that is marked down to £0 currently (+in addition to the two-year renewal signed for the plant last month).


Japanese Bank Scores Win In £29M Bond Payout Suit
Law360, London (August 15, 2019, 6:05 PM BST) -- Trade credit insurer Euler Hermes lost its bid Thursday to convince a London court to invalidate Japanese lender Sumitomo Mitsui's demands for more than £29 million ($35.1 million) under a project finance deal.

Judge Christopher Butcher ruled that demands from Sumitomo Mitsui Banking Corporation Europe Ltd. that Euler Hermes pay £21.81 million due under a “performance bond” and a further £7.27 million due under a so-called retention bond were valid as the lender had called in the debt on behalf of Resource Recovery Solutions Ltd., or RRS, which had entered into the bonds with the insurer in 2014.

Judge Butcher agreed with Euler Hermes that Sumitomo Mitsui had not, as argued, been assigned the rights under one of the bonds. But he concluded that on a technicality that the notices had essentially been made by RRS and signed by the bank on its behalf. The lender had been appointed RRS’s power of attorney under a debenture agreement on Aug. 20, 2014, the court heard.

The bonds were issued as part of a public-private partnership deal to finance a waste treatment facility in the Midlands city of Derby, England. The dispute came to a head after outsourcing company Interserve PLC, which was responsible for the design, construction and completion of the facility, entered administration in March 2019.

The local Derby City Council and Derbyshire County Council announced the termination of their management contract with RRS on Aug. 2, after the banks that helped finance the project determined there was no liquidity in the market to replace the value of the original deal, the court heard Thursday.

The bank brought the Part 8 proceedings against Euler Hermes on Aug. 8, asking the court to order the insurer to pay the outstanding money. The case was expedited at a hearing last week. RRS was not part of the court action.

[dplewis1] 14/8/2019 11:56

Ok so US 2's 10's have inverted and the world is about to implode. A nice defensive stock with a decent divi is the place to be parking some cash now right?!

[salpara111] 12/8/2019 12:38

I have had this on my watch list for ages but with net debt at over 2.5X EBIT I am not willing to take a stake yet.
For me the buy signal will be when they are able to sell their treated soil again as that will lead to a dramatic improvement in cash flow ,it just seems to be taking for ever to get that issue resolved but I guess when legal gets involved timescales seem to change from months to years!

[robsy2] 08/8/2019 09:20

So the large seller has gone. Good news. Strange that they should unload at this level. They may be in at the wrong price, we all are to a greater or lesser extent but it is not the the to throw the towel in. This will be nearer a 100 than zero within 3- 5 years imho, so why not stick around?
R2

[dplewis1] 08/8/2019 09:14

Bit slow issuing it but good to have confirmation they're out

[techno20] 08/8/2019 09:12

Runs out - The question is who’s bought them!? Think this could get interesting.

[george stobbart] 08/8/2019 09:11

With the removed overhang of i) Kabouter fully exiting and ii) Darby Sinfin contract renewing for two years, there are now two potential catalysts ahead:

iii) Sale of Reym. Renewi's recent retail bond prospectus says "On 8 November 2018 the Group announced its intention to sell its Reym industrial cleaning business, which sale is expected to occur before the end of September 2019;"

iv) ATM Soil Issue. AGM trading statement says "In our Hazardous Waste Division, tests of our soil inventories have progressed well. In our view, the results so far are good and we await confirmation from the regulators, with whom the dialogue remains constructive."

Let's hope the worst are behind us, but you never know!

[gregsc] 08/8/2019 09:09

warranty- I hope you are right. I bought a fair chunk at the beginning of April at 23,
so if RWI gets to 47 I would be really happy.

[warranty] 07/8/2019 17:12

I’m on 47p average and I actually think it could return there quite quickly so I’m not too fussed it’s taking its time. I think (hope) all the bad news is behind us now and it should be up all the way if the good news pending appears. I certainly don’t want to be out when it does and I also expect the dividend to rise again.

[dplewis1] 07/8/2019 10:28

Same..my average in the mid 40's somewhere. Oh for the days when it used to yoyo between 70p and a quid!

[wad collector] 07/8/2019 09:56

Still looks a very long way back up to my average buying price . Years probably, if it isn't taken over in the meantime.

[dplewis1] 06/8/2019 21:38

Market picked it up - it was up 13% the day the large trade printed (73 million shares). Speaking of large trades there were some decent buys today including a 500k late print. It's been a rare positive this week as my other holdings have been hammered.

[sphere25] 06/8/2019 17:46

Been watching this for a short term trade only. Chart looks like it might want to break higher with the overhang gone.

Just seen the news. Market not picked this up yet?

[dplewis1] 06/8/2019 14:51

Whoo back to 30p!

[robsy2] 05/8/2019 18:53

Good spot george. Rwi is looking like a safe haven nowadays.

[george stobbart] 05/8/2019 17:33

Looks like the Derby Sinfin contract got cancelled last weekend. Renewi signed a new two-year contract to remain the operator while Interserve got completely kicked out.

I guess 2yrs of cash flows worth more than zero and RWI will have to write back a part of their investment in the plant (which was impaired to £0 last reporting period 31.3.19)

hxxps://www.letsrecycle.com/news/latest-news/end-of-the-line-for-rrs-derbyshire-contract/

[dplewis1] 05/8/2019 11:48

But what is this...a defensive share like RWI actually behaving as it's meant to on a down day for the markets?!

[dplewis1] 05/8/2019 11:47

I'd ignore those sites if I were you, complete garbage.

[theolonghair] 02/8/2019 11:41

Does anyone know why walletinvestor analyzes a near 0.20 per share average in 2022 while Simply wallstreet is contradictory to this?

Or shouldn't these forecasts be taking so serious?

hxxps://walletinvestor.com/lse-stock-forecast/rwi-stock-prediction/data/3

[taximania] 02/8/2019 11:06

Maybe it was a buy ))

[george stobbart] 02/8/2019 07:02

Still in this case Kabouter, should have filed a TR1 for crossing the 3% mark

[outsizeclothes.com] 01/8/2019 23:08

If there's no "holdings in Co" statements, Karbouter must have got shot to 2 or more buyers.
Which is possible, as other would-be buyers will know they've been a seller, and could have approached them directly.

[dplewis1] 30/7/2019 13:38

No TR-1 yet?

[george stobbart] 26/7/2019 17:38

Surely the fall was partly because of Kabouter though.

Since the results on 23 May, Kabouter has sold 63,734,846 shs in large parcels.

Price 23 May: 36.7p
Price 25 July: 25.6p

Kabouter was even selling on positive news (sale of Canadian biz and refinancing of bond with cheaper debt)

[dplewis1] 26/7/2019 17:26

I don't see why not. We had the prospect of them dripping 30 million shares into the market and now they're out in a day. We've also potentially got a new insti on board.