SLF Realisation Share Discussion Threads

[ctrader3] 19/4/2021 16:25

the glorious uncertainty of share trading.

[ctrader3] 19/4/2021 15:25

23/03/2021 09:19:28 ▼




(Alliance News) - JLEN Environmental Assets Group Ltd on Tuesday announced it has acquired Rainworth Energy Ltd for GBP5.8 million from an unnamed consortium of sellers.

Rainworth Energy holds the rights and operational assets that make up the Rainworth anaerobic digestion plant, which is a 2.2 megawatts electrical plant based in Nottinghamshire, England.

The Guernsey-based investment company focused on environmental infrastructure projects said the Rainworth plant, which has been operational since 2016, supplies heat and power to Center Parc's Sherwood Forest resort.

JLEN said the purchase increases its total capacity of renewable energy assets in its UK agricultural anaerobic digestion portfolio to 310.7 megawatts. It funded the acquisition from a drawdown from its revolving credit facility.

"We are pleased with JLEN's latest investment into the AD sector, bringing the total number of agricultural AD plants in the portfolio to nine. We look forward to supplying Center Parcs with a combination of renewable heat and electricity and providing organic fertiliser to the local farming community," said Chair Richard Morse.

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very limited for the facility to be expanded.

[ctrader3] 19/4/2021 15:22

Date/Time: 04/02/2021 09:44:09 ▼


Alliance News) - JLEN Environmental Assets Group Ltd on Thursday announced it has acquired Codford Biogas Ltd, an food waste anaerobic digestion plant that produces electricity in Wiltshire, England, for GBP19.8 million.

The Guernsey-based investment company focused on environmental infrastructure projects said the acquisition is structured as an initial upfront payment, with a smaller additional amount in deferred consideration for expansion opportunities payable after the acquisition completion. The exact amount will be determined through a valuation exercise undertaken following completion, it added.

JLEN said this is its second acquisition into food waste fuelled anaerobic digestion, further diversifying its portfolio in the waste and wastewater sector and increasing the total capacity of renewable energy assets in the JLEN investment portfolio to 308.5 megawatts.

The company said it acquired Codford Biogas from unnamed private individuals, who will continue to support the business going forward.

"The plant plays an important role in converting waste that would otherwise go to landfill into green electricity to power homes. Specific to the investment, we also value the opportunity to continue to work with some of the founding shareholders in the future years," said Chair Richard Morse

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not all assets are sold at mates rates.

[ctrader3] 19/4/2021 15:07

Borrower 13 - AD Plant - England



Stage 3 Credit Exposure £8.64m ECL £5.60m NCV £3.05m



This plant is performing well and has been subject to a sale process for most of the year. Due diligence by a prospective buyer is expected to conclude by the year-end which should result in our exit from this investment. We hold 50% of the facility shared with another institutional investor.


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there were ongoing detailed discussions about the sale so the sale price
was probably agreed, thus it was sold close to the published figure.

[chucko1] 19/4/2021 14:35

You may well be correct, but the small AD just sold went for its valuation and no more, so it was not a kitchen-sinked asset on the face of it.

Were it to have gone for more, I would gladly have sold my daughter to a life of sin to invest further. But as it stands, I have just sent her down the mines. For now.

[ctrader3] 19/4/2021 13:09

it all about opinions, I know that the assets were 'kitchen sinked'
that's what all new management do.
until the news states the opposite I will remain of the view
that the assets were undervalued.
A buyer who has cash to get the assets performing, the
AD model is proven money maker, may be a keen buyer.

[chucko1] 19/4/2021 12:39

"it will be". (what if it is not?) That is the risk in a nutshell - borrower 13 was "performing well" and returned close to NAV - 2x the share price. But the others are not performing so well, and make up the majority or the remaining assets, bar the French glass loan.

Likely result is NAV flat of 35p return from here representing 50% profit (having already achieved a 100% return from the initial 14p), but with increasing risk. All depends on how strong your stomach is and the precise news flow.

On the Xs, the discount is lower but the risk is also lower, I feel. Very good value if no further lockdowns and many of the investee companies are operating acceptably.

[ctrader3] 19/4/2021 11:38

on those assets it will be a cash return of around 13p.
more if u think the assets were undervalued due
to the pandemic.

[ctrader3] 19/4/2021 11:36

AD Plants

We have separated our comment on AD Plants into two categories: those subject to KPMG valuation review and other smaller facilities.



The six plants revalued by KPMG are Borrowers 1, 2, 3, 5, 13 and 18.



Since June, we have actively built upon prior activities to exit these investments and have engaged sales agents to consider the best routes for achieving this in an orderly and expeditious manner. Following additional work on the six AD plants we have provided further information to KPMG and hence the valuation outcomes are reflected more accurately using revised data. In the period since the financial year end, we have had a number of requests for additional funding to cover operating expenses. With no viable equity funder for these projects, the Company has become the primary source of cash for these businesses to remain going concerns. Where there has been a valid case, we have provided relief.



We anticipated placing one or more sites into administration. However, we believe the best outcome is a swift sale of these sites to avoid further capital injection. The sales agent has conviction that buyers exist at or around the valuations provided but we are also prepared to consider an administration route if this allows for preservation of value for our shareholders. We have also noted an improving outlook for our investments on the island of Ireland given increased government support for green energy initiatives.



For the sites migrating towards completion, a slower disposal process is expected. Our initial focus has been on the larger investments and we propose to dispose of our interests in these while supporting others to completion and potential consolidation.



Allowing for risks that may appear over the coming nine months we see the need to provide some additional funding to preserve or enhance shareholder value but are working on strategies to reduce this requirement to the bare minimum. Without providing these funding requests, administration or liquidation is likely.



Borrower 1 - AD Plant - NE England



Stage 3 Credit Exposure £41.38m ECL £27.47m Net Carrying Value ("NCV") £13.91m



The plant faced cash flow issues due to delays experienced in the grant of accreditation for subsidy via Renewable Obligation Certificates ("ROCs"). Without these the plant would have had uncertain value. Fortunately, in August 2020 accreditation was achieved on a back-dated basis, and the first cash flows were received in September. However, a backlog of creditors remained, some of which have been long overdue and a lease remedy was required due to a number of breaches predating our appointment. Legal costs and fees associated with resolving disputes over land rights are expected and these amounts which are overdue will strain cash flow for the remainder of 2020. We intend to explore a sale of this investment early this year.



Borrower 2 - AD Plant - NE England



Stage 3 Credit Exposure £32.19m ECL £19.01m NCV £13.18m



After several years of struggling, the plant has now obtained required regulatory permissions and maintained a broadly stable bacterial state. Covid-19 has impacted feedstock availability and hence revenues, but the plant is broadly cash flow neutral. We intend to explore a sale of this investment early in 2021 as, given the ramp-up status of the plant, we are hopeful it will be of interest to potential purchasers.



Borrowers 3, 32 & 33 - AD Plant - Donegal (Borrowers 32 & 33 are the VAT reclaim positions)



Stage 3 Credit Exposure £29.60m ECL £17.99m NCV £11.61m



The plant has required a significant upgrade for some time to reach breakeven point. We reviewed options and found it appropriate to seek another funder to provide the necessary capital injection given our reduced appetite for risk in AD and the wind down of the Company.



We have interest from an institutional buyer and are at an advanced stage in the due diligence process. We expect some further funding to be required to permit the plant to continue operating through to completion of due diligence and are examining options to suspend activities if we are unable to sell at a satisfactory price.



We have been working on amendments to some contracts which have slowed the sales process. However, good progress has been made to remedy these and the agents hope that everything will be in place for a transaction to be agreed this year, we make this statement with the necessary caveats regarding any unforeseen issues arising.



The Borrowers 32 and 33 reference VAT reclaims that have very little probability of recovery and have been assigned zero value as at June 2020. These were capitalised and formed part of the overall NAV from February 2016.



Borrower 5 - AD Plant - Scotland



Stage 3 Credit Exposure £24.86m ECL £18.71m NCV £6.15m



On initial review, a large funding need was identified to ensure feedstock was procured for the site to maintain operations. This was contractually committed by the Company but undrawn. The plant operator reported that the tanks were failing, so operations have been severely scaled back to a minimum while a sale process can be executed. We are negotiating with an institutional buyer prepared to undertake a series of remedial and upgrade actions that we are unwilling to finance at this point and we are at an advanced stage in the due diligence process.



Borrower 13 - AD Plant - England



Stage 3 Credit Exposure £8.64m ECL £5.60m NCV £3.05m



This plant is performing well and has been subject to a sale process for most of the year. Due diligence by a prospective buyer is expected to conclude by the year-end which should result in our exit from this investment. We hold 50% of the facility shared with another institutional investor.



Borrower 18 - AD Plant - NE England



Stage 3 Credit Exposure £4.63m ECL £4.63 m NCV £0.00m



This borrower is in administration and would require significant additional capital investment to resume operations. We identified a need to cover significant administration expenses, further remedial costs post administration and a significant working capital requirement. After negotiating with the administrator, it was agreed that circa £1.1million was required to recover the plant. Much of these costs related to legal action by the landlord / original project sponsor. An additional cost stemmed from working capital requirements as the plant is no longer registered for the various government incentives. This is estimated at around £500,000 to cover a twelve-month period.



Given the limited upside after taking these expenses into account, we have agreed that the administrator should progress with a sale to a third party. We expect no recovery on our position.

[ctrader3] 19/4/2021 08:18

Kibo Takes Major Step Forward in Execution of the Company's Renewable Energy Strategy



Kibo Energy PLC ('Kibo' or the 'Company'), the multi-asset, Africa & UK focused energy company is pleased to announce that it has commenced an extensive due diligence process in relation to the potential acquisition of all or part of a prospective portfolio of UK renewable energy projects.



The opportunity consists of several attractive standalone renewable energy projects in the UK, focusing on the generation and/or storage of electric power from renewable generation sources. The portfolio consists of several waste-to-energy projects in which the Company has negotiated exclusivity and a first right to acquire, subject to successful due diligence results and an agreement on commercial terms and conditions. Any successful acquisition(s) from the project portfolio will enhance Kibo's strategy, which is focused on transforming and integrating conventional energy generation into sustainable renewable energy, and in the process support the UK's Renewable Energy Strategy.

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maybe just maybe ?

[wilwak] 19/4/2021 05:52

There’s been no announcements of asset sales in the KKVX portfolio so dare I suggest that the latest ‘capital return’ has been funded from income? It could also be loans simply maturing but the X shares were paying a covered dividend before the ‘collapse̵7; so there’s every chance the X fund is still generating a strong income flow.

Either way, it makes me feel positive about the X share price.

[redhill9] 18/4/2021 09:43

The share price of KKVL has increased by around 10% this past week after a period of being held back by a persistent seller. This may just reflect the attraction of the imminent ROC but have you seen any indication the large seller has ceased?

I hold a full quota at the moment but am thinking of buying after the ROC and when the next indication of NAV is released.

[ctrader3] 14/4/2021 14:16

capture 32
the above post is incorrect, the NAV was reduced by 5p.
I thought at the time the company had been ahead of the
game but I was wrong.
As the 5p (4.5p)was never included in the NAV it shouldn't have
been reduced by 5p.
there will be a further 5.5p deducted, the chart
will be wrong so I will not copy it again.
the C chart is correct.

[ctrader3] 14/4/2021 13:11

they returned 12p which is shown on the chart and
they are going to return another 6p.
so the NAV will be circa 50p.
that is based on the last announced NAV which may
of course now be higher or lower.

[2wild] 14/4/2021 12:51

What will the NAV be for the Cs on Ex Return day

[ctrader3] 12/4/2021 09:58

WINS have edged up to 23.1p

[ctrader3] 12/4/2021 09:00

WINS has edged up to 22.9p,they obviously think they
can get more for the shares on their book.
mmakers have a big advantage as they know the number
of shares waiting to bought or sold.

[ctrader3] 12/4/2021 08:35

if u look at L2, u don't really need it to trade
unless u trade intra-day.
IG provides it free with some of their accounts.
There was a 15k trade with WINS, they still sit
showing 15k so there is no way of knowing how many
shares they have to sell.
until they finish selling the price isn't going higher.

[ctrader3] 12/4/2021 07:39

solid buying, I wonder what price will entice the sellers ?

[ctrader3] 10/4/2021 08:15

Secured Income recent interim.

[makinbuks] 09/4/2021 15:36

thanks ctrader