Silverdell Share Discussion Threads

[yupawiese2010] 05/8/2013 19:15

PJ1.

I will re phrase it differently, just for you - bleaker than ever !!!

P...K..

[pj 1] 05/8/2013 19:08

yupawiese2010 5 Aug'13 - 18:52 - 1859 of 1859

What on ever makes you think that. I mean, Shares suspended and being run under Administrators.....cannot think of one other Company in a similar position where the future looks rosy...can you?

A...H..

[yupawiese2010] 05/8/2013 18:52

If the posters on iii bulletin board (5th Aug) are correct , then the future for shareholders going forward, looks very bleak.

[bookbroker] 05/8/2013 11:06

Haven't a clue, but one would assume they are currently engaging in creating some sort of new business plan with a view to re-financing and a re-list, takes time but hopefully shareholders will benefit albeit with dilution of holdings, the best we can expect at the current time!

[zoolook] 05/8/2013 08:35

What are the rules on how long the shares can be suspended and timing between updates?

Ta

[rivaldo] 01/8/2013 12:01

Jaknife, completely agreed. I'm tempted to believe it's down to the FD, and he really has no excuse if so and would have to go. It's always interesting to see how some are so quickly ready to trash everyone and everything before they've even got half of the complete picture - which SID should provide pronto via RNS once re-listing and financing are sorted out.

[hippo] 01/8/2013 11:20

personally can't ever see it recovering, like to be proved wrong, as I had an investment here.

No question, the board should be sacked, they collectively have shown they cannot run the Company for shareholders. IMHO we are likely to have lost all or a very large percentage of our investment, who else is responsible ?

[salpara111] 01/8/2013 10:05

What they pay for Kitsons is irrelevant....what is relevant is that the management are totally incompetent and allowed their major trading subsidiary to fall into receivership.
I am really surprised that there have not been any RNS about "directorate change" the CEO and the FD at a minimum must go in order to re establish credibility.

[adamb1978] 31/7/2013 11:00

mikeja - fair point though the 'debt' from our understanding is minimal and in essence there is no value leakage from teh company anyway as whatever the administrators pay off reduces the liabilities of the Group anyway....so its still very circular!

[mikeja] 31/7/2013 10:35

SID does not receive the money it pays for Kitsons,it goes to the administrators to pay off Kitson debt.

[hvs] 30/7/2013 19:30

Is it not BANKRUPT ?

Period.

[snowydays] 30/7/2013 17:52

Yes, what does it matter how much they pay or how long it is deferred.

Surely SID receives whatever money it pays itself for Kitsons?

[hippo] 26/7/2013 15:41

I was not suggesting the dilution was 100%, just that it is 100% likely to occur.

[yupawiese2010] 26/7/2013 08:44

How long is the " deferred consideration for ", until they raise the money via a placing / rights issue. ?

[rat attack] 25/7/2013 22:55

As I understand it is deferred consideration. In otherwords payable at a future date with little or no upfront payment.

[pj 1] 25/7/2013 21:52

AdamB1978 25 Jul'13 - 21:41 - 1841 of 1841

''There's also the risk that there were genuine financing problems''

Then where the Hell have they just got the cash to ''buy'' a bankrupt Company..???

Your statement does not make any sense

[adamb1978] 25/7/2013 21:41

extrap - i'd expect them to issue shares as their credit profile and rating will be shot to pieces after this fiasco and no-one will lend to them. There's also the risk that there were genuine financing problems and the one creditor which forced the company into administration was the tip of the iceberg.

If they dont need to raise equity then great, however I would say its low probability that that is the outcome

[hvs] 25/7/2013 18:30

HSBC will want their money back.

Do you know how much that is ?

[extrap] 25/7/2013 15:35

Why will they need to issue any new shares at all - the last RNS said:

'The consideration for the acquisition is payable in cash on a deferred basis and is capped at GBP8 million (subject to downward adjustment (if applicable) following the completion of a valuation of the Kitsons Business by an independent valuer). The deferred consideration is intended to be satisfied from the Group's banking facilities at that time.'

The shares were already heavily discounted before the suspension - the idea that they could be further discounted to 4-5p seems highly unlikely, to say the least.

[adamb1978] 25/7/2013 14:36

Hippo - I dont see 100% dilution from here. From memory there's over 300m shares in issue so if they did a 1 for 1 placing or rights issue then, even assuming a heavil discounted price of 4p - 5p which I mentioned a couple weeks ago, they would be raising in excess of £12m - £15m which would more than wipe out their debt.

My guess would be about half that amount ie issuing about 150m odd shares. That would delever the balance sheet to something like 1x net debt/EBITDA which is quite low, even for a company who's credit rating will be shot