Feltex (FTX) - All over for shareholders

[Pennywise]

tHE FUNNIEST THING TONIGHT IS THE SiLeNCE FROM bELGARION BUT HE HAS ENOUGH TIME TO POST RUBBISH ABOUT the bUSH in off topic EVEN THOUGH THE WIFEY WILL KILL HIM FOR LOSING $200,000...SPEAK NO EVIL? HEAR NO EVIL[^]

[trackers]

So what's up with FTX huh? Cheap carpet for my house? cool

[Base Trader]

If GH makes an offer and this does not include ANZ taking a hair cut then it is largely problem solved for ANZ. Creditors will again likely give terms, they will implement improved inventory management and receiavble terms improving in line with GH current arrangement - hence working capital improves almost immediately.

Turners offer will hardly be handing a cheque to the ANZ. It will refinancing debt for a term at close to current levels with the cash used for restructure purposes and managing working capital. Sure debt will reduce with injection BUT the facility size will be unchanged and so maybe drawn to this level in future (subject to covenant compliance). ANZ will still have to trust that Turners can turn this company around.

I actually believe that the Feltex product abnd market is seriously underperforming and this is much of the problem.

As for Banks being smart? I would tend to say that they (we) are the dominant negotiator rather than smart.

[Toddy]

quote:Originally posted by Pennywise

tHE FUNNIEST THING TONIGHT IS THE SiLeNCE FROM bELGARION BUT HE HAS ENOUGH TIME TO POST RUBBISH ABOUT the bUSH in off topic EVEN THOUGH THE WIFEY WILL KILL HIM FOR LOSING $200,000...SPEAK NO EVIL? HEAR NO EVIL[^]

Belgarion probably watched Bruce Shephard (the shareholder's knight in shining armour)on the tvnz business programme this morning. He basically said that the most likely course for shareholders to get anything out of this show now was by disolving the company, and using what little money they may get back to take legal action against the management/auditors/brokers etc.

I guess that Friday cannot come soon enough.


Good luck

[kura]

quote:Originally posted by trackers

So what's up with FTX huh? Cheap carpet for my house? cool

Yep, kura hopes to carpet his cave, once the receivers start discounting the stuff.

But in all seriousness folks, the fact that GH have walked away is mildy positive, in that we are now left with the Sleepyhead proposal, (whatever it may be) as the only viable option for ANZ that don't/won't involve ANZ taking a significant haircut, so theoretically the bank will now be a lot more "helpfull" in accommodating a Sleepyhead recapitalisation proposal.

PS: Pennywise, please give Belg a break, I can recall feeling the pain of Access Brokerage when it originally looked like I was going to be down by a significant number, and the feeling wasn't nice. Well, OK, gloat if you must, but just don't rabbit on about it for too long ay

[COLIN]

quote:Originally posted by hairdresser

The following is a true story only the names have been changed to protect the innocent.

Tim owes $140 to Franz.

Franz wants his money back.

Tim doesn’t have the cash but he does have some old CD’s that Franz reckons are worth around $100 on TradeMe. Tim says he can have the CD’s instead of the cash.

Then Franz hears that Ted wants to give Tim $40 to listen to his old CD’s.

Franz waits until Tim gets the $40 from Ted gives it to him before he goes around and collects the old CD and sells them for around $100. Franz gets all his money back.

Also Tim and Franz know that Jeffrey would love to add the CD’s to his collection as this will enable him to complete his set which would then be very valuable and be worth far more to Jeffrey than the $140.

Does this sound familiar. On a more serious note.

Why would the ANZ stop the Turners from shovelling in some cash and repaying some debt? They will end up in a much better position in the event of a recovery. They don’t lose any of their rights, and at $100m stock and debtors would just about get the bank out. Plus anything they can get out of the plant, equipment and land.

GH don’t win in a liquidation. What assets would they want, stock debtors plant and equipment???? If FTX go under there will be a big gap in production that many players including GH and Mr Magoo and his Chinese friends would move to fill.

Why would the ANZ not support the Turners? Their worst outcome is that they will end up in a better position to the tune of $40m. And it may put pressure on GH to come up with an offer that shareholders will accept and ANZ will end get all their money back.

NB Banks don’t lose money [or much anyway] because they are smart.

But what can the Turners bring to the party? Experience in carpet manufacturing? Ability to convince hard-nosed bankers that they have the wherewithall to turn this mangey dog into a lion? A bevy of credible institutions prepared to underwrite a massive cash issue? (Its obviously going to take a lot more than $40m to save the day).

Receivership seems pretty inevitable, I'm afraid.

[kura]

quote:Originally posted by hairdresser
[br

GH don’t win in a liquidation. What assets would they want, stock debtors plant and equipment???? If FTX go under there will be a big gap in production that many players including GH and Mr Magoo and his Chinese friends would move to fill.

Dissagree Hairdresser, have you considered that GH only wanted the "nice bits" of FTX, and were only prepared to make a bid for the whole company, to get the part that would neatly fit into their operations ?? In a receivership situation, they will be able to just pick the eyes out of the FTX carcass, yes receivers have a preference for selling an entire bizz, but as their only mandate is to "get the money" it is their right to decide if a bizz should be sold in whole or in parts.

Just for clarification, I consider the "nice bits" of FTX to be the traditional/historical NZ FTX bizz, the way I see it, is that it is the Aust bizz, that was purchased while FTX was in private equity ownership that has been the real destroyer of value.

[winner69]

quote:Originally posted by Base Trader



I actually believe that the Feltex product abnd market is seriously underperforming and this is much of the problem.

Finally somebody has seen the real cause of all the problems ... well said Basetrader

So the real 'lie' in the prospectus and all the hype that went with it was that Feltex was an iconic brand ... when in fact it was a brand slowing dying.

[Toddy]

I wonder if FTX shares will be suspended from trading from 5pm today.
So if you want to sell then get in quick, otherwise you may miss out 'forever'.

FTX
07/09/2006
GENERAL

REL: 0938 HRS Feltex Carpets Limited

GENERAL: FTX: UPDATE

Feltex has been advised by the ANZ Bank of a deadline of 8:00 am (6:00 am
Melbourne time) on Friday 8 September, by which the ANZ Bank must receive
details of any acceptable offers for the Company or its businesses or to
recapitalise the Company. Any such offers must be fully funded. This
information was advised to Godfrey Hirst and the Turners with a request for
an immediate response and with an invitation to make such an offer to the
Company by 5:00 pm Thursday 7 September.

Godfrey Hirst has confirmed that it will not be submitting an offer. The
Turners have advised that they will make their offer by the stipulated
deadline.

The ANZ Bank has also advised the Company that it will not permit any further
drawdown against the Company's facilities for the remainder of this week.
The position is to be reviewed by the ANZ Bank on Friday. The Company is
able to make payments from its cash balances but this means that payments to
some suppliers may be deferred.

As previously advised by Directors, the pressure the Company is experiencing
relates to resolving the debt levels of the company and does not reflect on
the current trading performance which is strong. August sales exceeded
budget and the forward sales order book remains healthy.

Ends.

[Pennywise]

forced forward a day?...thought it was by 5pm Friday.
Todays the day

BTW: HWE had a forward order book of $2.5b, didn't mean a thing.

NOW is the hour...and only 7 to go