That seems to make sense, and has to be a viable scenario at least.
I am not going into RPC010 at this time.
I might spend more time looking at PGW and NZFSU over the next few months, but not making a move now.
Alan.
Printable View
Look like they might have a few problems meeting payments as they fall due:
http://www.nzherald.co.nz/markets/ne...0638889&pnum=0
"Market commentator Arthur Lim says a key stake in rural supplier PGG Wrightson could be up for sale after Craig Norgate's investment company warned it does not have enough money in its account to meet the next dividend payment to its preference shareholders.
Rural Portfolio Capital, the financing arm of Norgate and the McConnon family's Rural Portfolio Investments, which owns 12.5 per cent of Wrightson, told the market late on Thursday it had breached a trust deed by failing to have enough money in its escrow account to make an October payment.
It has 30 days to remedy the breach. In its statement, Rural Portfolio Capital said it planned to meet the deadline and had also asked for an extension from its other funders to allow it to pay them back."
Will be an interesting one to watch!
Alan.
Looks like RPI is selling down PGW and paying off it's senior debt. Seems as if funds have been freed to heal the interest escrow account covenant breach in RPC010.Quote:
Originally Posted by Rural Portfolio sells half of Wrightson stake
Looks like they might make it to the end of the year. At this point the security shortfall in the repayment of capital looks like the most significant issue.
Too complicated to comprehend on friday afternoon but does that announcement today say RPI et all are in the crap - good and proper
Or did I misread it because shown as RPC010 a big gainer on some sites with green arrows and all that sort of stuff
But jsut to highlight who stupid most sites are about reporting these sort of things Direct Broking say the market cap of RPC010 is now $90m .... ie 60 mill times 1.50
Funny eh when you can a buck for 40 cents or something
So that announcement did unfortunately lay it all out for investors
It's all over - RPI has run out of funds.
They cannot "heal" the deficit in the dividend escrow account. Hence, they are in violation of the trust deed. There is no prospect of dividends from PGW, NZS or other funds from RPI.
They are now "worth" the mark to market value of the security. (We did this calculation before - with the addition of $0.75million in the div escrow account from the RPI asset sales.
The issue is will the Trustee sell the security (look out below .... PGW and NZS coming down) or will they distribute the security pro rated to the RPC010 holding and let the punters decide to hold or sell (look out below ... PGW and NZS coming down).
Sad situation ... but the RPI executive seems to be behaving with integrity. It is shocking that RPI has had it's equity wiped out ... the losses on the PGW and NZS holdings have been crippling.
I have seen this "capitalisation" reported by someone (who shall not be named) who should know better. I'd say that someone who bought RCP010 based on this misinformation could be profoundly pi$$ed off to find out, in fact, that the capitalisation has gone the opposite direction. You get better analysis (but poorer spelling) on www.sharetrader.co.nz.Quote:
Originally Posted by winner69
struggle with the logic that moving from a salary of 3.5m to .5 constitutes a 3mil pa investment in a company