PGC - Licenced to Bank

[percy]

PGC MARAC mentioned www.chrislee.co.nz click on click here to enter,then go to market news,click on to that,then scroll down.

[Balance]

Torchlight in perspective :

Excerpt : "In another story, PGC's Torchlight Credit fund has announced it is willing to extend the $75m prior charge secured credit facility it granted the company in October, and offer the company further liquidity support by buying assets from it. This is likely to mean that this friendly vulture is considering buying senior tranches of SCF's loan book, leaving SCF with the highest risk tranches. This is how the company can turn first ranking positions into second ranking positions and get some cash in the door and keep the show on the road a little longer. Whether it will be advantageous to the SCF and its guarantor would be a different question."

PGC's game plan becomes clear. Clever huh?

[mouse]

This is a rather mysterious article. Which seems to indicate that SCF is woefully short of cash. The trouble is, I do not understand the figures or argument. Would someone please like to look at the article and attempt an explanation. I am sure it is not Gibberish, but what language it is I do not understand.

[Balance]

This is a rather mysterious article. Which seems to indicate that SCF is woefully short of cash. The trouble is, I do not understand the figures or argument. Would someone please like to look at the article and attempt an explanation. I am sure it is not Gibberish, but what language it is I do not understand.

Send us a link, matey and we will have a look.

[Dr_Who]

Torchlight in perspective :

Excerpt : "In another story, PGC's Torchlight Credit fund has announced it is willing to extend the $75m prior charge secured credit facility it granted the company in October, and offer the company further liquidity support by buying assets from it. This is likely to mean that this friendly vulture is considering buying senior tranches of SCF's loan book, leaving SCF with the highest risk tranches. This is how the company can turn first ranking positions into second ranking positions and get some cash in the door and keep the show on the road a little longer. Whether it will be advantageous to the SCF and its guarantor would be a different question."

PGC's game plan becomes clear. Clever huh?

Interesting and very clever indeed.

What is the valuation on the SCF loan book (NTA) that Touchlight is funding? Also, do you have a list of the assets? I wanna do some numbers myself. Cheers

[Balance]

Interesting and very clever indeed.

What is the valuation on the SCF loan book (NTA) that Touchlight is funding? Also, do you have a list of the assets? I wanna do some numbers myself. Cheers

The real point to note here is that Touchlight has a first ranking priority fully secured security over ALL of the assets of SCF - $75m against $2.3 billion of assets.

Touchlight will only lose money if SCF loses $2.225 billion of assets first.

Not a snow ball's chance in hell.

Meanwhile, PGC gets to cherry pick SCF's best assets to add to its portfolio.

[whatsup]

The real point to note here is that Touchlight has a first ranking priority fully secured security over ALL of the assets of SCF - $75m against $2.3 billion of assets.

Touchlight will only lose money if SCF loses $2.225 billion of assets first.

Not a snow ball's chance in hell.

Meanwhile, PGC gets to cherry pick SCF's best assets to add to its portfolio.

Bal---, Things at SCF must really really really have been in a sorry sorry state for them to agree to a loan of this type in the first place , I personally cant see that this was/is the realistic situation for this to be tha case,,, somethings not quite the case here, A H is just not that despirate to agree to these conditions.

[Balance]

Bal---, Things at SCF must really really really have been in a sorry sorry state for them to agree to a loan of this type in the first place , I personally cant see that this was/is the realistic situation for this to be tha case,,, somethings not quite the case here, A H is just not that despirate to agree to these conditions.

Those are the facts.

Excerpt from Timaru Times 30 Oct 2009 :

"The $75 million Torchlight credit line, which has been fully drawn down, is likely to be relatively short term and possibly costing South Canterbury "double-digit interest" (more than 10%) as Pyne Gould "took its pound of flesh".

"There is a possibility Pyne's could take a stake in South Canterbury and make moves toward a merger or similar arrangement. They could see plenty of opportunity for an alignment."

He said "what may not be obvious" was the $75 million Torchlight fund had a "prior ranking charge", meaning the loan ranked ahead of all other obligations, including those to debenture and deposit holders.

"This prior ranking should offer a very high level of security to Torchlight," Mr McIntyre said.

Before taking on the Torchlight facility, South Canterbury had $34.1 million in existing prior ranking charges and now will have $109.1 million, with a capacity remaining of about $52 million, which the company could borrow against.

"Torchlight may well be the `fund of last resort'. But no-one else has stepped up to take the high ball," Mr McIntyre said.

Mr Kerr, in a statement for Torchlight Credit Fund, said "investments that are perceived to be too difficult for banks often create opportunities for fund managers. The fund has been established to focus on exactly this type of situation."

Amen.

[Anna Naum]

Note recent size seller seems to have been dealt with. After pounding the price at 44/45c it has now bubbled up to 47c.

[mouse]

Send us a link, matey and we will have a look.

Sorry, I have tried to find a link to insert but cannot locate one. So it is in todays Press, Bruce McKay, page A12, South Canty Finance comment. The argument is basically that the Capital Adequacy is not 11.9%, rather it is 1.2%. If true, then SCF is in major trouble. But I cannot understand the article. Or the table. Help!