SLF Realisation Share Discussion Threads

[ctrader3] 28/10/2021 14:28

alas, we are only mushrooms.

[gopher] 28/10/2021 09:35

Does anyone have a view to how close they are to completing most of the disposals by Christmas when current contract ends?

[chucko1] 21/10/2021 13:28

"The team continues to progress asset disposals opportunities while working with borrowers to maximise recovery and returns, and the Board is of the view that the Company's managed wind-down has not been materially impacted by Dawn's absence."

Perhaps they are now of the view that there had been a material impact on the portfolio owing to her presence!

[spectoacc] 21/10/2021 13:01

"The Portfolio Manager has informed the Board that Dawn's leave of absence has been further extended and at this current time it is not clear to the Board if Dawn will be able to return in the near term."


Hasn't been relevant to the share price or returns.

[ctrader3] 08/10/2021 12:06

Russia on Wednesday offered to pump more natural gas to Europe, sending natural gas prices lower and contributing to the decline in oil prices.

"The Russian-inspired sell-off in natural gas prices has quickly come to a halt with prices steady overnight, as the markets digest the reality of the high in rhetoric, but low in specifics nature of the announcements," Halley said.

He added: "With China in the market 'at all costs' for energy supplies and no instant magical panacea for Europe and the UK's energy woes, the Russian announcements were never likely to have more than a transitory effect."

Investors see no immediate resolution to supply tightness and rising demand, which is fuelled by lifting of lockdown restrictions.

[ctrader3] 08/10/2021 09:05

the current gas price could make the AD's more valuable, if not
it should encourage the buyers out there to buy.

[ctrader3] 07/10/2021 13:40

KKV stated the blended yield was 9.6% and their management fee
is now......


The key terms of the Agreement are set out below:

· Management fees payable by the Company to KKVIM of: (i) £230,000 for the month of July 2021; and (ii) £218,500 per month from 1 August 2021 to 31 December 2021;
· A payment of £100,000 in total payable by the Company to KKVIM conditional on the publication of the Company's audited accounts for the financial year ending 30 June 2021 and the continued provision of certain employees' services to the Company to 31 December 2021............

allowing for extra costs there should be some cash accruing in the
company as there has been no word of anymore companies defaulting
on their loans, remembering the mushroom factor of course.

I wonder if there is spare cash, if they plan to return any of it to the
shareholders ?

[ctrader3] 06/10/2021 11:09

the amount of cash muted for return is modest compared to
previous amounts, considering the expense of issuing and
cancelling shares.

I wonder if there is something larger waiting in the wings
waiting to be signed off ?

or

there is nothing waiting to be signed off in the
foreseeable and therefore the cash is to keep
the current shareholders interested ?

[chucko1] 06/10/2021 09:47

The write downs to zero were basically settled at 25%. This write down is not outrageous as opposed to the early insurance co. loans which settled at a much higher percentage and were also written off entirely.

I suppose this gives extra "optionality" to the values of the ADs in that the Board were hardly being aggressive on the final marks in general. Since a year or so ago, apart from one AD further small reduction in estimate, no loan has failed to achieve the same or more than the mark.

[ctrader3] 06/10/2021 09:05

borrower 18 credit exposure 4.83m
borrower 35 credit exposure 5.78m

although in similar portfolios u would expect
some non performing loans, it's the nature
of the beast.

[spectoacc] 06/10/2021 09:05

Yet another example of the weirdness of the massive write-downs that never should have been.

What - on earth - were they playing at, and what compensation for shareholders who sold out at big losses, based on what the co was saying?

But onwards & upwards for the C's, hopefully another return soon.

[ctrader3] 06/10/2021 08:44

The loans have been purchased for consideration of US$4.0m. As at 31 December 2020, the loans had a carrying value of zero............

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guess that transaction will not achieve a prominent position in their C.V.s

[ctrader3] 06/10/2021 08:37

KKV Secured Loan Fund Limited

(the "Company")



LEI: 2138007S3YRY3IUU4W39



Update on Assets

The Board of the Company is pleased to announce that two loans within the C Share Class Portfolio, that provided regulatory capital for a US insurance business, have been purchased by another party. The loans have been purchased for consideration of US$4.0m. As at 31 December 2020, the loans had a carrying value of zero. The loans were marked as Borrower 42 and 58 within the C Share Class Portfolio in the December 2020 Half-Year Report and Accounts.

Additionally, a loan within the Ordinary Share Class Portfolio that financed domestic heating systems and associated maintenance contracts has been settled. The loan was purchased for consideration of £3.8m. As at 31 December 2020, the loan had a carrying value of £3.0m. The loan was marked as Borrower 10 within the Ordinary Share Class Portfolio in the December 2020 Half-Year Report and Accounts.

Finally, the Board of the Company would also like to notify investors of two smaller settlements of positions within the Ordinary Share Class Portfolio, as detailed below:


Borrower

Consideration

Date of Completion

December 2020 Carrying Value

Loan Description


181

£0.0m

12 July 2021

£0.0m

Farm scale AD Plant


35

£0.3m

31 August 2021

£0.0m

Moveable micro hotel


1. Position was written off post receiving nil value from administration

The Directors intend to convene a board meeting in the near future to consider a further return of capital.

[ctrader3] 01/10/2021 11:53

yep but the one thing this market has is, cheap
money in bucket loads.

[chucko1] 01/10/2021 11:49

Kind of, but the two recent purchases are of pretty small scale and the one thing we know is that the larger KKVL ADs are in need of deeper pockets.

[ctrader3] 01/10/2021 11:40

Yep, it's the same as when u get the first bank rate
increase, the increase matters little but it's the trend it's
setting that makes the markets fall.
the recent buys shows there are buyers out there for
the right AD'S.
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this initial acquisition can serve as the template for other opportunities that we are screening

[chucko1] 01/10/2021 11:02

Still small scale, but steps in a useful direction.

[ctrader3] 01/10/2021 10:50

Scirocco Energy plc

("Scirocco Energy" or "the Company")

Completion of Acquisition of Greenan Generation Limited

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets is delighted to announce, further to its 25 August 2021 RNS, the completion of the acquisition of Greenan Generation Limited (GGL) and its 0.5MWe Anaerobic Digestion (AD) plant in Northern Ireland by Energy Acquisition Group Ltd (EAG).

This marks the first acquisition under the joint venture with EAG that was announced last month, whereby Scirocco holds a 50% interest in the EAG joint venture (the "JV").

Highlights

· Scirocco Energy platform company EAG has acquired 100% of Greenan Generation Limited (GGL) and its 0.5MWe Anaerobic Digestion (AD) plant in Northern Ireland



· GGL is a cash generative, operational AD plant which can be optimised to enhance EBITDA margins and free cash flow



· The anticipated gross initial annual turnover from GGL is c. £1.1m



· This aligns with the new strategy, approved by Scirocco Energy's shareholders on 9 July 2021, to deliver value through acquisitions in the European sustainable energy and circular economy markets





Tom Reynolds, CEO at Scirocco Energy, comments: "I am delighted to announce the completion of this acquisition today, marking important progress in Scirocco Energy's new strategy to target assets within the European sustainable energy sector.

GGL has been the subject of rigorous DD by the JV which confirms that this is a robust first asset that will deliver immediate cash-flows and provides clear opportunities for optimisation that will further enhance the value of this acquisition.

Most importantly, it provides the blueprint for future acquisitions within EAG's pipeline of opportunities. We see the AD and biogas sector as an attractive market landscape within Scirocco's "Energy" investment channel and are delighted to be able to access the unique expertise and network afforded by EAG.

We're also pleased to be growing the portfolio with assets that support the UK's net zero targets which will be at the heart of everything we do going forward."



Chris Kerr, Managing Director, EAG added: "We are excited to complete the first transaction since the establishment of our JV with Scirocco, highlighting the complementary strengths of both firms. The partnership is well positioned to take advantage of the growing UK biogas market and this initial acquisition can serve as the template for other opportunities that we are screening, given its proven operational status and clear scope to enhance free cash flow and EBITDA margins through a programme of plant optimisation techniques."

[richyggg] 29/9/2021 12:43

Indeed. I think someone knows something.

[chucko1] 29/9/2021 11:48

Hmm. 1mn on the bid. NAV of 24.5p with AD assets representing 14.4p of this. Most AD assets written down to between 20% and 33% of loan amount and the fund trading at a now 35% discount. In other words, these AD assets are priced in the market at between 13% and 20%.

Wind energy seen to have limitations and Bio will not fail from a security standpoint whose currency seems to have increased markedly the past days and weeks.

Food for thought.

[ctrader3] 27/9/2021 12:03

CATCo Reinsurance Opportunities Fund Ltd - invests in catastrophe reinsurance risks - Bermuda-based Markel CATCo Investment Management Ltd, the company's manager, offers to fund a buyout that would provide an accelerated return of substantially all net asset value to investors. CATCo Reinsurance Opportunities Fund has been in run-off since 2019. Affiliates of Markel Corp will provide up to about USD150 million to facilitate the buyout of retrocessional segregated accounts of the fund.

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but dreaming only comes true in Disney films.

[ctrader3] 24/9/2021 12:00

The energy market is under stress, and several small firms have now gone bust.

It is thought more could be at risk, with the Big Six companies will be the most likely to survive a difficult winter.


At the beginning of the year there were about 70 suppliers in the UK, but there are a small number of large ones that take up the majority of the market share.

The Big Six energy companies used to be the only serious names on the market, and held about 90 per cent of the market share until around 2014.

In recent years Ofgem allowed more small suppliers have come into existence to encourage competition.

However, in 2019 the Big Six still held around about 70 per cent of the market share.

Why are energy companies going under?
There are a number of contributing factors; the economy is opening up from its pandemic lows causing an increase in demand for gas, while Europe will soon enter its winter months when gas demand will be highest, especially in countries such as the UK which overwhelmingly relies on gas to heat homes.
But a perfect storm of further problems has also hit the sector. Supply from Russia has dried up recently, and demand is high in Asia, which is putting pressure on international markets.


In the UK, several gas platforms in the North Sea have closed to perform maintenance that was paused during the pandemic.

Cables that import electricity from France were also damaged last week, and September has not been a very windy month, meaning there has been less wind-power production, creating a need for more gas to produce electricity instead.

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it's an ill wind that does no-one any good. I hope they use
this weather window to shift on all the AD's, the good, the bad
and the ugly.

[chucko1] 24/9/2021 11:39

Interesting posts, although the issue I have is that the market cap of Kibo is a mere £5.6mn and is likely only to be able to look at the smaller plants.

The market cap was once £130mn or so a few years back, and was seemingly approaching £1bn a decade ago. All squandered on fossil fuel interests.