Rurelec Share Discussion Threads

[kinbasket] 03/2/2014 10:52

Thanks. That's from note 25 in the accounts. So a minimum of 10%. But still no idea of who the funder was. Birdsong is a BVI registered subsidiary so not easy to find out.

[eezymunny] 03/2/2014 10:44

Isn't the most important thing here what's left and what's it worth? NAV is pretty meaningless (apart from cash) as a load of power generating plant in S America (hmmmm!). So we need to know what cash flow that plant might produce going forward.

I note loss-making in H1 and Argy peso collapsed since. Any reason to be optimistic here? Broker forecasts?

[sparty1] 03/2/2014 10:41

FROM lse..boards..
"
"Other loans comprise a loan of US$15.45 million, plus accrued interest, to Birdsong Overseas Limited, a wholly owned subsidiary of Rurelec PLC and, through intermediary holding companies, owner of the shares in Empresa Electrica Guaracachi S.A.. The loan was arranged in July 2012 in order to provide additional working capital for the Group's expansion in Chile and Peru and the costs of the Bolivian litigation. The
loan is repayable by 31 December, 2013 and is secured by a first charge on the proceeds from the Bolivian Arbitration claim and the assets of Birdsong Overseas Limited. Under the terms of the loan, the loan provider is entitled to a portion of the proceeds recovered in relation to the final settlement of, or award, in connection with the Bolivian arbitration. The portion of the proceeds payable to the loan provider is dependent upon a number of variables, including the length of time to recover such proceeds and the quantum of the proceeds. The minimum amount payable is 10 per cent. of the proceeds recovered and based on the carrying value of the claim (see note 19), the portion of the proceeds which the lender will be entitled to receive amounts to £5.1 million and accordingly a sum of £1.86 million has been accrued at 31 December 2012, representing amortisation of the sum of £5.1 million over the expected life of the loan. Interest on the loan is payable at 12 per cent. per
annum."

[fatnacker] 03/2/2014 10:09

Sounds like a CFA.

[kinbasket] 03/2/2014 10:06

Giant steps asked about Birdsong and the litigation funding.

Birdsong is the Rurelec subsidiary through which the funding was made. The actual funder is unknown AFAIAA. As are the details of the deal..

Rurelec has granted a contingent value right to the Funder, pursuant to which it will be entitled to receive a portion of any proceeds recovered in relation to any final settlement of, or award, in connection with the Arbitration.

It's not unusual for this to be significant. Followers of Burford or Juridica will be aware of the fees charged. It's usually something like the first X plus a % of the rest.

[giant steps] 03/2/2014 10:04

If the company could only put the 199 page PDF on the website
we would be able to answer the question ourselves.

I'm not happy being left in the dark.

[mrwhits1] 03/2/2014 10:02

or we will have to wait for the next set of results and work it out, due approx first week June.

Regards

[fatnacker] 03/2/2014 09:55

Its a fair question from someone with a reasonable line of communication with the company?

[ryan83] 03/2/2014 09:53

I also think that a bit of clarity is needed too. Does this include costs?

[giant steps] 03/2/2014 09:51

I'm still a tad confused :

"
The Tribunal concluded that the expropriation was unlawful and calculated aggregate compensation in the amount of US$35,539,598 (approximately £21.6m) as of 31 January 2014, now increasing by daily compounded interest at the rate of 5.6331% a year until the date of payment. The award is higher than the £20.582 million which Rurelec paid to acquire its controlling stake in Guaracachi in 2006.
"


Is the award higher than what was originally paid if aggregate compensation includes costs ?


Perhaps the company would like to clarify.

[fatnacker] 03/2/2014 09:51

I think the costs application will follow.

[sparty1] 03/2/2014 09:47

but better than nothing... :)

[ryan83] 03/2/2014 09:35

GS - exactly.

Compo is $35.5m / £21.6mn

It cost £20.6m in the first place
It cost $15.5m to get it = £9.4m

Total cost = £30m
Compo = £21.6m

Net loss overall.

[giant steps] 03/2/2014 09:24

We really need to have sight of the 199 page PDF

$41m = $35.5m + $5.5m (divis)

I assume the "Aggregate" $35.5m = Award + Costs

We know birdsong provided up to $15.45m for litigation

What is the compensation "Award" ?

[ryan83] 03/2/2014 09:16

so restated NAV using June 13 as a basis is a tad over 13p.

[ryan83] 03/2/2014 09:15

well NAV at June 13 was 17p with settlement booked at £47m.

Actual is £24.9m

my quick calcs


As at June 13
pence per share shares in issue £ Value Notes
0.170 560,000,000.00 95,200,000.00 Total
0.084 560,000,000.00 47,000,000.00 Bolivia
0.086 560,000,000.00 48,200,000.00 Rest of Company

Following settlement
pence per share shares in issue £ Value Notes
0.044 560,000,000.00 24,900,000.00 Total
0.086 560,000,000.00 48,200,000.00 Bolivia
0.131 560,000,000.00 73,100,000.00 Rest of Company

[mrwhits1] 03/2/2014 09:06

surely it been hammered because it had already "put aside" £47M in its accounts, and has only been awarded £21M, hence share price drop.

I guess the "re-rating" everyone wants might come when it does its additional listing, and starts to produce cash again!

Regards

mrwhits.

[ryan83] 03/2/2014 09:06

fatnacker - thats what I was thinking of.

[fatnacker] 03/2/2014 09:04

More importantly, will there be a costs order?

[megordon] 03/2/2014 09:04

Should see a good rise nopw that most of the traders have been mugged and cleaned out, usual MM games, lol.

[ryan83] 03/2/2014 08:58

well the ship is steadying now. GS - I wonder how much the legal costs have amounted to over the last four years!

[giant steps] 03/2/2014 08:48

Does anyone know how much Birdsong are getting from the award ?


(recall $15.45 million loan)

[pilkersa] 03/2/2014 08:45

Well I have just bought in. Seems a bargain at this price.

[luminoso] 03/2/2014 08:39

Was thinking that too. Would expect so.

[bones30] 03/2/2014 08:38

I wonder will the directors buy more