Feltex (FTX) - All over for shareholders

[Base Trader]

GH is simply waiting on the sidelines for the Turners offer to run its course. The fact GH are now publically stating they "have not actually formerly withdrawn their offer" (despite not correcting the press at the time) would indicate to me that the Turners offer is about to fall over.

The alternative explanantion is that ANZ is about to agree to some concession and now the bid looks better so GH are in.

[sekrub]

Turner's update.....so, they have the BNZ on board.
If this all comes to nothing, and it's going to be hard
to get support for a 10c rights issue at the current share
price, you gotta take your hat off to them for what seems
a most professionally mounted attempt. Hope they make it.




Turnerco presented to the Feltex Board on 8 September 2006 a viable rescue
package for Feltex Carpets. The Feltex Board submitted this Offer to the
ANZ Bank on 8 September 2006 and said it was prepared to recommend it to
shareholders.



Our rescue package would see the company re-capitalised and refinanced to
enable Feltex to remain listed on the NZX and trading as a New Zealand
company.



Importantly the rescue package would save Feltex, its staff, shareholders
and creditors from the ANZ's alternative, which is to enforce its security.



Our bid is backed by our capital and expertise, some of New Zealand's most
successful business people and significant numbers of Feltex staff and
shareholders all prepared to stand behind it.



We have consistently made our commitment to this rescue package clear to the
Feltex Board and the ANZ Bank and have met all the Bank imposed deadlines in
order to urgently secure the future of Feltex. This has included obtaining
a funding facility from the Bank of New Zealand to refinance Feltex and
become the company's Bank going forward.



During our negotiations with the ANZ Bank over the past two weeks we have
provided them with the approved Bank of New Zealand funding term sheet and confirmation of the Turnerco and other Core Investors'
commitment to providing or underwriting $63.5m of capital and
mezzanine debt.



The rescue package provides Feltex shareholders with a choice about their future with the company and the option to share in any upside
from an improvement in the company's trading and financial positions.



The uncertainty over the company's future and its funding is now leading to the gradual demise of Feltex. This is regrettable.



Should the ANZ agree to our proposal we stand ready to recapitalise Feltex, subject to the EGM vote.



It is critical to allow Feltex shareholders the opportunity to vote on the future of Feltex at the company's EGM.



Regards

Graeme and Craig Turner

[Base Trader]

Just to ask a retorical question - can someone tell me why the ANZ would be resistant to an offer that included the refinance of their funding?

Well to answer that question - they would not!

It is clear that the information is simply half truths under the guise of commercial sensitivities. The investors are asking ANZ to swallow some pain: either a write-off, (and) a surity of some type to remain in place, or debt for equity proposal.

I would suggest that if the ANZ is asking to take some pain that the outlook for any current shareholders is bleak.

[moimoi]

hmmm tend to agree.

After some initial bluster from ANZ requiring the offer to be delivered prior to 8am...they same to have fallen deadly quiet.

Can't help but suspect that the "proposal" is being punted around a variety of desks at the ANZ with all in sundry not looking to be holding the short straw of signing off on a decision.

Must say am also somewhat surprised at the lack of noise from the govt...especially considering the length of their sticky beak recently.

cheers
Moi.

[kiwi_on_OE]

Sounds reasonable what you say about ANZ having to take a hit, or a least the possibility.

Maybe BNZ won't give funding until a certain amount of cash has been put into Feltex by the Turners, so ANZ would have the risk until then too.

Good business by Turners/BNZ, if they walk, ANZ probably know they will only get 90 cents in the dollar (as an example) selling in receivership. Turners could say they'll pay 85 cents in the dollar in 1 mth, ANZ would be better off without the hassle of receivership, would get their money sooner, and wouldn't get the bad PR of flushing Feltex down the system. Guess ANZ want Hirst back at the table to put some pressure on Turners.

I wonder if Turners have had a quiet word with Hirst saying they'll flick on some pieces to Hirst afterwards?

[redzone]

GONE...HISTROY....CARPUT

[minimoke]

Yea, I'm pretty sure I can hear that fat lady singin her heart out

[Albert]

Looks like today is the day for it.....rather a shame for the workers.!.

[winner69]

If what is rumoured to be announced at 8am eventuates some of you will be thinking of the workers (if some of your posts are anything to go by) ..... those workers need to blame the shareholders who devoutly wanted to keep this iconic company in NZ .... Hirst had the cash but the shareholders would have said stuff it

Turners did their best in the national interst but were pushing the proverbial up hill .... they will now play the good guys who tried but the big bad bankers in OZ won out in the end ... well they did save face ... sort off ..... good story though

Again mountains of debt wins out ... one thing in life that never goes away

Feltex is just another casualty of what always comes around ... the weak every now and again have to go to let the rest survive .... things like this happen when economies/markets get tough ... it is the natural order of things.

Let the commiseration begin

[Albert]

Well said W69, admittedly the losers out of this will be the workers and their immediate families.

I would be extremely interested to see what sort of pieces Hirst pick up after the receivers have been through the business.

My condolences also to the shareholders who have tried to stick with FTX through this.....

[minimoke]

quote:Originally posted by winner69

.... Hirst had the cash but the shareholders said stuff it


The option was never given to shareholders. The original GH offer was rejected by the Board, along with a range of other offers which were around at the time which the Board has never told shareholders about.

Commiserations certainly to the workers who have had to bear the brunt of totally incompetent management from the board down. The only glimmer of hope is given the 3.8% unemployment these skilled workers should have little difficulty finding alternative employment. Excepting the poor buggers in places like Foxton. Though I do wonder why any workers with a few clues haven't flown the coop already

[sniper]

Receivership does not mean workers all lose their jobs. The good bits can be sold to GH for example and employees jobs become even more secure. But there will be casualties.

[The BOWMAN]

The money Turners have come up with isn't enough to please the ANZ. And it it WAY WAY OFF to turn around FTX (assuming it can be turned around). If it did go ahead, the same story will happen in one year's time or even quicker. I think this is the better way. There will be redundancies among the workers regardless which way. Now the Hirst will show up and buy and potentially some of the workers will be under better management.

[The BOWMAN]

Any guess of the openning price of FTX? 2C?
There are enough punters out there so the price will surprise me again I am sure.

[Toddy]

Feltex Carpets Limited FTX 22 Sep, 2006, 08:33 RA ANZ BANK INTENDS TO APPOINT RECEIVERS

[warthog]

Working late Todday, in the glow of your Bloomberg screen ...

[Tok3n]

This is bad, there goes another NZ company off the exchange :(, i hope in about 5 years time the only thread here isn't going to be NZO (coz we'll be still dicussing when the Pike IPO is going to go or not)

[Toddy]

The ANZ Bank has advised the Company that it intends to appoint a receiver to Feltex Carpets Limited and to its Australian subsidiaries. The Feltex Board has also appointed Voluntary Administrators in Australia.

The ANZ Bank served notice on Thursday evening that it was withdrawing its 'no action' letter and issued a default notice demanding immediate repayment of all borrowings by the Company.

As previously announced Godfrey Hirst withdrew from negotiations with the Company on September 5. We have since been advised that Godfrey Hirst made an offer directly to the ANZ Bank after that date. The Turners submitted an offer on September 8 which the Company submitted to the ANZ Bank stating that it was acceptable to the Board and which it believed was capable of meeting the needs of all stakeholders including the ANZ Bank. The Turners and the ANZ Bank had been in direct discussions up until Wednesday evening.

In its letter to the Company, the ANZ Bank noted the discussions with both Godfrey Hirst and the Turners but stated, "You have been unable to complete a transaction which will enable the ANZ to be repaid its debt in full. The progress of negotiations is no longer satisfactory to the ANZ".

The Board is frustrated by the fact that the stakeholders of the Company have been put in this position. An opportunity to recapitalise the Company and provide a future for the Company was, in the Board's view, still viable under the Turner proposal. Further, the shareholders of Feltex Carpets will now be denied the opportunity of voting on the future ownership of the Company.

The process of reducing debt by recapitalising the Company's balance sheet had been clearly signalled to the market and to the ANZ Bank by the Company, and the ANZ Bank had earlier accepted the process and the timetable and provided a conditional statement of 'no action' until September 30, subsequently extended to October 20, 2006.

The Directors have been working to protect the various interests of the major stakeholders in the Company being the Company's creditors, its employees, and its shareholders, the majority of whom are New Zealanders, as well as its customers and suppliers. The Board firmly believes that the debt to the ANZ Bank would have been repaid, or restructured, satisfactorily as an outcome of recent efforts by the Company, and that shareholders would have been given the opportunity to vote on their future engagement with the Company.

[Mr_Market]

"The Board is frustrated by the fact that the stakeholders of the Company have been put in this position."

Shouldn't that be :
"The stakeholders of the Company are frustrated that the Company has been put in this position by the Board"

[trackers]

[V]

[trackers]

Oh well its not all bad...If you've got a CFD account (which I don't) go short some FTX if you havent already = free money yay

[Albert]

Looks like it'll open @ 0.015 cents, first seller lining up to dump....

[J R Ewing]

Will there be any chance of picking up carpet at bargain prices?

I have been thinking of replacing mine for some time now.

[Merseyredboy]

The Turners to sue ANZ. Could be the ANZ[}:)] become joint baddies with the Directors...

[Toddy]

Is it too soon for a trip down memory lane.

COMMENT FROM JOHN CAIRNS AT FORSYTH BARR
FTX – Feltex Carpets
Recommendation: BUY

We believe the results of our survey confirm the significant progress FTX has made over the last two years to focus on growing the business and margin expansion. We have a high degree of comfort in the FY05 projection and our $2.05 valuation and reiterate our BUY recommendation.

[Lizard]

quote:Originally posted by Albert

Looks like it'll open @ 0.015 cents, first seller lining up to dump....


Trading will be suspended I think.

[Bling_Bling]

quote:Originally posted by J R Ewing

Will there be any chance of picking up carpet at bargain prices?

I have been thinking of replacing mine for some time now.


Great idea. Maybe time to replace my carpets also. :)

[Lizard]

quote:Originally posted by J R Ewing

Will there be any chance of picking up carpet at bargain prices?

I have been thinking of replacing mine for some time now.


They have probably discounted inventory and bought sales with competitive pricing for the past year. If Godfrey Hirst takes over the stock, then more likely the discounting will be less than it has been.

[Toddy]

Looks like there will be NO TRADING going forward in FTX.
Its all over.

FTX
22/09/2006
RA

REL: 0923 HRS Feltex Carpets Limited

RA: FTX: McGRATHNICOL+PARTNERS APPOINTED RECEIVERS TO FELTEX CARPETS

22 SEPTEMBER 2006 NZX ANNOUCEMENT AND MEDIA RELEASE McGRATHNICOL+PARTNERS
APPOINTED RECEIVERS TO FELTEX CARPETS LIMITED

Colin Nicol, Peter Anderson and Kerryn Downey of the independent
restructuring and corporate advisory firm, McGrathNicol+Partners, have today
been appointed as receivers and managers of Feltex Carpets Limited
("Feltex"), the New Zealand listed carpet manufacturer. We have applied for
trading in its shares to be suspended. In addition, Colin Nicol and Peter
Anderson have been appointed as receivers and managers of Feltex's Australian
subsidiaries.

The appointment of receivers and managers follows the deterioration in
Feltex's financial performance which has led to unsustainable debt levels and
a share price collapse. Feltex is one of the two largest Australasian
manufacturers of woollen and synthetic carpets. It employs around 1,400
people at sites in New Zealand, Australia and the United States of America
and has annual revenues of approximately NZD270 million.

"Having just been appointed we are not in a position to immediately comment
on either the operational or exact financial position of the company. Feltex
is a New Zealand icon and we are moving quickly to ensure that it continues
to operate as normal" said Mr Nicol.

Mr Nicol also advised that he has taken control of discussions with parties
who have expressed interest in acquiring Feltex. "Feltex's strong household
brand names, excellent customer base and outstanding employees provide me
with confidence that a going concern sale of Feltex will be achieved" he
said. "Continued support from Feltex's employees, unions, suppliers and
customers is vital to maintaining operations and business value. Over the
next few days, we will be communicating with all key stakeholders" said Mr
Nicol.

All media enquiries should be directed to: New Zealand Bridget Hargreaves
Gavin Anderson & Company 021 485 422 Australia Nick Maher Gavin Anderson &
Company 0408 386 414
End CA:00137223 For:FTX Type:RA Time:2006-09-22:09:23:51

[Snow Leopard]

Over?
No, it is just beginning.

[J R Ewing]

Sell it as a going concern then. Methinks the conspiracy theorists will have some very fertile manure in which to sow seeds of doubt about this soap opera [}:)]

[Toddy]

quote:Originally posted by Paper Tiger

Over?
No, it is just beginning.


Who says so...... Forbarr?

[Lizard]

Interesting that the NZX have allowed it to trade, despite being asked to suspend...

[warthog]

Suspension isn't immediate.

Now, with FTX trading at 1.5-2cps, where is GH in all of this? ANZ called their bluff, but some brave souls are still seeing value in FTX.

Folly, this hog thinks, for there is no value left if debt exceeds the proceeds from liquidation.

Maybe that buy order for 11m odd shares is Belg there, frantically averaging down?

[Heavy Metal]

I can't believe the NZX allows trade in a company in recievership. Is this a precedent? What a mickey mouse cowboy exchange.

[Lizard]

I haven't seen a stock in receivership actually still trade before. I assumed it was compulsory to suspend under either legal or exchange rules.

[Heavy Metal]

Did the one person actually working in the NZX office (the receptionist) miss the request for a trading suspension?

What gross incompetence by the NZX (again).

[Enumerate]

Seems to be strange behaviour from the ANZ bank. It was revealed that the Turner Bros bid was fully funded - the ANZ simply had to maintain funding until the shareholders meeting.

If there is a rapid sale of selected assets - I would be suspicious. If this sale is to GH or nominee - I would smell a rat.

Looks like the worst outcome for Feltex shareholders, unfortunately.

Brave play, for those of you still in. This one could be in the category of a stupid bank destroying significant stakeholder value in the rush to "preserve" its loan book.

I always am amazed that banks seem to project the aura of "understanding business" - when their assessment and response to risk situations is usually extremely self centred.

[Toddy]

I'm off to bed. Had enough of this micky mouse show.

FTX
22/09/2006
GENERAL

REL: 1019 HRS Feltex Carpets Limited

GENERAL: FTX: ANZ comments on Feltex receivership

ANZ comments on Feltex receivership

ANZ today confirmed that it has appointed receivers to Feltex Carpets
Limited. The appointment will secure the company's position - and that of its
staff in New Zealand and Australia.

ANZ has, over many months, provided the opportunity to Feltex to discuss the
future of the company and to develop a solution to its financial
difficulties. During this time, ANZ has devoted considerable resources to
considering a number of financial proposals developed by the company and
other parties.

ANZ National Bank Chief Executive Officer, Mr Graham Hodges said: "ANZ has at
all times carefully considered solutions developed by the company to address
its precarious financial position in the interests of all stakeholders
including employees, creditors, customers and shareholders. However a
proposal could not be finalised.

"During this time, ANZ has also been ready to support a transaction to
recapitalise the company. However, despite lengthy discussions this has not
been successful and there has been no choice but to appoint receivers.

"ANZ has appointed Colin Nicol and colleagues from specialist firm McGrath
Nicol as receivers to both the Australian and New Zealand operations. This
will ensure Feltex continues to trade with the bank's support and that the
statutory entitlements of all employees are protected.

"We expect McGrath Nicol will bring about a speedy resolution to a sale
process that best preserves the business's value for the benefit of Feltex,
its stakeholders and the bank," Mr Hodges said.

Although ANZ does not normally comment on customer relationships, the bank
has made these comments given the developments today and the announcement
from Feltex.

ANZ's exposure to Feltex is in the region of A$120 million and the exposure
has already been adequately provided for.

[biker]

quote:Originally posted by Toddy

I'm off to bed. Had enough of this micky mouse show.

FTX
22/09/2006
GENERAL

REL: 1019 HRS Feltex Carpets Limited

GENERAL: FTX: ANZ comments on Feltex receivership

ANZ comments on Feltex receivership ...........

[u]ANZ's exposure to Feltex is in the region of A$120 million and the exposure
has already been adequately provided for. </u>


Just to let you know that our exposure has been, and always will be our one and only concern, it is adequately provided for,and we are really feeling quite smug about it.

[warthog]

It would appear to the hog that the ANZ has been, as far as banks go - and one has to view the ANZ alongside other banks - quite patient and supportive for a party who is owed $140m+. Indeed, extending credit to the extent that it has can't be taken for granted.

It is the nature of the banking business to be conservative and preserve capital - any bank who does not behave like this ultimately finds themselves sitting on the tracks when the freight train arrives.

Exposure is of concern to the ANZ of course, but it is also of concern to the investor (or should be!) - so the ANZ can't be singled out for blame there, as it is simply looking after its own interests when everybody else is scarpering. After all, everybody else is looking after their interests - what do shareholders expect?

Some shareholders want to invest their cash, take the profits but get all sour when things turn to mush. If there's a lesson in all of this, it is squarely up to the investor to adequately provide for the risk involved in the investments they make. If a private equity vehicle is floating a business and exiting completely, one has to ask oneself "if it's as good as they say, why aren't they leaving skin in the game?". Hart did so - for example - with GF, as the market noted.

Oh, and if a company starts to look like they feel invincible and/or not feel the need to meet the minimum levels of disclosure in a timely fashion, investors might ask themselves how this effects the risk exposure, and whether or not it might be a good time to revisit their investment decision.

[biker]

I just don't think the last face-saving sentence in their announcement was necessary.OK,they are adequately provided for in this sorry saga,but there are many people -individuals- who aren't.

[Seti]

Feltex put into receivership
22 September 2006

UPDATED REPORT - 10.35am
ANZ Bank today put Feltex Carpet into receivership, leaving the livelihood of 1400 workers, including 820 in New Zealand, in limbo.


Recriminations and blame for the iconic listed company's collapse and the apparent failure of a rescue package flew from all directions.

Corporate restructuring specialists McGrathNicol & Partners have been appointed as receivers and managers of the group.

The receivers held out some hope for workers, investors and would-be rescuers Craig and Graeme Turner, principals of Sleepyhead.

"Feltex's strong household brand names, excellent customer base and outstanding employees provide me with confidence that a going concern sale of Feltex will be achieved," the receivers said.

They said support from Feltex's employees, unions, suppliers and customers was vital to keep the company's hopes alive.

"Having just been appointed we are not in a position to immediately comment on either the operational or exact financial position of the company."

Feltex has annual revenues of $270 million but collapsed under the weight of over $140m of debt. ANZ demanded repayment and put Feltex in default.

A statement from the Engineering Printing and Manufacturing Union said after speaking to the receivers it appeared Feltex jobs were safe - for now.

At Feltex work sites confusion reined.

At Feltex's Athol Place weaving plant in Riccarton, Christchurch, workers were milling around playing yard cricket. They told NZPA that management had advised them work was available but contractors were told to secure their tools in case the receivers locked the plant down.

Feltex shares, floated two years ago at $1.70, crashed 83 per cent when the sharemarket opened this morning from 9 cents to 1.5 cents.

The first news of the receivership came in the early hours this morning in an announcement from the Turner brothers, whose consortium had made a $51 million rescue bid.

"The bank has taken this extremely serious action in the full knowledge that there was a fully funded rescue package to keep the company as a going concern and protect the interests of Feltex Carpets' 1300 (sic) staff, shareholders and creditors," the Turners said.

They said ANZ had shaken on a deal and the Turners had legal advice it was enforceable "and we will be reserving our rights in this regard". Really? I'd like to see that tested.

Graeme Turner told National Radio their bid had been the only hope for shareholders and probably most of the staff in New Zealand and Australia. Ultimately it was but not originally

Australian rival Godfrey Hirst would keep parts of the Feltex operation going, but said the process would be "pretty ruthless", and as many as half the jobs could go, he said.

"Although they'll keep the brand going, it'll never be the same company again."

[kura]

Well, it was fun while it lasted, this thread has certainly helped pass away a few idle hours on otherwise boring trading days (and also given me an education in interpreting financials) Must admit, that I did like the added irony of NZX allowing trading to commence today, sort of tops off the whole sad affair.

My guess is that workers will be OK, as underlying bizz is still viable (but not with bucketloads of debt) but will probably cause a few sleepless nights for them nevertheless.

My sympathies to holders (Inc Belg) yep, brave playing right to the bitter end, one never likes to see such destruction in value.

Will follow fate of underlying bizz with interest though (ie are Turners still in the play, or is GH going to be the sole beneficiary of this? )

[Lawso]

Aussie-owned bank shuts out Kiwi investors and appoints Aussie-based receivers so Aussie rival carpet maker can pick over the bones of the FTX corpse. Kiwi customers and/or shareholders of ANZ should show their disapproval by changing banks and/or selling shares.

[warthog]

quote:Originally posted by biker

I just don't think the last face-saving sentence in their announcement was necessary.


The ANZ is simply signalling that they have been prudent in their actions, and assuring the market that they are acting and providing adequately for their exposure. As a major bank, the ANZ must also look after its credit rating and general profile in the market.

Actually, the ANZ is simply competent at informing the market. The same could not really be said of FTX.

Did you note that the ANZ said that they don't usually comment in this way? They have done so - it would appear - so as to rebuff criticism and ensure that its position and motivations is widely known and understood.

[warthog]

quote:Originally posted by Lawso

Aussie-owned bank shuts out Kiwi investors and appoints receivers so Aussie rival carpet maker can pick over the bones of the FTX corpse. Kiwi customers and/or shareholders of ANZ should show their disapproval by changing banks and/or selling shares.


Huh? Why would anybody exit their investment in a bank that looks after it's shareholders?

That is what - one assumes - that FTX shareholders would be looking at the FTX board to do?

Is Lawso taking any action on this front? If so, what?

[Tyke]

Just because a company is in receivership it is no reason to suspend trading as long as the market is fully informed.

It happens all the time in the USA where companies shares trade whilst under Chapter 11 administration (the closest equivalent to receivership)



quote:Originally posted by Heavy Metal

I can't believe the NZX allows trade in a company in recievership. Is this a precedent? What a mickey mouse cowboy exchange.

[warthog]

quote:Originally posted by biker

I just don't think the last face-saving sentence in their announcement was necessary.OK,they are adequately provided for in this sorry saga,but there are many people -individuals- who aren't.


Of course - and it is going to be very difficult for FTX employees, who have not been served well by their employers at all - but what do you expect the ANZ to do? They probably went beyond what might be expected of them to give room for the FTX board to secure a bid that would rescue the company.

You might see it as gloating, but there is more than one way to look at it - that's all the hog is saying.

[Lawso]

quote: Is Lawso taking any action on this front? If so, what?
None, apart from the above rant. I'm not an ANZ customer or shareholder and I sold out of FTX @ 168c in Feb '05, achieving an 18.07% profit after tax and brokerage in 10 months.

But if you want to feel really depressed, go back to page 1 of this strangely titled thread and see what punters were saying about their FTX holdings two years ago. Commiserations, PT and others.

[trackers]

"New Zealand Exchange Limited
11:16AM - FTX - Trading in FTX securities"... Could be detrimental to your wealth?

"Feltex Carpets Limited
11:16AM - FTX - Trading in FTX securities"... Is not a good idea?

[trackers]

NZX Regulation Announcement
Feltex Carpets Limited (FTX)
Trading of Securities


NZX Regulation advises that further to the announcement released by McGrathNicol+Partners this morning, no application for a trading halt for Feltex Limited (FTX) has been received by it. Accordingly, trading in FTX securities will continue.


... Oh my, what a shambles

[warthog]

quote:Originally posted by Toddy

Looks like there will be NO TRADING going forward in FTX.
Its all over.

Regardless of what you or the hog think, the fat lady has not been performing yet on the NZX - trading continues (last trade 1134@$0.021).

[Enumerate]

The ANZ had a "no action" letter extended from September to the 20th of October. What caused them to change their minds? Why is GH reported to be responsible for the continued operation of some Australian units of Feltex? There seems some implication that GH will takeover the brand. Why did ANZ entertain a direct bid from GH after the withdrawl, by GH, of the bid to the Feltex board.

I smell dirty deeds afoot - a potential collusion by an Aussie Bank and an Aussie carpet company to take control from the Feltex shareholders and do a nice tidy carve up of assets behind the scenes.

Tell me why the ANZ should not be accused of negotiating a private deal with GH and scuppering a feasible deal from Turners in favour of their own private agenda?

A prima facie survey of the announcements, to date, seems to implicate the ANZ in some back room dealing.

[Lawso]

quote:I smell dirty deeds afoot - a potential collusion by an Aussie Bank and an Aussie carpet company
. . . and an Aussie-based firm of receivers.

[Lizard]

Warthog, thanks for your posts. Good to see someone still talking some sense (along with Winner). It has been apparent since around June last year that Feltex would need some form of recapitalisation. Yet, in this entire period, no proposals have been submitted to shareholders.

Blame the Board for lack of useful action. Blame the float team for the difficult job the directors were handed. Blame the shareholders for their unrealistic expectations once this situation developed. But don't blame the bank. Especially not if it is your term deposits they have been loaning out to Feltex!

[barnsley bill]

The turners claim that they had shaken on a deal is in my opinion bollix. The ANZ must have felt the deal would not get past belg and his rich mates in a shareholders meeting and the ANZ were expected to keep funding until the meeting.
So the Turners portray themselves as the good guys while the bank sends more money down the dunny.
Hope the golden spreadsheet is 3ply

[J R Ewing]

Here's my 2c worth (NOT a formal take over offer).

Who knows which version of events is truthful, FTX, Turners or ANZ's. But I personally think the bad guys are:

1. Those responsible for the IPO. These guys pumped this Coy full of debt and then pushed it off the cliff without any concern for whether it flew or not. [V]

2. The FTX board who presided over this whole sorry saga. :(

I don't think you can blame the ANZ or GH for the mess FTX is in, and you must expect them to look after their interests first at this stage. It seems to me that the ANZ has stood by FTX much longer than it needed to in order to give the board a chance to sort things in a way that left some value for the shareholders and employees.

[Halebop]

I just read back through this sorry thread (well from pages 1 to 51, my stomach couldn't take any more angst). There are some lessons the gamblers could take from the investors...

1. There is no such thing as "good" debt. It's all just Debt.

2. Buy market leaders with a pedigree of success. FTX's pedigree (even before private equity came along) was in aggregating also-rans. Mergers often result in a bigger lowest common denominator, not a better business.

3. Commodity business requires excellent leadership and systems to outperform.

4. Not all share price drops are "blips" to be taken advantage of. When markets stop booming they are often warning signals to avoid more of the same.

5. Don't talk up your book or make crap up. The fickle sharetrader school of opinion will be vicious on the down cycle.

6. When you read a contrary view in sharetrader, put your analysis hat on before wearing your debate one.

[sniper]

Never get emotional - it clouds your judgement.

Also, never use a golden spreadsheet - it doesn't work. :D:D:D

[Enumerate]

The issues as to why Feltex stumbled are moot.

The only relevant issue was the best path forward for all stakeholders, given the mire Feltex was bogged down in.

At this stage in the game:

Why did ANZ give the Feltex board a "no action" letter until the 20th of October and yet:
- entertain secret negotitations with GH
- reject a feasible refinancing proposal that provides a likely acceptable path forward for ALL stakeholders
- recind the "no action" committment and appoint a receiver

Does the ANZ have the right to proceed as they have done - of course they do.

Do they deserve to be pilloried in the market for:
- duplicity - negotiating with GH while the Feltex board was seeking to structure a rescue package
- heavy handedness - sacrificing all other stakeholder interests in favour of their their their sole interest

Why, yes they do, in my opinion.

If it is brown, and it smells ... it must be the ANZ &lt;- a byline you will never see on the TV ads.

[CAM]

quote:Originally posted by sniper


Never get emotional - it clouds your judgement.

Also, never use a golden spreadsheet - it doesn't work. :D:D:D


Be prepared for the wounnds if you are going to try and catch falling knives

[J R Ewing]

"ANZ's exposure to Feltex is in the region of A$120 million and the exposure has already been adequately provided for."

I'm not sure this means that ANZ can recover all of this from the recievership. Surely it can also mean that the risk has been provided for in terms of a doubtful debt on the books?

[Enumerate]

quote:Originally posted by J R Ewing
"ANZ's exposure to Feltex is in the region of A$120 million and the exposure has already been adequately provided for."


What this could be saying is:

"We have done a secret deal with GH and are assured of getting our money back; stuff the Feltex shareholders, employees, suppliers and clients."

[cantab]

quote:Originally posted by J R Ewing

"ANZ's exposure to Feltex is in the region of A$120 million and the exposure has already been adequately provided for."

I'm not sure this means that ANZ can recover all of this from the recievership. Surely it can also mean that the risk has been provided for in terms of a doubtful debt on the books?


Mr Ewing, that's how I read it. ANZ has specific and general provisioning to cover situations such as this, therefore no worries for ANZ shareholders as ANZ will not need to adjust their profit guidance for FY to 30 Sept.

Persons critical of ANZ are nuts. ANZ has IMO been way too lenient and should never have let the debt balloon out to this level. ANZ has a responsibility to its depositors, shareholders and the people of Australia and NZ to act prudently. If a bank gets into trouble because of reckless lending then there are implications for the whole economy including those people who have their loans called in as the bank retrenches. ANZ made the right decision this morning. Find someone else to blame.

I'm surprised that trading in the shares was allowed to continue. Would this have been allowed on the ASX? Does anyone know?

[mothership]

I am finding it a little difficult to summonse up sympathy for the shareholders - its easy to blame the bank but if shareholders were given the option of getting their investment in the company back, wouldn't they? That is all the bank has done - acted in what it sees as its best interest and looked to get its money back. The people who work for Feltex (and I mean the people making the carpet, not the Board) are the ones who deserve any sympathy going.

[Heavy Metal]

quote:Originally posted by trackers


NZX Regulation Announcement
Feltex Carpets Limited (FTX)
Trading of Securities


NZX Regulation advises that further to the announcement released by McGrathNicol+Partners this morning, no application for a trading halt for Feltex Limited (FTX) has been received by it. Accordingly, trading in FTX securities will continue.


... Oh my, what a shambles


Shambles all right. Can't anyone at NZX read? The 0923 announcement clearly states there has been an application for trading to be suspended.

[COLIN]

quote:Originally posted by J R Ewing

"ANZ's exposure to Feltex is in the region of A$120 million and the exposure has already been adequately provided for."

I'm not sure this means that ANZ can recover all of this from the recievership. Surely it can also mean that the risk has been provided for in terms of a doubtful debt on the books?

The answer to your question has got to be Yes. So where does that leave unsecured creditors? The answer to that question is not hard to figure. So, why is anyone paying anything to still buy FTX shares? Beats me!
Warthog, Lizard, and other like-minded savvy posters, I agree with your sentiments. The post mortem analysis of the FTX sorry saga should be compulsory reading for all newbies to the share investment scene - money is too hard to come by to fritter it away on chasing after shadows. As I have said on ST a number of times: The cockroach (read, "borrower, i.e. your company, you as a shareholder") is never in the right where the fowl (read "the bank") is concerned. They are merely protecting the interests of their owners (shareholders) and who can blame them? Its a pity the Feltex Board didn't make a better job of protecting their own shareholders' interests.

[Enumerate]

Talk about a weird form of Stockholm syndrome ...

"The ANZ Bank has been far too lenient ... good show for calling in the receivers" &lt;- basic argument

By giving Feltex a "no action" letter - extended to October - the ANZ clearly signalled to the market it was supporting management efforts to formulate a rescue plan.

However, by engaging in behind the scenes with GH; rejecting an apparently feasible recover plan; revoking the "no action" letter and appointing receivers - the bank has proven to be:

- Duplicitous; and
- Heavy handed

This is the financial equivalent of the "under arm bowl" - legal but not the way we do things around here.

This might be at par for "Collins St" - but on "Queen St" it smacks of the use of the "foot wedge".

I note none of the bank apologists deign to reply to the argument above.

This bad smell will linger around the ANZ for quite some time. If you ever needed an excuse to give Kiwi bank a go - you now have a golden opportunity.

[BRICKS]

WELL,WELL all over other than the fat lady SINGS.. [8D]

[winner69]

You really are in a tiz aren't you eneumerate

[BRICKS]

THE ANZ National Bank is a KIWI ex bank this company is getting what GAVE.. [8D]

[Snow Leopard]

One must assume that the receivers have decided to let FTX trade. There as been more than enough time to overcome any breakdown in communications between the receivers and the NZX.

[duncan macgregor]

Now that it is all over as far as Feltex is concerned think about the losers. I dont mean the shareholders, or even the workers, but the poor sods that supplied goods and services. The share holders can blame their own stupidity for not getting out with a small loss. The workers can find another job, its the people that paid for goods and services that stand at the end of the trough that i feel sorry for. They stand there hoping that there might be a few scraps left after the vultures have a feed. I wonder how many people will go bankrupt because of this. MACDUNK

[Enumerate]

quote:Originally posted by winner69
You really are in a tiz aren't you eneumerate


If by "tiz" - you mean an emotional state - the answer is "no".

However, if by "tiz" - you mean that I am aware that the regional economies of a number of New Zealand provinces are about to take a significant hit because of the loss of manufacturing, support and supply jobs and that the channel for NZ wool into overseas markets is about to be significantly diminished for no other reason that a secret deal was hammered out between the ANZ Bank and GH that only accounted for the interests of the ANZ Bank at the expense of the significant interests of a wider set of stakeholders - the answer is "yes".

[Stranger_Danger]

Who in their right mind is buying this share today?

$80k or so through so far, whats the strategy, buying for the retirement portfolio?

[kura]

quote:Originally posted by mothership

I am finding it a little difficult to summonse up sympathy for the shareholders - its easy to blame the bank but if shareholders were given the option of getting their investment in the company back, wouldn't they? That is all the bank has done - acted in what it sees as its best interest and looked to get its money back. The people who work for Feltex (and I mean the people making the carpet, not the Board) are the ones who deserve any sympathy going.

On the sympathy theme, spare a thought for the trade creditors and other suppliers of services etc, who will now stand behind ANZ in terms of payment priority.

There will now be a scramble for suppliers to check their terms of trade, to acsertain if title has passed in any unpaid goods, and receivers will be booking up fees with glee.

As far as todays trading goes, (approx $80,000 traded) I would get more pleasure watching a pile of banknotes burn, than buying FTX shares today.

Added: Sorry Macdunk, I now see you raised position of suppliers, a friend of mine was bankrupted once (building subcontractor) when the principal company fell over.

[sniper]

Belgarion is very quiet. Wait for him to post after market close and disclose that he has reduced his average entry price to 1.1 cents. :D:D:D

[kura]

I've just been reading news reports, but there has been no info on weather people are still working, or stock moving ? (ie: all news was financial only)

sniper, with price ranging between 1 and 4 cents someone could have made a decent profit today, though risk is too much for me.

[barnsley bill]

quote:Originally posted by sniper


Belgarion is very quiet. Wait for him to post after market close and disclose that he has reduced his average entry price to 1.1 cents. :D:D:D


On a Friday too. Boy is the homebrew gonna get a beating tonight.

[duncan macgregor]

quote:Originally posted by sniper


Belgarion is very quiet. Wait for him to post after market close and disclose that he has reduced his average entry price to 1.1 cents. :D:D:D

It is a sad sad person that takes great delight in anothers missfortune, get a life you creep. Macdunk

[rmbbrave]

And what kind of person denies that Neil Armstrong and others never set foot on the moon?

[J R Ewing]

quote:Originally posted by Stranger_Danger

Who in their right mind is buying this share today?

$80k or so through so far, whats the strategy, buying for the retirement portfolio?



They are cheap shares are they not [:o)]

[zac]

Good old ANZ - just like in the 80's. First in with the loan and first out if the business falters. Those that go back that far may remember the JBL receivership when the ANZ put in a slash and burn receiver and the Govt. under pressue replaced him with a Statutory Manager, Doug Hazard. Doug was unusual in that he worked long hours for low fees to get creditors their money back, and in this case succeeded admirably. After much effort over a few years all creditors were paid out what they were owed.

[J R Ewing]

quote:Originally posted by Enumerate

Talk about a weird form of Stockholm syndrome ...

"The ANZ Bank has been far too lenient ... good show for calling in the receivers" &lt;- basic argument

By giving Feltex a "no action" letter - extended to October - the ANZ clearly signalled to the market it was supporting management efforts to formulate a rescue plan.

However, by engaging in behind the scenes with GH; rejecting an apparently feasible recover plan; revoking the "no action" letter and appointing receivers - the bank has proven to be:

- Duplicitous; and
- Heavy handed

OR, maybe, they got the final proposal from Turners on Wednsday night, gave it consideration and rejected it because:

1. It did not give them all their money back.
2. It was still subject to approval and THEY (not Turners or BNZ) would have to fund the company until that time.
3. All things considered they thought they would get a better and/or more certain return by appointing the recievers, in the knowledge that GH were still interested buyers.

This is the financial equivalent of the "under arm bowl" - legal but not the way we do things around here.

This might be at par for "Collins St" - but on "Queen St" it smacks of the use of the "foot wedge".

I note none of the bank apologists deign to reply to the argument above.

This bad smell will linger around the ANZ for quite some time. If you ever needed an excuse to give Kiwi bank a go - you now have a golden opportunity.

[kura]

quote:Originally posted by duncan macgregor


quote:Originally posted by sniper


Belgarion is very quiet. Wait for him to post after market close and disclose that he has reduced his average entry price to 1.1 cents. :D:D:D

It is a sad sad person that takes great delight in anothers missfortune, get a life you creep. Macdunk


New word for the day

scha·den·freu·de
n.
Pleasure derived from the misfortunes of others.


[German : Schaden, damage (from Middle High German schade, from Old High German scado) + Freude, joy (from Middle High German vreude, from Old High German frewida, from fr, happy).]

[sniper]

quote:Originally posted by duncan macgregor


quote:Originally posted by sniper


Belgarion is very quiet. Wait for him to post after market close and disclose that he has reduced his average entry price to 1.1 cents. :D:D:D

It is a sad sad person that takes great delight in anothers missfortune, get a life you creep. Macdunk


Losers stick together - so we hope you are happy in Belgarion's company. :D:D:D

[Fodder]

Here's one for the believe it or not files:

Feltex still planning $101,000 sponsorship for Melbourne Cup

By NZPA
Friday 22nd September 2006

Feltex Carpets remains committed to sponsoring a Melbourne Cup race, despite being placed in receivership with the future of 1400 jobs in limbo and the company's shares almost worthless.

The $101,000 sponsorship of race 11 at the carnival in November was a commitment the business had had for some time, Feltex spokesman John Walsh said today.

The commitment was made when circumstances were different and since then Feltex had pared back its marketing and promotions budget to an appropriate level but there were some things it could not pare back.

Feltex shares crashed to just a few cents today from an already lowly 9c, having been floated two years ago at $1.70, after news the company was in receivership. On Monday it had revealed a $57.7 million loss.

Walsh said he did not have the details but acknowledged some retailer hospitality would also be involved with the cup event.

The National Business Review reported today that Feltex was understood to be inviting between 70 and 80 retailers and flying many of them to Melbourne.

But Walsh said that to suggest it was a trade junket with no benefit was completely wrong.

It was possible the receivers appointed today could decide to cut the event but the matter was unlikely to be a particularly high priority for them, Walsh said.

A spokeswoman for the receivers from McGrathNicol & Partners was unsure immediately whether the receivers had considered the matter yet.

The race sponsorship is a promotion for a new carpet range called Redbook Total, which is based on a stain resistant technology.

It is not the first time Feltex has raised eyebrows with the timing of high-life events.

On April Fool's Day last year it issued a profit warning, then the day afterwards chief executive Sam Magill and three senior executives flew out with 24 top customers on a 10-day South African safari.

The fact that the safari had been arranged much earlier as a result of good sales the previous year did not mollify investors.

[:o)]

[Fodder]

quote:Originally posted by Fodder




The race sponsorship is a promotion for a new carpet range called Redbook Total



The new carpet range has been named in honour of the lengendary Belge and his now infamous spreadsheet "Redbook Total"

:D

[limegreen]

I remember a few months ago a friend questioning why they still had a big Feltex sign on a building in welly CBD. Although I assume the money for the sign was paid for a set period of time...

[hairdresser]

The situation is not really that much different to yesterday. The ANZ move should bring in the real offers and will put an end to any possibility of further strategic behaviour by shareholders and potential bidders.

If the Turners bid was only conditional on a shareholder vote and the continued support of the bank until settlement they should now be ready to proceed with an unconditional fully funded offer to the receiver. As the bank has now pledged support and a shareholder vote is no longer applicable.

I don't mind potential bidders dealing directly with Messers Downey & Co instead of the Feltex Directors. The Directors have had ample opportunity to arrange for a recapitalisation and have not been able to get one offer on the table or even arrange a rights issue from existing shareholders.

GH will no doubt put their offer in. My guess in the absence of an offer from the Turners their offer will be for 100% of shares in return for repaying bank debt and accepting all the other debts and obligations of the company ie nothing for the shareholders.

I dont think their is any dodgy stuff going on, sometimes things just don't go the way you would like. It is natural for people to look to blame others.

I hope that the Turners are able to front up and put in their "fully funded" offer.

[Toddy]

quote:Originally posted by hairdresser

The situation is not really that much different to yesterday. The ANZ move should bring in the real offers and will put an end to any possibility of further strategic behaviour by shareholders and potential bidders.

If the Turners bid was only conditional on a shareholder vote and the continued support of the bank until settlement they should now be ready to proceed with an unconditional fully funded offer to the receiver. As the bank has now pledged support and a shareholder vote is no longer applicable.

I don't mind potential bidders dealing directly with Messers Downey & Co instead of the Feltex Directors. The Directors have had ample opportunity to arrange for a recapitalisation and have not been able to get one offer on the table or even arrange a rights issue from existing shareholders.

GH will no doubt put their offer in. My guess in the absence of an offer from the Turners their offer will be for 100% of shares in return for repaying bank debt and accepting all the other debts and obligations of the company ie nothing for the shareholders.

I dont think their is any dodgy stuff going on, sometimes things just don't go the way you would like. It is natural for people to look to blame others.

I hope that the Turners are able to front up and put in their "fully funded" offer.



Except that the shareholders and board are out of the picture and out of pocket. They do NOT get to have a say anymore. The receivers can sign a deal off that suits the ANZ Bank.

[Snow Leopard]

It was reported on 3 News that the receivers are looking to sell Feltex as a going concern within 6 weeks and that they had expressions of interest from both Godfrey Hirst and the Turners. What they need next is an offer or two.

[Enumerate]

quote:Originally posted by J R Ewing
OR, maybe, they got the final proposal from Turners on Wednsday night, gave it consideration and rejected it because:

1. It did not give them all their money back.
2. It was still subject to approval and THEY (not Turners or BNZ) would have to fund the company until that time.
3. All things considered they thought they would get a better and/or more certain return by appointing the recievers, in the knowledge that GH were still interested buyers.[/red]


It is point 3 that is the source of my concern.

- Why issue the "no action" letter until the 20th October? The implication is that the ANZ were supporting efforts to realise a recapitalisation deal.

- However, it looks like ANZ were dealing secretly with GH to gain assurances that if the company was placed in recievership GH would support the asset sales. What are the terms of these secret deals?

DUPLICITY!! They were seen to give the market an assurance that the refinancing deal was being progressed IN GOOD FAITH, by the ANZ. The truth seems to be less flattering to the ANZ.

- The Turner Bros had a complete refinancing deal on the table according to reports

- Recievership will cause massive dislocation and heartache in the small communitities that Feltex operations are conducted in

HEAVY HANDED!! Destroying these financial "ecosystems" - because the ANZ can - and for largely for no other reason has earned the ANZ Bank my deep and abiding contempt.

The ANZ, it seems, did not need to cause this turmoil - according to press reports. Their own press statements do not acknowledge the consequence of their actions.

/disclosure: I have never owned Feltex shares but am outraged that a commercial bank, the ANZ, can act in an obvious double dealing and heavy handed way. I empathise with the shareholders, workers/management, suppliers and clients of Feltex. In the future, my bank will not be the ANZ and my carpet will not be GH.

[cantab]

quote:Originally posted by Enumerate


DUPLICITY!! They were seen to give the market an assurance that the refinancing deal was being progressed IN GOOD FAITH, by the ANZ. The truth seems to be less flattering to the ANZ.

- The Turner Bros had a complete refinancing deal on the table according to reports



"complete financing" - are you sure about that or did the Turners want ANZ to take a haircut?

[Snow Leopard]

Enumerate:
Firstly, it is receiver not reciever.
Secondly, neither you nor I know the details of the goings on.

However consider this, whoever is most willing to buy Feltex as a going concern is probably the most likely to make it work.

regards
Paper Tiger

[Base Trader]

Good ole Turner brothers taking the high ground. It is ANZ who enforced the receievers. However, there option was to continue to bleed cash for the benefit of some positive public relations with the shareholder group.

The effect of appointing the receivers will be to (most importantly) skirt around an angry shareholder group vote. Nice and easy. probably will see shareholder value wuiped out too. Not much hope there.

[sniper]

Saw the interview with Turners on TV1. The deal would have been good for the company, the shareholders, the employees, the suppliers and for NZ. No mention of the bank.

Looks like the Turners wanted ANZ to take a hair-cut and the bank said no.

Simple, isn't it?

[warthog]

The hog would like to raise a few points ...

The Turner brothers, GH and ANZ are all acting in their own interests. They would be fools not to, so this is clear.

Whether the FTX board have acted in the interests of FTX shareholders is a matter for the shareholders to judge. It doesn't look good though.

If the Turners are so concerned about FTX ceasing to be a NZ icon, then let's see their best foot put forward - there is no logical reason why, if their bid trumped GH or others, that the ANZ and/or the receivers would not deal with them.

The ANZ, to be clear, had a very clear motivation to secure the best deal possible for FTX other than receivership, which is the worst-case scenario for the ANZ, so it is silly to speculate that somehow the ANZ has a preference for any third party as the ANZ's interest is primarily - and substantially - concerned with its exposure.

In one sense, the ANZ are just another supplier to FTX, but as the largest supplier, with the most to lose of all parties, it of course negotiates an arrangement with FTX to secure its debt. Suppliers to FTX would need their heads examining if they didn't tighten their relationship with FTX since these it was evident - some time ago - that a storm was brewing. Yes, it is difficult being a small supplier to a large customer, but in the final analysis if the supplier has let themselves become ever-increasingly exposed, then one has to question their business sense. Of course - again - the biggest one was the ANZ, but of course they have the wildcard.

Lastly, the hog doesn't think that anybody here derives any satisfaction from people losing their jobs - yes many of them will be able to get other jobs but losing a job is a huge disruption at best, and a nightmare at worst. The hog wishes all FTX staff good fortune given the uncomfortable situation they find themselves in.

The Feltex Game, cast of players:

The Feltex board - continually morphing gaggle of individuals that collectively appear to have lost the plot very early in the play.

The ANZ - the faceless bankers - patient yet possibly lacking judgement in their willingness to let the game get out of hand and go on for so long.

The Turner Brothers - opportunists looking for a bargain. Know enough about the Kiwi psyche to play it to the maximum advantage. Happy to "save the Kiwi icon" as long as the ANZ and exisiting shareholders take most of the pain.

Godfrey Hirst - opportunists; initially looking to pay ballpark fair price but in latter stages of the game just playing hardball, albeit without the media spin.

Sam McGill - forever remembered as being the CEO out on Safari while trouble brewed on the farm. Possibly unfairly cast as the single point of failure at FTX yet quite possibly out of his depth in running the company. Probably quite a good shot at a large cardboard cutout of a wilderbeast at 1.5m.

[warthog]

quote:Originally posted by sniper


Saw the interview with Turners on TV1. The deal would have been good for the company, the shareholders, the employees, the suppliers and for NZ. No mention of the bank.

Looks like the Turners wanted ANZ to take a hair-cut and the bank said no.

Simple, isn't it?


This would appear to be the case - sometimes it's not what is said, but what isn't said.

The hog noted that the Turners claimed on National Radio this afternoon that they "shook" on a deal with the ANZ.

Anybody who believes that multi-million dollar deals involving a bank are sealed by a handshake are in desperate need of a clue.

[kura]

quote:Originally posted by sniper


Saw the interview with Turners on TV1. The deal would have been good for the company, the shareholders, the employees, the suppliers and for NZ. No mention of the bank.

Looks like the Turners wanted ANZ to take a hair-cut and the bank said no.

Simple, isn't it?

If I were in ANZ shoes, and asked to take a hit on the loans, I would have done the same thing. (Given that enterprise value of bizz, is approx same as outstanding loans) They are a preferential type creditor, so why not appoint a receiver, and let the unsecured trade creditors take the hit, if anyone has to ?

[warthog]

quote:Originally posted by Enumerate

- Why issue the "no action" letter until the 20th October? The implication is that the ANZ were supporting efforts to realise a recapitalisation deal.

Why would one conclude that this isn't the case? If a deal that dealt with the debt was presented, the ANZ would have taken it. It would seem that the ANZ has been supporting FTX for quite some time - some would say too long.


quote:- However, it looks like ANZ were dealing secretly with GH to gain assurances that if the company was placed in recievership GH would support the asset sales.

Pure speculation. The hog is pretty sure that the ANZ was talking to *all* significant parties, which include the Turner brothers.


quote:What are the terms of these secret deals?

Of the non-public discussions? That's easy: no terms, until something watertight is put together. Then it's clearly defined legal terms which would see the light of day.


quote:DUPLICITY!! They were seen to give the market an assurance that the refinancing deal was being progressed IN GOOD FAITH, by the ANZ.

Take it from the hog that the ANZ would have been supporting the progress of all possible deals.


quote:The truth seems to be less flattering to the ANZ.

Mindless speculation - how do you know the truth unless you were party to the non-public discussions. If you know something, the maybe help us all out and pray tell ...


quote:- The Turner Bros had a complete refinancing deal on the table according to reports

Obviously not good enough for the ANZ. "According to reports" could mean you've been consulting the Beagle Brothers.


quote:- Recievership will cause massive dislocation and heartache in the small communitities that Feltex operations are conducted in

More mindless speculation. Wait and see - sometimes, receivership cleans out the cobwebs and leaves a more transparent picture for all.


quote:HEAVY HANDED!! Destroying these financial "ecosystems"

Not necessarily so.


quote:- because the ANZ can

Only because the FTX board signed up with the ANZ. They didn't have to.

[quote]quote:- and for largely for no other reason has earned the ANZ Bank my deep and abiding contempt.</bl

[J R Ewing]

Enumerate,

I think you (and TV1 news) are out of line painting GH and ANZ as the bad guys here. GH is simply a competitor looking to see if it can enhance its own value by buying FTX as cheap as possible - thats the way business works - if you don't like it vote communism next election. GH has no responsibility to maintain FTX as a kiwi icon, keep it in NZ or anything else. In practice however a GH takeover will likely be best result for FTX workers, suppliers, customers etc. But that is not primarily GH concern - they have enough of their own worries i'm sure.

ANZ would obviously grab the first $140 million cheque it was offered - either GH or Turners. Obviously the Tuners "fully funded" offer leaves ANZ seriouly out of pocket or holding some doubtful debt over the restructured FTX (probably subordinate to the BNZ finance arranged by Turners).

The FTX board seemed to think the GH bid was the best chance a few weeks back when the Turners bid first came to light. It looks to me like the value of FTX as a going concern is less than the debt. Seems logical then that if the Turners recapitalisation delivers value to existing holders that value must be coming from ANZ taking a loss on the debt. This is consistent with the Turners offer being "better for NZ, shareholders, suppliers, workers, kiwi icons, BNZ, rural towns and whatever (including the Turners)."

I have no problem with the Tuners offer as such, good on them if they think that their management would turn the company around - I'm sure GH think the same. But the ANZ is obligated to get best result for itself - not to fund the business while the shareholders vote on which option gives them the best chance of a stake in a revitalised FTX.

I reckon the questions should be asked of the guys that floated the company and the board that turned down the GH offer when it stood at 60c.

Also disclose never being a shareholder. I hope I am learning the right lessons nevertheless. As I said a few pages back - this is certainly fertile ground for conspiracy theories.

Aferthought - how does Leila Harre [xx(] get TV time to make allegations about Australians shafting us poor kiwis [}:)]

[Snow Leopard]

The expressions "Red Rag to a bull" and "Leila Harre to a Paper Tiger" are synonymous, so J R, I hold you and my half share of a bottle of Roy's Hill 2005 Merlot (an excelleant value for money gentle red) responsible for the following rant:

Of all the politicians I have ever had the mis-fortune to try and have a rational discussion with this Ex Lisp MP comes second only to the woman in the Briscoes adverts as the person I would most like to punch in the face.
I found it impossible to have any sympathy for an exploited group of NZ workers being ground into the dust by an Oz lead management who had this narrow-minded individual as their leader/spokesperson.
I have rarely met anybody who appears to be so detached from the realities of the real world.

Meanwhile, back on the Feltex thread...

[rmbbrave]

quote:Originally posted by Paper Tiger

Enumerate:
Firstly, it is receiver not reciever.
Secondly, neither you nor I know the details of the goings on.

However consider this, whoever is most willing to buy Feltex as a going concern is probably the most likely to make it work.

regards
Paper Tiger


PT,

You'd better watch out mate, you'll have intellectual giants such as BB accuse you of being pedantic.

[barnsley bill]

quote:Originally posted by rmbbrave


quote:Originally posted by Paper Tiger

Enumerate:
Firstly, it is receiver not reciever.
Secondly, neither you nor I know the details of the goings on.

However consider this, whoever is most willing to buy Feltex as a going concern is probably the most likely to make it work.

regards
Paper Tiger


PT,

You'd better watch out mate, you'll have intellectual giants such as BB accuse you of being pedantic.

no chance of anybody taking your title

[rmbbrave]

ANZ says "We had to destroy the village in order to save it."

ANZ says receivership secures Feltex
22 September 2006

ANZ Bank said today it was securing Feltex's future rather than jeopardising it and the livelihood of its 1400 workers by putting the iconic carpet maker into receivership.

http://www.stuff.co.nz/stuff/0,2106,3805815a10,00.html

[Snow Leopard]

bugger, you beat me to it, BB :)

Meanwhile, back on the Feltex thread...

[Snow Leopard]

quote:Originally posted by rmbbrave

ANZ says "We had to destroy the village in order to save it."

No they didn't.

[rmbbrave]

"In appearance it is very powerful but in reality it is nothing to be afraid of, it is a paper tiger. Outwardly a tiger, it is made of paper, unable to withstand the wind and the rain. I believe the United States is nothing but a paper tiger."

Moa Zedong

[Bling_Bling]

The nerves !! [V][xx(]
Finger pointing and ass covering time.

'We Did Nothing Wrong' - Feltex

Feltex workers will spend a gloomy weekend wondering what their future holds, after receivers were called in on Friday.

Chairman Tim Saunders has revealed Feltex was on the point of rolling out a new line of stain-resistant carpet, when the bank pulled the plug and decided it was not taking up the Turner Brothers' attempt to save the iconic New Zealand company.

The new product has been developed using in-house technology, and he admits it is a disappointment to hand it over to new owners.

He says there is a frustration in the company as it has got potential, and staff believe the underlying value of the business is still there.

Mr Saunders says management are all very proud and did nothing wrong in the way they ran the company. He says the directors are hugely disappointed to be stepping aside at a time when there is real potential in the company.

Mr Saunders believes the bank has acted rashly, and adds that he is concerned for the well-being of Feltex staff.

http://xtramsn.co.nz/businessandmoney/0,,13273-6341852,00.html

[winner69]

Bling bling ... isn't thata sad story ... i almost cried when i heard Saunders say he had a done a great job on the radio this morning ... how unfair of that bank to steal all that value and make good out of it

[Panic E-Button]

What’s about such scenario: ANZ had under-table arrangement with OZ Company about FTX assets and business, so Turners brothers offer didn't fit at first place. ANZ waited until deadline date and regardless appointed receivers to carry on own plan. ANZ may become very unpopular in NZ, if by backing up Ozzie business over NZ interest - come true.

[BRICKS]

quote:Originally posted by Panic E-Button

What’s about such scenario: ANZ had under-table arrangement with OZ Company about FTX assets and business, so Turners brothers offer didn't fit at first place. ANZ waited until deadline date and regardless appointed receivers to carry on own plan. ANZ may become very unpopular in NZ, if by backing up Ozzie business over NZ interest - come true.


THAT`S crap all the banks look after themselves FIRST who do they care which country it is,, THE BANK FIRST so don't borrow MONEY.. [8D]

[hairdresser]

Mr Saunders should be happy to let his results speak for themselves.

Key achievement.
Allowing a company that has averaged over $30m EBITDA per annum for the past 4 years [including 2006] to be placed in recevership.

There is probably no other individual in NZ who could match this amazing feat.

Also the statement Tim made to the press in July clearly demonstrates his judgement and level of strategic thinking.
"The bank wont put us in receivership because they will lose money"

I'm not bagging Tim but his talents are probably better suited to management of a company that has a monopoly position rather than one in a competitive market.

Good luck to everyone who bought yesterday, I was expecting a trading halt to be called in the event of receviership but good on the receivers for allowing the market to operate.

If you have an appetite for risk it could be very profitable, if not it should be intersting to watch events unfold.

[BRICKS]

MIRICAL`S last 3 days this subject will be DEAD after the next 3 trading DAYS.. [8D]

[Heavy Metal]

quote:Originally posted by belgarion

Amazing how many shares you can buy with 10k ...


Talk about incorrigible!

At a closing price of 3c I guess you're now in profit on your FTX holding[?]

When's the Belgarion SSH notice forthcoming[?]

[kura]

quote:Originally posted by BRICKS

p all the banks look after themselves FIRST who do they care which country it is,, THE BANK FIRST so don't borrow MONEY.. [8D]

Quite so, the more people can relate debt to "danger" the better.

Having said that, it would be inappropriate for a bizz to be entirely free of debt, it just wouldn't be efficient capital management. (or a really lousy bizz, ie like my farm) I recall getting into an esoteric debate with some workmates once (while having a beer, one friday afternoon) about what was an appropriate level of debt, given a set of earnings and volatility of earnings, there was no agreement !

[The Doctor]

Tim Saunders is a ..'comedian'..rejected 60c a share offer from GH..and now has the temerity to mention a 'stain resistant carpet'..with huge potential!..do not let your children rob people by violence..dress them in suits...and they can steal millions!

[warthog]

quote:Originally posted by The Doctor

Tim Saunders is a ..'comedian'..rejected 60c a share offer from GH..and now has the temerity to mention a 'stain resistant carpet'..with huge potential!..do not let your children rob people by violence..dress them in suits...and they can steal millions!


The FTX board rejected the initial GH bid, not just Saunders. Boards have collective responsibility.

[cantab]

Looks like a perfectly rational decision was made by the ANZ:

The Press:

BusinessDay understands that ANZ believes it did not agree to anything. The bank, which had called for fully funded offers by 8am on Friday, September 8, did not view the Turners' offer as fully funded or unconditional.

BusinessDay also understands that the Turners' deal could have led to ANZ losing more than $10 million.

Mr Turner said it appeared ANZ was not prepared to fund Feltex's working capital through to a special meeting in late October at which shareholders would have voted on the Turners' proposal, even though the Turners would have reimbursed this if the deal was completed.

Asked if ANZ was nervous that shareholders, whose stakes would have been heavily diluted, would reject the offer, Mr Turner replied: "Yes."

http://www.stuff.co.nz/stuff/0,2106,3806107a13,00.html

[Flying Goat]

quote:Originally posted by warthog

The hog would like to raise a few points ...

The Turner brothers, GH and ANZ are all acting in their own interests. They would be fools not to, so this is clear.

Whether the FTX board have acted in the interests of FTX shareholders is a matter for the shareholders to judge. It doesn't look good though.

If the Turners are so concerned about FTX ceasing to be a NZ icon, then let's see their best foot put forward - there is no logical reason why, if their bid trumped GH or others, that the ANZ and/or the receivers would not deal with them.

The ANZ, to be clear, had a very clear motivation to secure the best deal possible for FTX other than receivership, which is the worst-case scenario for the ANZ, so it is silly to speculate that somehow the ANZ has a preference for any third party as the ANZ's interest is primarily - and substantially - concerned with its exposure.

In one sense, the ANZ are just another supplier to FTX, but as the largest supplier, with the most to lose of all parties, it of course negotiates an arrangement with FTX to secure its debt. Suppliers to FTX would need their heads examining if they didn't tighten their relationship with FTX since these it was evident - some time ago - that a storm was brewing. Yes, it is difficult being a small supplier to a large customer, but in the final analysis if the supplier has let themselves become ever-increasingly exposed, then one has to question their business sense. Of course - again - the biggest one was the ANZ, but of course they have the wildcard.

Lastly, the hog doesn't think that anybody here derives any satisfaction from people losing their jobs - yes many of them will be able to get other jobs but losing a job is a huge disruption at best, and a nightmare at worst. The hog wishes all FTX staff good fortune given the uncomfortable situation they find themselves in.

The Feltex Game, cast of players:

The Feltex board - continually morphing gaggle of individuals that collectively appear to have lost the plot very early in the play.

The ANZ - the faceless bankers - patient yet possibly lacking judgement in their willingness to let the game get out of hand and go on for so long.

The Turner Brothers - opportunists looking for a bargain. Know enough about the Kiwi psyche to play it to the maximum advantage. Happy to "save the Kiwi icon" as long as the ANZ and exisiting shareholders take most of the pain.

Godfrey Hirst - opportunists; initially looking to pay ballpark fair price but in latter stages of the game just playing hardball, albeit without the media spin.

Sam McGill - forever remembered as being the CEO out on Safari while trouble brewed on the farm. Possibly unfairly cast as the single point of failure at FTX yet quite possibly out of his depth in running the company. Probably quite a good shot at a large cardboard cutout of a wilderbeast at 1.5m.


Nice post warthog, good to see a rational, accurate and entertaining description of the key stakeholders... but you missed one group: the shareholders (fortunately I am not one of them)

[warthog]

Good point FG.

FTX Shareholders - group of investors wanting to believe all was well while ignoring the obvious signs of a buisness out of control and in decline. Some will set of in search of somebody to blame, having only read the front of the prospectus, and end up chasing ghosts ...

[Heavy Metal]

So NZX seems to allow trading in insolvent companies. How much longer will trading last for FTX???

Nicol wanted Feltex's shares suspended from the New Zealand stock exchange. The receivers asked for a trading halt on Friday, but said they were told by the NZX that receivership per se wasn't a reason for suspension. Feltex shares plunged from nine cents to three cents. Nicol said they were in discussions with NZX about the situation. "My view is the company is insolvent. How can it therefore be that the shares have value?"

[Snow Leopard]

There is so much finger pointing going on that someone could lose an eye.

[warthog]

Doesn't matter if it's the blind leading the blind now does it?

[cantab]

quote:Originally posted by belgarion

Roaddog - playing here?


His name is Roaddog, not Roadkill. :)

[sniper]

Receiver tells NZX tomorrow that he will not be paying listing fee or registry charges forthwith.

Stock is delisted and it's buy ...buy ...byebye! :(

[barnsley bill]

And then everybodies favourite ftxophile will suddenly realise that his reality check .....has bounced:D

[Heavy Metal]

quote:Originally posted by sniper


Receiver tells NZX tomorrow that he will not be paying listing fee or registry charges forthwith.

Stock is delisted and it's buy ...buy ...byebye! :(


Would not be surprised if this happens, FTX is trading on borrowed time.

[Toddy]

Sounds too bullish to be true.

REL: 0900 HRS Feltex Carpets Limited

GENERAL: FTX: McGrathNicol+Partners wish to provide an update

24 SEPTEMBER 2006 NZX ANNOUNCEMENT AND MEDIA RELEASE

Feltex Carpets Limited (Receivers and Managers Appointed) ("Feltex")
Receivership update

McGrathNicol+Partners wish to provide an update on the receivership of
Feltex.

Pleasing progress has been made in maintaining normal production and trading
operations. It is "business as usual". Colin Nicol, Receiver and Manager,
said:
Staff

o The Receivers and Managers ("Receivers") have obtained the cooperation and
support of Feltex's employees. Employees have been briefed on the Receivers'
plans, which are to maintain business continuity and to complete a going
concern sale or recapitalisation of Feltex.

o The Receivers are committed to maintaining the confidence of employees in
their ongoing employment under their current terms and conditions.

o A process to keep unions and employees informed and involved has been
established. We wish to thank employees and their unions for their commitment
during this difficult process. We are committed to doing our best to secure
their long-term future.

Suppliers

o The support of key suppliers has also been established. Goods and services
purchased by the Receivers are assured of payment. The uncertainty which has
affected Feltex's supply chain in recent months has now been eliminated.

Customers

o The support of key customers is being reinforced. Arrangements are being
put in place to assure customers of warranty support.

Going concern sale

o The Receivers are actively pursuing a sale or recapitalisation of Feltex as
a going concern.

o We have received formal expressions of interest from the Turner consortium
and from Godfrey Hirst. Both of those parties have been invited to submit
binding offers to acquire or recapitalise Feltex. We have also received
enquiries from other parties.

o McGrathNicol+Partners anticipate that Feltex will be sold or recapitalised
as a going concern. We do not foresee the break up or liquidation of the
business. It is anticipated that strong new owners will be in place from
November. Feltex's strong brands and quality are highly sought after.

Feltex board

o A new chain of command has been established in management. The Board of
Directors no longer has authority to control the business. Peter Thomas is no
longer the CEO. Financial reporting and control is under the supervision of
the Receivers.

o We note that recent efforts to secure a sale or recapitalisation made
significant progress but did not reach a satisfactory conclusion. The failure
to secure a sale or recapitalisation, coupled with Feltex's substantial
losses and mounting cash requirements, led to our appointment.

o It is clear from the documentation we have reviewed that it was not
possible to secure a sale or recapitalisation except on terms which would
have required a significant debt write-off by the ANZ bank. This does not
appear to have been disclosed by Feltex.

o We note that some of the proposals received by Feltex which we have
examined carried high risk of non-completion, lacked enforceable financial
commitments from key stakeholders, and/or involved proposals with adverse
legal or reputation risks.

The Receivers are focusing on maintaining stable business operations and
underpinning the long-term future for Feltex and its employees, suppliers and
customers. There are excellent prospects for a successful conclusion.

We shall keep stakeholders informed of our progress during the conduct of the
Receivership and wish to thank Feltex's employees, unions, suppliers and
customers for their support.

[minimoke]

Bang - in a couple of days the recievers can achieve what should have been done long ago:

"A new chain of command has been established in management. The Board of Directors no longer has authority to control the business. Peter Thomas is no longer the CEO. Financial reporting and control is under the supervision of the Receivers."

Hopefully no golden handshakes are involved.

[warthog]

quote:Originally posted by Toddy

Sounds too bullish to be true.

REL: 0900 HRS Feltex Carpets Limited

GENERAL: FTX: McGrathNicol+Partners wish to provide an update

...

We shall keep stakeholders informed of our progress during the conduct of the
Receivership and wish to thank Feltex's employees, unions, suppliers and
customers for their support.

Not so hard to keep stakeholders informed is it?

[warthog]

quote:Originally posted by minimoke

Hopefully no golden handshakes are involved.

No gold, no handshake.

[minimoke]

And no trading today!

[Toddy]

Continuing to do it the hard way!


HALT: FTX: FTX - Suspension of Trading in Securities

NZX Regulation Announcement
Feltex Carpets Limited (FTX)
Suspension of Trading in Securities

NZX Regulation advises that trading in Feltex Carpets Limited (FTX)
securities has been suspended under Listing Rule 5.4.2, effective
immediately.

The receiver of FTX applied for a trading halt in FTX securities just prior
to market closure on Friday afternoon. NZX does not consider that
receivership, in and of itself, is sufficient grounds for a trading halt to
be applied. However, in this instance the receiver has confirmed that it
will not be paying FTX's share registrar, who has therefore suspended FTX
registry functions with the effect that settlement of trades in FTX
securities cannot be effected. Because of this, NZX has no choice but to
suspend FTX securities until such time as trades are able to be settled.

[Heavy Metal]

quote:Originally posted by Toddy

Continuing to do it the hard way!


HALT: FTX: FTX - Suspension of Trading in Securities

NZX Regulation Announcement
Feltex Carpets Limited (FTX)
Suspension of Trading in Securities

NZX Regulation advises that trading in Feltex Carpets Limited (FTX)
securities has been suspended under Listing Rule 5.4.2, effective
immediately.

The receiver of FTX applied for a trading halt in FTX securities just prior
to market closure on Friday afternoon. NZX does not consider that
receivership, in and of itself, is sufficient grounds for a trading halt to
be applied. However, in this instance the receiver has confirmed that it
will not be paying FTX's share registrar, who has therefore suspended FTX
registry functions with the effect that settlement of trades in FTX
securities cannot be effected. Because of this, NZX has no choice but to
suspend FTX securities until such time as trades are able to be settled.



Well picked Sniper. The NZX is an absolute disgrace for allowing FTX to be traded on Friday and those who bought on Friday thinking they were getting a bargain need their heads read.

[Stranger_Danger]

I have a question.

I bought Feltex shares at 1 cent on Friday after reading about it from this thread.

I see there are buyers at 5 cents so want to cash out my 4 bagger.

With the receiver not wanting to pay the registry fees, is there another way?

Also, I want to say thanks to Belg - 1 cent to 5 cents is the biggest gain I've had - great tip!

[trendy]

No worries stranger_danger. I'll happily buy them 'off market' at 0.0000001 cent per share. :)

[Heavy Metal]

quote:Originally posted by Stranger_Danger

Also, I want to say thanks to Belg - 1 cent to 5 cents is the biggest gain I've had - great tip!


Well done on your paper gain!

[Snow Leopard]

If you were really foolish enough to 'buy' shares on Friday you may well find that your trades are reversed as the registrar will not process them.

Talk to your broker.

[J R Ewing]

So having allowed trading on Friday the exchange is now unwilling to process those trades and will therefore unwind them retrospectively [?][}:)][?]

That would be one of the weirdest plot twists yet in this soap opera:D:D:D:D

[BRICKS]

quote:Originally posted by Paper Tiger

If you were really foolish enough to 'buy' shares on Friday you may well find that your trades are reversed as the registrar will not process them.

Talk to your broker.


CRAP.. [8D]

[trackers]

quote:Originally posted by trendy

No worries stranger_danger. I'll happily buy them 'off market' at 0.0000001 cent per share. :)


Thats generous...seriously :D

[Snow Leopard]

Bricks is that CRAP as in you believe what I said is wrong, or CRAP as in I am right and you were a buyer/seller on Friday?

[whatsup]

Is there any truth in the rumour/fact that an Aussie bank -ANZ, has appointed a Aussie receiver to off the bones of Feltex to GH at "mates" rates???

[BRICKS]

quote:Originally posted by Paper Tiger

Bricks is that CRAP as in you believe what I said is wrong, or CRAP as in I am right and you were a buyer/seller on Friday?


MORE CRAP.. [8D]

[J R Ewing]

quote:Originally posted by whatsup

Is there any truth in the rumour/fact that an Aussie bank -ANZ, has appointed a Aussie receiver to off the bones of Feltex to GH at "mates" rates???


Yeah, I heard this one too :D Sounds like ANZ are going to get the reciever to sell FTX to GH for MILLIONS less than they would get from the Turners. The powers in control at ANZ don't care that the bank will take a multi-million dollar hit on the debt - cos their mates in charge of GH are giving them a big wad of cash under the table. [V]

These Australians are right b******s.


Warning: This post may contain traces of sarcasm and bull**** ;)

[BRICKS]

quote:Originally posted by J R Ewing


quote:Originally posted by whatsup

Is there any truth in the rumour/fact that an Aussie bank -ANZ, has appointed a Aussie receiver to off the bones of Feltex to GH at "mates" rates???


Yeah, I heard this one too :D Sounds like ANZ are going to get the reciever to sell FTX to GH for MILLIONS less than they would get from the Turners. The powers in control at ANZ don't care that the bank will take a multi-million dollar hit on the debt - cos their mates in charge of GH are giving them a big wad of cash under the table. [V]

These Australians are right b******s.


Warning: This post may contain traces of sarcasm and bull**** ;)


YET another small time KIWI.. [8D]

[warthog]

quote:Originally posted by Paper Tiger

Bricks is that CRAP as in you believe what I said is wrong, or CRAP as in I am right and you were a buyer/seller on Friday?


You're asking the wrong person PT - BRICKS doesn't care as BRICKS knows what BRICKS means.

[BRICKS]

quote:Originally posted by warthog


quote:Originally posted by Paper Tiger

Bricks is that CRAP as in you believe what I said is wrong, or CRAP as in I am right and you were a buyer/seller on Friday?


You're asking the wrong person PT - BRICKS doesn't care as BRICKS knows what BRICKS means.


WHERE you been CHEATING HOG avoiding the truth about yourself and writing those stupid statements that is your version of advents that don't HAPPEN .. [8D]

[warthog]

Here goes ...

THE HOG has been WALLOWING in cool pleasant surroundings WHILE enjoying EVENTS which will come to PASS in the fullness OF TIME .. that's WEAR BRICKS where's YOU'RE REPLY? ..[8D]

P.S. the WHEREABLE arts awards might see some WHEREING BRICKS but somehow not suspect TOO CLUNKY.
P.P.S no ADVENT calendars to be seen at the HOGHOUSE

[BRICKS]

quote:Originally posted by warthog

Here goes ...

THE HOG has been WALLOWING in cool pleasant surroundings WHILE enjoying EVENTS which will come to PASS in the fullness OF TIME .. that's WEAR BRICKS where's YOU'RE REPLY? ..[8D]

P.S. the WHEREABLE arts awards might see some WHEREING BRICKS but somehow not suspect TOO CLUNKY.
P.P.S no ADVENT calendars to be seen at the HOGHOUSE


ALL cheats lie and doing very WELL.. [8D]

[BRICKS]

THIS is DAY 1 of 3 of the post miracle of the demise of FTX thence the CRAP cometh FORTH.. [8D]

[sniper]

quote:Originally posted by Stranger_Danger

I have a question.

I bought Feltex shares at 1 cent on Friday after reading about it from this thread.

I see there are buyers at 5 cents so want to cash out my 4 bagger.

With the receiver not wanting to pay the registry fees, is there another way?

Also, I want to say thanks to Belg - 1 cent to 5 cents is the biggest gain I've had - great tip!


I see there are sellers there at 3 cents so I must be able to buy them at 3 cents and sell at 5 cents.

Fools and their money ....[8D]

[BRICKS]

quote:Originally posted by sniper


quote:Originally posted by Stranger_Danger

I have a question.

I bought Feltex shares at 1 cent on Friday after reading about it from this thread.

I see there are buyers at 5 cents so want to cash out my 4 bagger.

With the receiver not wanting to pay the registry fees, is there another way?

Also, I want to say thanks to Belg - 1 cent to 5 cents is the biggest gain I've had - great tip!


I see there are sellers there at 3 cents so I must be able to buy them at 3 cents and sell at 5 cents.

Fools and their money ....[8D]


A sniper your right another KIWI dill.. [8D]

[OneUp]

quote:Originally posted by Stranger_Danger

I have a question.

I bought Feltex shares at 1 cent on Friday after reading about it from this thread.

I see there are buyers at 5 cents so want to cash out my 4 bagger.

With the receiver not wanting to pay the registry fees, is there another way?

Also, I want to say thanks to Belg - 1 cent to 5 cents is the biggest gain I've had - great tip!


Whatever money you put in is lost. You can thank Belg for the 'great tip' of a negative one bagger.

What beggars belief is that people were actually prepared to buy FTX shares on Friday. The bank will get its money, unsecured creditors will probably get something back but there will 99.9% likely be nothing at all left for shareholders.

[J R Ewing]

Oneup,

Is it not possible that the reciever will elect to accept the Turners offer to recapiltalise the business via a rights issue. In that event maybe there is some upside to buying shares at 1c to 3c on Friday. That is what the buyers were hoping for I suppose. I guess that where you have 2 interested parties maybe the final sale price will be a pleasant surprise for those owed money.

On the whole though I agree with your assessment of 99.9% likelihood that these shares will finish at 0.0c

[warthog]

The ANZ has been hurting for some time, and their position isn't one that you'd like to find yourself in.

One can't but conclude that the period of hurt indicates that there will be nothing left.

After all, it is not up to the bank to decide whether or not the board uses up every last scrap of capital in the company - the bank is just interested in securing its exposure.

If the receivership was earlier - i.e. the board had decided to put the company into receivership - then there might have been something left in the pot after surgery.

There is a very small chance that the receiver will be able to do a phenomenally better job than the previous board given the current situation.

[metro]

quote:Originally posted by Sky Tower

I was also "lucky" enough to get an allocation. Got out at $1.69, fe;lt bit miserable at the time. Doesn't seem so bad now.

Everyone thought I was crazy getting out at that level - they said I should hold for the long term


Now they are 0.03 and suspended from the NZX then $1.69 doesn't now seem that bad :D

[BRICKS]

DAY 2 of 3 ..[8D]

[Sideshow Bob]

quote:Originally posted by BRICKS


quote:Originally posted by sniper


quote:Originally posted by Stranger_Danger

I have a question.

I bought Feltex shares at 1 cent on Friday after reading about it from this thread.

I see there are buyers at 5 cents so want to cash out my 4 bagger.

With the receiver not wanting to pay the registry fees, is there another way?

Also, I want to say thanks to Belg - 1 cent to 5 cents is the biggest gain I've had - great tip!


I see there are sellers there at 3 cents so I must be able to buy them at 3 cents and sell at 5 cents.

Fools and their money ....[8D]


A sniper your right another KIWI dill.. [8D]


Great work Bricks! After that cutting comment, Sniper has run off with his tail between his legs, and not posted on this thread since!

[DCski13]

Gidday, after being pounded by Labour and Telecom then running into FTX while looking for a recovery (and not having followed the tread for long awhile). What did FTX in, outside of the capital merchants pulling their pound of flesh, is Labour cause they hate business. In my perfect world, when I get into Parliament next session, FTX would have been nationalised temporarily then flicked back to the Moms and Pops with the likes of Turner et al running the show [remember, we're not selling carpet but coverings]. F the Aussies/ANZ. [the only good the Aussie's will be for are shock troops for when the Muslims pour over the boarder but, hey, they're already here! thanks to Labour:D]

[DCski13]

Hey, my birthday - long over celabrated - is coming up on the 29th. Anyone want to join in drowning their sorrows at McGraths or Vivo that night?

[BRICKS]

quote:Originally posted by DCski13

Hey, my birthday - long over celabrated - is coming up on the 29th. Anyone want to join in drowning their sorrows at McGraths or Vivo that night?


NO.. [8D]

[metro]

Does Snipers broker/employer actually know he is continually posting on this site?? Or should I just phone Scott now ? :D


quote:Originally posted by Heavy Metal


quote:Originally posted by Jolly

Sniper? Just too clever by half. Can see his game plan a mile off. Dressing it up as "advice". Wasn't saying that at float time though.


To think that Sniper's broker employer allows him to post hundreds of messages to a website ramping/bagging certain shares is astonishing, particularly given potential conflicts in interest. Their IT/security policy must be really really lax.

[Heavy Metal]

quote:Originally posted by Sideshow Bob

Great work Bricks! After that cutting comment, Sniper has run off with his tail between his legs, and not posted on this thread since!


Naah mate, Sniper is busy preparing his defence for the up and coming class action. Sniper was ramping the FTX IPO to the hilt and the chickens may be coming home to roost now. There are 9000 investors pretty pissed off at the likes of Sniper and his ilk.

http://www.stuff.co.nz/stuff/0,2106,3808719a13,00.html

Kiwis 'sold a pup' in Feltex float
26 September 2006
By ANDREW JANES

The shareholder activist organising a class action on behalf of Feltex shareholders has accused Credit Suisse First Boston Asian Merchant Partners of "selling a pup" to mum and dad investors who bought shares in the carpet maker when it floated on the stockmarket.

SNIP

Possible litigation targets included Feltex's directors, its auditors, CS First Boston, First NZ Capital and Forsyth Barr – the two organising brokers – as well as individual brokers who recommended it to investors – "all of the people on the back cover of the prospectus", Mr Gavigan said.

"The evidence is from looking at the share registry records that a large number of the mum and dad investors were captive or passive clients of firms like Forsyth Barr."

[barnsley bill]

who is the "shareholder activist"?

[COLIN]

quote:Originally posted by barnsley bill

who is the "shareholder activist"?

As the article says, Tony Gavigan, of Southern Petroleum fame.

[barnsley bill]

quote:Originally posted by COLIN


quote:Originally posted by barnsley bill

who is the "shareholder activist"?

As the article says, Tony Gavigan, of Southern Petroleum fame.

did not read it sorry. thanks

[BRICKS]

THIS is day 3 of 3 so get all your moans in and get it off the chest and then shut UP.. [8D]

[Snow Leopard]

from Doubts over Feltex float audit (http://www.stuff.co.nz/stuff/0,2106,3810882a13,00.html)

Meanwhile, Feltex's receiver, McGrath Nicol & Partners, has set a deadline of 5pm tomorrow Australian time for buyers to bid for the Feltex assets.

The receiver recognised the importance of moving quickly to preserve the value of the business and had outlined terms and conditions for making an offer for the business and assets, receiver Colin Nicol said.

The Independent Financial Review reported that there was a third bidder – in addition to Australian carpet company Godfrey Hirst and the Turner brothers – looking at Feltex.

It was a serious New Zealand player, the IFR reported.

Listed carpet maker Cavalier would not say if it was interested.

[Snow Leopard]

Godfrey Hirst makes unconditional Feltex offer (http://www.stuff.co.nz/stuff/0,2106,3813295a13,00.html)

Australian carpet maker Godfrey Hirst has made an unconditional offer for New Zealand-based rival Feltex Carpets, the company's receivers said today.


Godfrey Hirst wants to buy Feltex as a going concern, including its assets and undertakings in New Zealand, Australia and the USA.

Receivers McGrathNicol and Partners are expected to announce further details in a few days.

The receivers also said Feltex's operations were continuing well with the support of employees, unions and suppliers.

However, they said there was evidence that customer support was "at risk" if a credible new owner was not found quickly.

This was particularly so in Australia, which accounts for the majority of Feltex's revenue.

The High Court has also given McGrathNicol an extension to the usual period for giving staff termination notices.

Receivers are usually obliged to give staff notice within 14 days of appointment but in the case of Feltex, they have been given a 60-day extension.

McGrathNicol said this reinforced the "business as usual" strategy, but did not apply to Australian operations which were also continuing uninterrupted.

Meanwhile, the consortium led by Sleepyhead principals Graeme and Craig Turner issued a statement saying they would not be putting an offer to the receivers.

They said Feltex's bankers were aware that the consortium was unlikely to buy the business under receivership because of the "significant damage" that a receivership could do to Feltex's value, reputation and business relationships.

It was unable to assess the impact on the company's value in these circumstances, the brothers said.

"We always understood that other bidders, who are competitors of Feltex, may well be able to accept these risks because they are less reliant upon Feltex remaining fully intact as a going concern."

[winner69]

So Godfrey Hirst have made an unconditional offer for Feltex apparently as a going concern, indicating ANZ might be paid in full which means shareholders zilch

Press says Turners offer required ANZ to write off more than half the debt it was owed .... they must have been dreamming ..... national pride has no value to bankers

That was the offer that the feltex board endorsed ....oh dear ... but gladly this might be all over.

Still think that Turners were opportunisic .... no trouble with that .... might have got something on the cheap .... but playing the game in the public arena could backfire on the Sleepyhead boys.

[BRICKS]

quote:Originally posted by winner69

So Godfrey Hirst have made an unconditional offer for Feltex apparently as a going concern, indicating ANZ might be paid in full which means shareholders zilch

Press says Turners offer required ANZ to write off more than half the debt it was owed .... they must have been dreamming ..... national pride has no value to bankers

That was the offer that the feltex board endorsed ....oh dear ... but gladly this might be all over.

Still think that Turners were opportunisic .... no trouble with that .... might have got something on the cheap .... but playing the game in the public arena could backfire on the Sleepyhead boys.




BUT for the KIWI holders its all OVER including the SHOUTING.. [8D]

[hairdresser]

Well done Godfey Hirst. They have got a bargain. Pity you cant buy shares in them.

Bad "luck" for the shareholders but we know the high risks we take when we go for a turnaround.

As for the initial investors the directors approved a dividend payout of $22m to shareholders on the basis of overinflated sales forecasts probably to satisfy float expectations.

May be a good time to buy CAV as they should benefit from a return to orderly competition in the Australasian carpet market as average selling price and margins improve over the next few years.

[BRICKS]

quote:Originally posted by hairdresser

Well done Godfey Hirst. They have got a bargain. Pity you cant buy shares in them.

Bad "luck" for the shareholders but we know the high risks we take when we go for a turnaround.

As for the initial investors the directors approved a dividend payout of $22m to shareholders on the basis of overinflated sales forecasts probably to satisfy float expectations.

May be a good time to buy CAV as they should benefit from a return to orderly competition in the Australasian carpet market as average selling price and margins improve over the next few years.


THERE is already to much carpet in this WORLD.. [8D]

[hairdresser]

There are also too many sheep and not enough oil ie the raw material for synthetic carpet). There may also be a lot less carpet manufacturing occuring in Austrlalasia in 6 months as GH removes excess maunufacturing capacity.

Industry profitability in markets with duopoloy competetion is far great than markets with 3 competitors.

[BRICKS]

quote:Originally posted by hairdresser

There are also too many sheep and not enough oil ie the raw material for synthetic carpet). There may also be a lot less carpet manufacturing occuring in Austrlalasia in 6 months as GH removes excess maunufacturing capacity.

Industry profitability in markets with duopoloy competition is far great than markets with 3 competitors.


A GOOD way of saying FTX has gone broke you or to throw in as well there are to many car MAKERS in the WORLD.. [8D]

[metro]

I still wish to ***** about FTX, Credit Suisse aka First NZ Capital, Forsooth Boore et al and how they screwed sooo many small investors. Its after Day 3....can I, can I now ??

[kura]

quote:Originally posted by metro

I still wish to ***** about FTX, Credit Suisse aka First NZ Capital, Forsooth Boore et al and how they screwed sooo many small investors. Its after Day 3....can I, can I now ??

Have you considered that those esteemed organisations were merely doing their job, a job that they happened to be particularly good at doing ? Did they hold a gun to the punters heads, telling them they "must" buy FTX or else ?

[Snow Leopard]

metro: feel free to ***** about FTX.
We all want to find out what ***** actually is. :)

[warthog]

***** is both a verb and a noun.

BRICKS version: **** is both a "doing word" and a "naming word".

[kura]

Have to dissagree PT, in this case I would put ***** in the "don't really want to know" category, as there are many such things in life that will lead to undue complications once you are aware of the finer details. (ie: like learning how to iron clothes)

[BRICKS]

quote:Originally posted by warthog

***** is both a verb and a noun.

BRICKS version: **** is both a "doing word" and a "naming word".


Dear Dirty HOG & Cheat you said FAREWELL so keep your Dirty WORD..[8D]

[Lawso]

quote:A GOOD way of saying FTX has gone broke you or to throw in as well there are to many car MAKERS in the WORLD.
(my italics)
Bricks stretches even further the bounds of language creativity.

[BRICKS]

quote:Originally posted by Lawso


quote:A GOOD way of saying FTX has gone broke you or to throw in as well there are to many car MAKERS in the WORLD.
([my] should read LAWSO italics)
Bricks stretches even further the bounds of language creativity.


LAWSO,, To print in italics; emphasize.. So whats wrong with THAT.. [8D]

[BRICKS]

KNOW a KIWI who lost $15,000 now sits the pub crying in his beer saying all the things he could have done with the cash but wiped out
BAD LUCK.. [8D]

[warthog]

quote:Originally posted by BRICKS


quote:Originally posted by warthog

***** is both a verb and a noun.

BRICKS version: **** is both a "doing word" and a "naming word".


Dear Dirty HOG & Cheat you said FAREWELL so keep your Dirty WORD..[8D]


Hook, line, sinker. Woo hoo!

Farewell indeed BRICKS.

[BRICKS]

quote:Originally posted by warthog


quote:Originally posted by BRICKS


quote:Originally posted by warthog

***** is both a verb and a noun.

BRICKS version: **** is both a "doing word" and a "naming word".


Dear Dirty HOG & Cheat you said FAREWELL so keep your Dirty WORD..[8D]


Hook, line, sinker. Woo hoo!
"Farewell"
indeed BRICKS.


ITS hard to get RID of HOG`s.. [8D]

[kura]

GH get FTX, and bank paid in full, I assume only loosers will be unsecured creditors & shareholders. (plus a few staff)

No wonder bank didn't think much of the Turners deal.

[Snow Leopard]

from Receivership update (http://stocknessmonster.com/news-item?S=FTX&E=NZSE&N=137837)
"The purchase price for Feltex is sufficient to repay its existing bank facilities."

Coincidence? may-be.

[kura]

When you think that prior GH offer was for bank debt, plus a possible 12 cents for shareholders, the offer to recievers was essentially the same, just leaving out the possible 12 cents.

Shareholders now have Turners to thank for eliminating the last little value of FTX shares, and also due credit to GH, they would make dam fine poker players.

[biker]

Well done Godfrey Hirst.Beautifully played.
A sublime exposure of the arrogant, incompetent Feltex Board and CEO.
There must be a huge sense of satisfaction in the Godfrey Hirst camp tonight.
Good luck to them and congratulations.

[BRICKS]

SOMEONE always wins and its never the shareholders because they have lost control as soon as the company is BROKE.. [8D]

[warthog]

The shareholders never had control of FTX really, and it appears that the board had little more control than the shareholders.

So, everybody outfoxed by GH.

[cantab]

Yes, congratulations to GH, beautifully played....and great news for ANZ shareholders too. It has been a very entertaining two years right up there with Mr Bean and Benny Hill.

[kura]

quote:Originally posted by belgarion

Who is GH's bank again?

Think you are a little unfair, to bank here Belg
Turners proposal involved "significant write down" (to quote receivers) whereas GH offer means bank is paid out in full.

Putting yourself in banks shoes, would you prefer a significant write down, or a full payout ?

[cantab]

Noone likes to see anyone lose money so one has to feel for trade suppliers and Ma and Pa shareholders. If it wasn't for the support of ANZ, Feltex would have (and should have) gone down the plughole some time ago. Some Kiwis are incredibly naive to think that ANZ was going take a haircut, being conditional on a shareholder vote, while the debt kept rising. Depositors, shareholders and governments expect and demand that banks will lend in a prudent manner.

Find someone else to blame.

[John Mexted]

quote:Originally posted by belgarion

Who is GH's bank again?


I agree with Kura here. It's disingenuos to play that card Belgarion and you well know it.

ANZ had two options:

1. Paid in full.
2. Paid in part.

Only the delusional would expect the bank to choose number two.

I can't believe the bank is apportioned blame here. Save it for the board. They are the architects of this dogs breakfast

[metro]

And Belgarion lost how much money on FTX ????

[Halebop]

quote:Originally posted by metro

And Belgarion lost how much money on FTX ????


Touche

[sekrub]

At last we haven't seen Mark Weldon on television, as he was a few
weeks ago, with a cheerful grin saying if investors had bought
Pumpkin Patch at the same time as Feltex, they'd still be ahead.

Aw yeah, good one Mark, wish we'd known in advance.

[Lizard]

quote:Originally posted by sekrub

At last we haven't seen Mark Weldon on television, as he was a few
weeks ago, with a cheerful grin saying if investors had bought
Pumpkin Patch at the same time as Feltex, they'd still be ahead.

Aw yeah, good one Mark, wish we'd known in advance.


Of course, it was considerably easier to get a share of FTX than to lay your hands on an allocation of PPL...

[thestorm]

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]

[BRICKS]

quote:Originally posted by thestorm

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]


AS your NEW to the GAME give up now and BUY some BOOKS.. [8D]

[thestorm]

quote:Originally posted by BRICKS


quote:Originally posted by thestorm

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]


AS your NEW to the GAME give up now and BUY some BOOKS.. [8D]


Are you trying to be a smart*ss?!:(

[kura]

This is a bit scarry, but I have to agree with Bricks, you need to put in more time with research, if you find the prospect of analyzing a companies financials too daunting, then stick to following chart trends, that would have got you out of FTX with a relatively minor loss of capital.

[thestorm]

Bricks, how about going and insulting someone else. Leave me alone.

[Snow Leopard]

quote:Originally posted by thestorm

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]

The company has not been saved.
"Godfrey Hirst will acquire all of Feltex's assets and operations in
Australia, New Zealand and the USA as a going concern"
Feltex, the company, will have no assets, no ongoing business, probably a few debts and will almost certainly be wound up.

[Mick100]

quote:Originally posted by kura

This is a bit scarry, but I have to agree with Bricks,


My thoughts exactly :D

,

[cantab]

quote:Originally posted by thestorm

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]


My suggestion - as a general rule invest in property and the ASX.

[rawdata]

Follow Cantab's advice and you would have missed out on

Pumpkin Patch,

Rakon,

Delegats,

Freightways,

Mainfreight,

Ryman,

Metlife,

Auckland Airport,

Contact Energy,

Trustpower,

Sky TV,

NZX,

great turnaround stories like

Tower,

Wrightson,

Warehouse and

Fletcher Building.

Then there's the takeovers of

Montana,

Frucor,

Vertex,

Ports of Auckland,

Capital Properties,

Natural Gas,

Powerco etc.

Lots of money to be made - you need to be in the right stocks.

[thestorm]

Ah Montana - you will live long in my memory!

[cantab]

Rawdata, I suspect you are a broker?, there will always be exceptions and I agree there are some great NZ listed only companies, however some of the companies you mention would have initially been a disaster for some. Dual listed ASX stocks - never saw an issue with those, eg Fletcher Building or ANZ.

Still need to do homework though especially on the management.

The Feltex debacle IMO reflects poorly on the NZ market. I don't need to spell it out to you what the issues were over a two year period. The fact is that Feltex and Access do damage.

My perception of The ASX is more regulated, more enforcement and tougher penalties, better disclosure - for example take a look at the published detail of a year end profit announcement on any ASX company compared with any NZX listed company. How can one make reasoned, prompt decisions based on the brief announcements we receive on the NZX? unless one is a broker and has rapid access to that info. It's also far easier to do research on an Aussie company compared with a NZ company.

There are other advantages of investing on the ASX as compared with the NZX, no need to spell these out.

Talking [u]generally</u> here.

[SEC]

quote:Originally posted by cantab

Rawdata, I suspect you are a broker


Well picked Cantab.

Welcome back Sniper:D

[cantab]

...and I should have said (IMO) property beats the sharemarkets hands down as a lower risk way to generate a retirement income using the banks' money. Some might say that is because I'm not a very good sharemarket investor and they'd probably be right. Rawdata, I'm sure you are way more astute than me when it comes to the markets. The property market suits me because it is idiot-proof, plus I'm in control.

[Halebop]

quote:Originally posted by cantab

...The property market suits me because it is idiot-proof, plus I'm in control.

Idiot proof and in control? We've had a few small corrections in real estate over the last 19 years but nothing that can be called a crash. Few Baby Boomers can even remember what a property crash is and those that can might be excused for forgetting. When people quote the "fail safety" of their investments it's like a claxon horn to my risk antenna.

Property fundamentals are driven by economic growth, demographics, interest rates and productivity growth. While the illusion of control (Perhaps its something to do with being able to see, touch and smell your property?) is beguiling, I'm yet to see a government or reserve bank in control of those factors let alone a property investor.

[Base Trader]

This is getting a bit off topic. But I think "The Storm"'s comments are good. While hardly showing insight into sharetrading it does probably shed some light on the marketing that was undertaken to get this float up.

I mentioned earlier in the thread that myself and also my Mum were approached to buy FTX. With that style of approach you would expect that more than a few non-analysing investors would be caught.

I wonder if the brokers pitch started with "We have an opportunity for all you NZ Mums and Dads to pick up shares in the FTX IPO because the Investment Community has spurned this issue and we have no where else to place them...."

[kura]

quote:Originally posted by thestorm

Ah Montana - you will live long in my memory!

Once upon a time Montana was also on the brink of receivership, do you make a habit of punting on high risk/reward recovery plays ? If so, why complain when one of these plays turns to custard ?

[BRICKS]

quote:Originally posted by thestorm


quote:Originally posted by BRICKS


quote:Originally posted by thestorm

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]


AS your NEW to the GAME give up now and BUY some BOOKS.. [8D]


Are you trying to be a smart*ss?!:(


WELL the way you write you are WET behind the EARS.. [8D]

[minimoke]

For $142 what would GH have got. Speculative figures only!

Assets
$0 cash
$55m in trade receivables ($53.7 m last year - probably up since some of the debt seems to have helped fund some customer activity)
$80m Inventories. (they reckon they were working to reduce but factories were still working hard)
$1m other receivables
$10m Future Income tax benefit not realised
$50m Property (no idea really after the Australian sales and increase in land values of remaining property over past year
$2 Investments (perhaps there are some left)
$5m goodwill (last year it was $28m but they wrote off $32 this year – a bit odd. There must be some value there somewhere. Receivers say the support of key customers is being reinforced. New carpet range being launched. Took out a competitor)

Assets = $203m

Liabilities
$142 ANZ
$5m Trade Creditors (got to be pretty small as they have been very quiet and current debt was used to keep them happy)
$18m provisions

Liabilities $165m

Net Assets $38m?

[winner69]

so you hsnging out for a 25 cent payout after the cleanout?

But according to the paper this morning creditors stand to lose quite a bit
http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10404389

[minimoke]

quote:Originally posted by winner69

so you hsnging out for a 25 cent payout after the cleanout?

But according to the paper this morning creditors stand to lose quite a bit
http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10404389

Looks like I was a couple of mil out with the Creditors – but this is offset with ANZ overstatement. I’ll edit once a few more ideas on final figures are presented. Of course, since GH aren't taking on the other liabilities (Creditors and Provisions) but it appears all the assets they are in an even better position.

[hairdresser]

GH have got a bargain. Ending the FTX discounting will be worth around $20m pa alone in GM for Godfrey Hirst. More than enough to pay the interest expense on thier new ANZ loan to pay for the FTX assets.

The other beneficiaries will be CAV, even with the building slump in AUS you can expect a GM improvement of $5-$10m flowing through to NPBT. They may also pick up some market share as well.

[thestorm]

quote:Originally posted by kura


quote:Originally posted by thestorm

Ah Montana - you will live long in my memory!

Once upon a time Montana was also on the brink of receivership, do you make a habit of punting on high risk/reward recovery plays ? If so, why complain when one of these plays turns to custard ?


I doubt that Montana was ever on the brink of receivership. Could you please supply some evidence to back up your statement.

Thanks

[Halebop]

quote:Originally posted by thestorm

I doubt that Montana was ever on the brink of receivership. Could you please supply some evidence to back up your statement.

Suspect maybe you weren't familiar with Montana's predecessor Stormie?

...when the holding company was called Corporate Investments. They tried to build themselves out of a property hole on the Gold Coast and created a A$100m+ development nightmare instead. The cost of servicing that debt put considerable strain on the company. The cash flows of Montana and Truck Investments and sale of several smaller businesses saved them but the share price plunged to pennies. While they later became very successful and re-badged as Montana, their life as an investment company probably hindered rather than aided the wine business.

[moimoi]

personally i think current shareholders of FTX have a right to know the sum that "their" assets have been sold for.!!!

The non disclosure of this is RANK.!
[xx(]moi

[TheBossMan]

quote:Originally posted by thestorm

Can someone please explain to me why a shareholder like myself who paid $1.70 a share is not going to get anything back, even now that the company has been saved?

This stinks to high heaven!

[V]

Let's say Feltex owed ANZ $140m. When GH buys Feltex for $140m, all that money goes to ANZ, because Feletx owed ANZ $140m. ANZ was a secured creditor and the highest in the pecking order.

Had GH offered $175m, then the remaining $35m would have been passed to the company and the directors (&shareholders). In that scenario, the remaining $35m would be used to pay other creditors. If there was further $$ left, the shareholders could choose to divide that amount by the number of shares they had in the first place.

Sure, the receiver could have tried to get $175m or more and it is their only duty of care to shareholders to realise the best price for the assets. In this case, in absence of any other sound offers, the receivers must have decided to sign off on $140m.

[minimoke]

quote:
Sure, the receiver could have tried to get $175m or more and it is their only duty of care to shareholders to realise the best price for the assets. In this case, in absence of any other sound offers, the receivers must have decided to sign off on $140m.

Which is why I'm suggesting GH got $203m in value for $140m.

[kura]

quote:Originally posted by minimoke
Which is why I'm suggesting GH got $203m in value for $140m.

Quite correct, but whenever receivers sell anything, it is generally a "fire sale" no body would buy anything off a receiver if it wasn't dirt cheap.

[rawdata]

quote:Originally posted by kura


quote:Originally posted by minimoke
Which is why I'm suggesting GH got $203m in value for $140m.

Quite correct, but whenever receivers sell anything, it is generally a "fire sale" no body would buy anything off a receiver if it wasn't dirt cheap.


Eric Watson knows all about about 'dirt-cheap' assets from receivers - Powerhouse.

[rawdata]

Live and learn from experience - preferably the painful experiences of others.

Too many bought Feltex as a recovery story - failing to appreciate that the company was living on borrowed times with a Board and management team bereft of talent and drive.

[kura]

quote:Originally posted by rawdata


quote:Originally posted by kura


Quite correct, but whenever receivers sell anything, it is generally a "fire sale" no body would buy anything off a receiver if it wasn't dirt cheap.


Eric Watson knows all about about 'dirt-cheap' assets from receivers - Powerhouse.


I recall being told at school "it is the exceptions that prove the rule" (Powerhouse seems a good exception)

I also wonder about the expression "dirt cheap" as I don't know about the rest of you lot, but in my part of the country, a patch of dirt sure aint cheap !

[Lizard]

One question - do GH acquire the receivables but not the payables? I'm not quite sure how those are handled in purchase from receivers as a going concern?

[Sideshow Bob]

'Bizarre' acts killed Feltex
08 October 2006

Directors were more concerned with reputation than reality, say sources close to the deal. Garry Sheeran reports.


Feltex directors' concern for their own reputations drove a nail through the heart of a sick company and through small shareholders' hopes to save at least some of their money.

Sources close to Godfrey Hirst, the company which last week bought the assets of Feltex from receivers, said a near-certain 12c-a-share deal for Feltex shareholders was blown by directors' "bizarre" actions after a buy-out had been agreed.

They also said Feltex refused to countenance an earlier reverse takeover offer from Godfrey Hirst which would have realised long-term value for the company. Had that deal gone through, Feltex shares could now be trading at close to $1, they said. But it was rejected because it would have crystallised short-term losses for shareholders.

"It was all about reputations," one source said. "Directors were always looking for something with a bit of blue sky in it, no matter how tenuous it might be. But they refused to countenance any proposal that drew a line in the sand for the company, stopped the music for them, and showed clearly what the company was really worth."

The buyout deal signed off in early August by both companies and negotiators for Feltex bank ANZ, did just that.

The proposal, which would have seen Godfrey Hirst buy Feltex's assets and delist the company, would have returned $18 million of the $243m that shareholders had invested in the business.

Coming after more than a year's negotiations and several non-consummated deals, Godfrey Hirst negotiators thought they had a deal.

They were then disconcerted to see Feltex continue stock exchange announcements saying they were still free to accept alternative proposals.

It was their legal right to say this, but, after the failure of the Talley's and other potential "saviours", this appeared to Godfrey Hirst to be one last ditch attempt to secure another tyre-kicker for the seriously ill business.

They were dismayed to see their 9c to 12c-a-share offer being portrayed as possibly decreasing to nothing in the wash-up of the sales process.

The emergence, two days later of the Turner brothers' bid for Feltex, saw Godfrey Hirst withdraw its offer. With it went all hopes of at least 12c-a-share for shareholders when the bank refused the Turner bid and put the company into receivership.

The one gamble which paid off for Feltex - but which proved costliest to shareholders - was the decision to float the company in 2004.

Last week it was disclosed by banking sources in Australia that the ANZ loan to Feltex had been a problem for the bank for several years before the float.

In fact, Godfrey Hirst's first pitch for Feltex had been tentatively made during a difficult period for the company when owned by CS First Boston in 2002 - and forcefully rebutted.

The float came on the back of two exceptionally good years for the building and associated industries in both Australia and New Zealand in 2003-04.

But the inevitable downturn in a notoriously cyclical business had Godfrey Hirst back on the prowl in April last year.

Initially advised by investment bank UBS in New Zealand, that role was taken over in March this year by leading Australian corporate restructuring advisor KordaMentha. KordaMentha's involvement came at a time when Godfrey Hirst had seen its merger offer rebuffed.

It also came as Godfrey Hirst was withdrawing from its second attempt to secure Feltex by standing in the market for shares in the company.

By mid-February it was the largest shareholder in Feltex with a near 9% stake. But the company sold out at a loss of $2m when it realised the strategy was not paying off.

Godfrey Hirst advisors believed Feltex was able to mollify its increasingly concerned bankers with the fact that a potential buyer was not only waiting in the wings, but was buying Feltex shares.

Godfrey Hirst's share buying activities also helped to

[Mr_Market]

'Bizarre' acts killed Feltex
08 October 2006

Directors were more concerned with reputation than reality, say sources close to the deal. Garry Sheeran reports.

Feltex directors' concern for their own reputations drove a nail through the heart of a sick company and through small shareholders' hopes to save at least some of their money.

Sources close to Godfrey Hirst, the company which last week bought the assets of Feltex from receivers, said a near-certain 12c-a-share deal for Feltex shareholders was blown by directors' "bizarre" actions after a buy-out had been agreed.

They also said Feltex refused to countenance an earlier reverse takeover offer from Godfrey Hirst which would have realised long-term value for the company. Had that deal gone through, Feltex shares could now be trading at close to $1, they said. But it was rejected because it would have crystallised short-term losses for shareholders.

"It was all about reputations," one source said. "Directors were always looking for something with a bit of blue sky in it, no matter how tenuous it might be. But they refused to countenance any proposal that drew a line in the sand for the company, stopped the music for them, and showed clearly what the company was really worth."

The buyout deal signed off in early August by both companies and negotiators for Feltex bank ANZ, did just that.

The proposal, which would have seen Godfrey Hirst buy Feltex's assets and delist the company, would have returned $18 million of the $243m that shareholders had invested in the business.

Coming after more than a year's negotiations and several non-consummated deals, Godfrey Hirst negotiators thought they had a deal.

They were then disconcerted to see Feltex continue stock exchange announcements saying they were still free to accept alternative proposals.

It was their legal right to say this, but, after the failure of the Talley's and other potential "saviours", this appeared to Godfrey Hirst to be one last ditch attempt to secure another tyre-kicker for the seriously ill business.

They were dismayed to see their 9c to 12c-a-share offer being portrayed as possibly decreasing to nothing in the wash-up of the sales process.

The emergence, two days later of the Turner brothers' bid for Feltex, saw Godfrey Hirst withdraw its offer. With it went all hopes of at least 12c-a-share for shareholders when the bank refused the Turner bid and put the company into receivership.

The one gamble which paid off for Feltex - but which proved costliest to shareholders - was the decision to float the company in 2004.

Last week it was disclosed by banking sources in Australia that the ANZ loan to Feltex had been a problem for the bank for several years before the float.

In fact, Godfrey Hirst's first pitch for Feltex had been tentatively made during a difficult period for the company when owned by CS First Boston in 2002 - and forcefully rebutted.

The float came on the back of two exceptionally good years for the building and associated industries in both Australia and New Zealand in 2003-04.

But the inevitable downturn in a notoriously cyclical business had Godfrey Hirst back on the prowl in April last year.

Initially advised by investment bank UBS in New Zealand, that role was taken over in March this year by leading Australian corporate restructuring advisor KordaMentha. KordaMentha's involvement came at a time when Godfrey Hirst had seen its merger offer rebuffed.

It also came as Godfrey Hirst was withdrawing from its second attempt to secure Feltex by standing in the market for shares in the company.

By mid-February it was the largest shareholder in Feltex with a near 9% stake. But the company sold out at a loss of $2m when it realised the strategy was not paying off.

Godfrey Hirst advisors believed Feltex was able to mollify its increasingly concerned bankers with the fact that a potential buyer was not only waiting in the wings, but was buying Feltex shares.

Godfrey Hirst's share buying activities also helped to prop up the Feltex share

[Mr_Market]

You beat me to it SB. Won't hurt to reinforce the point though.

[kura]

quote:Originally posted by Lizard

One question - do GH acquire the receivables but not the payables? I'm not quite sure how those are handled in purchase from receivers as a going concern?

Yes, that is exactly the way things happen in receivership, as in unsecured creditors "dip out" if there is nothing left after paying out preferential creditors (ie the bank that holds debenture)
While unsecured creditors rank above shareholders in the payout pecking order, they generally dont get much on receivership. The main exception to the rule is Employee Entitlements, as they are governed by special rules. In the lead up to receivership, it was reported that there was increased cash flow requirements as some suppliers refused to give extended credit to FTX, this is evidence of prudent self protection by suppliers (any rational person would want COD type terms in their dealings with a "fragile" company)

Another possible exception is the issue of warranty claims on defective products previously sold, while they will generally fall into the unsecured creditor category, a receiver has the option of passing on the warranty provision to going concern purchasers, if the receiver considers it will maximise the brands goodwill in the marketplace (and ultimate sale price)

Still another exception is those suppliers that have supplied goods with a reservation of title clause (legal title to goods does not pass untill payment is made) this gives the suppliers the right to "repossess" their unpaid goods on appointment of a receiver, however there are several hurdles that need to be overcome before this can be successfull, (ie the interest must be firstly registered on the "Personal Property Security Register" with all the necessary "i"s dotted and "t"s crossed)

[Lion]

A bit off topic, sorry, but - Kura, those two expressions are very old, from times when words and values were often not as now.
Dirt was once cheap.
And "prove" once had the meaning to "test", so the exception tested the rule. The expression has kind of reversed its meaning over the years.

Whew, I didn't buy any Feltex, although I thought about it at the IPO. What a mess, what a bloody scandal!

[winner69]

minimoke ... Honeywell out of pocket by US$6.5M

http://www.smh.com.au/news/business/feltex-snag-yarn-supplier-refuses-to-send-any-more/2006/10/08/1160246011417.html

[minimoke]

quote:Originally posted by winner69

minimoke ... Honeywell out of pocket by US$6.5M

http://www.smh.com.au/news/business/feltex-snag-yarn-supplier-refuses-to-send-any-more/2006/10/08/1160246011417.html

Youch!

[kura]

quote:Originally posted by minimoke


quote:Originally posted by winner69

minimoke ... Honeywell out of pocket by US$6.5M

http://www.smh.com.au/news/business/feltex-snag-yarn-supplier-refuses-to-send-any-more/2006/10/08/1160246011417.html

Youch!

If you are a monopoly supplier, then you also have the option of refusing to supply goods/services unless the old prereceivership debts are paid ( I assume here, that Honeywell knows GH has no alternative source, which is why it can just threaten GH to withhold future supply, and why GH is now facing closing it's newly purchased Aust plants )

I recall our verry own TEL tried this tactic (refusing to connect phone lines to a new "post receivership" company unless old pre recievership debts were paid in full, but this was held to be an abuse of a monopoly position and they were penalised fairly heavily. (Retated back to the days before competition)

[winner69]

So even the Chch plant was a dog in Peters and Tims eyes .... The Receivers understand that over the last 12 months Feltex had been
exploring the options for the future of the Christchurch plant, including a possible sale of the plant and equipment to a Chinese woven carpet
manufacturer.

****e ... if Peter and Tim saw it as a dog it must be ... no wonder GH don't want iy either

[Heavy Metal]

quote:Originally posted by Heavy Metal

If FTX actually owns the land that factory will almost certainly be a casualty since the land would be worth millions if rezoned residential.

Knowing CSFB they've probably sold the land before the IPO and FTX may well be leasing the land.


The closure had to happen - the factory might have been run down but the land will be worth a mint. Perhaps 5 hectares, worth $10M+ when rezoned residential, in a prestigous ares of Chch next to Uni. Feltex could have closed the axminster carpet plant to realise some substantial gains but ran out of time. GH got a bargain here.

[winner69]

quote:Originally posted by Heavy Metal


quote:Originally posted by Heavy Metal

If FTX actually owns the land that factory will almost certainly be a casualty since the land would be worth millions if rezoned residential.

Knowing CSFB they've probably sold the land before the IPO and FTX may well be leasing the land.


The closure had to happen - the factory might have been run down but the land will be worth a mint. Perhaps 5 hectares, worth $10M+ when rezoned residential, in a prestigous ares of Chch next to Uni. Feltex could have closed the axminster carpet plant to realise some substantial gains but ran out of time. GH got a bargain here.


I gather the this Chch factory and site is still with the receiver .... GH didn't want anything of it .... so you shareholders still own it Mr Heavy Metal

[minimoke]

According to the news: "New Australian owner Godfrey Hirst stunned staff yesterday by announcing most of the 178 jobs at the uncompetitive Upper Riccarton plant would be lost." But McGrathNicol will continue to operate the Upper Riccarton plant until settlement of the sale to Godfrey Hirst in early November,

GH are obviously prepared to make the hard decisions. This is a decision FTX should have made ages ago. The plant was old, the land value high ( but I’m not sure its worth $10m - perhaps $5 net) and there were major issues with resource consents for noise and air emissions.

Furthermore since the Receivers have also announced that GH will not offer re-employment to approximately 134 employees at the plant so they may also be saving themselves some redundancy payments – the liability which will fall to FTX.

So GH now sitting on a valuable land bank, plant has some residual value, stock is pre sold and cash flow is better now that 150 workers don’t have to be paid – especially close to the dreaded statutory holiday payments associated with Show weekend and Christmas.

[Heavy Metal]

quote:Originally posted by winner69

I gather the this Chch factory and site is still with the receiver .... GH didn't want anything of it .... so you shareholders still own it Mr Heavy Metal


Hey Wiener you're way off the mark. I never owned Feltex shares but know the Upper Riccarton site well. I'm sure GH will end up owning the factory but it's worth a lot more closed than open.

Minimoke good point re remediation costs but they'll recover some of that through sale of equipment.

[COLIN]

I gather the this Chch factory and site is still with the receiver .... GH didn't want anything of it .... so you shareholders still own it Mr Heavy Metal
[/quote]

Proceeds might be needed to pay Honeywell so that they will continue to supply yarn to GH thus ensuring sale to GH goes through. (But Honeywell wouldn't be entitled to preferential treatment over other unsecured creditors. This must all be a great challenge to the Receivers, but their rewards will be major.)

[Panic E-Button]

How much payout/share current shareholders can expect?
Belgarion whats up?