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  1. #1
    ShareTrader Legend bull....'s Avatar
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    Quote Originally Posted by Beagle View Post
    I know you two have a soft spot for unwanted mutts but be careful with this one.

    I think there's a real chance if they lose at the Supreme Court this could go under $4. If that happens then its likely they will need a massive rights issue to get their excessive leverage down to a sensible level and fund a replacement facility somewhere else in the Waikato. Remember, Pokeno was 100% debt funded and you can be assured their financiers will be really "impressed" if its rendered effectively worthless !
    think its almost certain they will lose and have to make compensation payout. the dude will make many millions lol
    one step ahead of the herd

  2. #2
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by bull.... View Post
    think its almost certain they will lose and have to make compensation payout. the dude will make many millions lol
    I don't think he wants a compensation payout. Just wants them gone. The interesting thing with this case is covenant law goes back hundreds of years and I think its highly unlikely the Supreme Court will rule against that and start a new precedent so on the face of it Synlait really do look to be in very serious trouble.

    We know they've already tried to settle this and I am sure more than one offer has been made, but all their overtures have obviously been rejected. If you go back and read the various NZX releases from Synlait over recent times about Pokeno they talk about how we're confident this can be resolved, mentioned many times and lots of other calming words but all Synliat assurances that they have this in hand have come to what ? You guessed it Nothing !...and its down to hoping the Supreme Court rule in their favour. Sometimes people are too driven to grow and succeed and without proper governance and checks and balances they trip up and fall on their face and this is shaping up as John Penno's crowning disgrace. The board also sanctioned his approach so the rest of the board should also all resign if they fail at the Supreme Court.
    Last edited by Beagle; 17-02-2020 at 09:31 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  3. #3
    ShareTrader Legend bull....'s Avatar
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    Quote Originally Posted by Beagle View Post
    I don't think he wants a compensation payout. Just wants them gone. The interesting thing with this case is covenant law goes back hundreds of years and I think its highly unlikely the Supreme Court will rule against that and start a new precedent so on the face of it Synlait really do look to be in very serious trouble.

    We know they've already tried to settle this and I am sure more than one offer has been made, but all their overtures have obviously been rejected. If you go back and read the various NZX releases from Synlait over recent times about Pokeno they talk about how we're confident this can be resolved, mentioned many times and lots of other calming words but all Synliat assurances that they have this in hand have come to what ? You guessed it Nothing !...and its down to hoping the Supreme Court rule in their favour. Sometimes people are too driven to grow and succeed and without proper governance and checks and balances they trip up and fall on their face and this is shaping up as John Penno's crowning disgrace. The board also sanctioned his approach so the rest of the board should also all resign if they fail at the Supreme Court.
    payout or get out its lose lose for synliat
    one step ahead of the herd

  4. #4
    Senior Member Marilyn Munroe's Avatar
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    Quote Originally Posted by Beagle View Post
    The board also sanctioned his approach so the rest of the board should also all resign if they fail at the Supreme Court.
    The management and board deserve a smidgen of sympathy as they had a favourable High Court decision before the Court of Appeal went "hang on a minute mate".

    My understanding is the covenantor was not a party to this case but entered the fray at the Appeal Court case. I find it unlkely they would not have had legal advice at some stage that overturning the covenant in conjunction with a third party and without the ovenantor being present to argue his corner is risky.

    This could end up as another instance of being careful investiing in companies governed by former politicians. Will we have the mother of all resignations?

    Bopp boop de do
    Marilyn
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  5. #5
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    Quote Originally Posted by Marilyn Munroe View Post
    The management and board deserve a smidgen of sympathy as they had a favourable High Court decision before the Court of Appeal went "hang on a minute mate".

    My understanding is the covenantor was not a party to this case but entered the fray at the Appeal Court case. I find it unlkely they would not have had legal advice at some stage that overturning the covenant in conjunction with a third party and without the ovenantor being present to argue his corner is risky.

    This could end up as another instance of being careful investiing in companies governed by former politicians. Will we have the mother of all resignations?

    Bopp boop de do
    Marilyn
    Interesting that A2 have no representative on the board, however Bright have 3 seats around the table. With all due respect, knowledge or understanding of NZ legal systems is unlikely to be high up in their skill set.

    Not that she is necessarily there for her legal skills, but there is only one director with a legal background......yep, you guessed it!

  6. #6
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Sideshow Bob View Post
    Interesting that A2 have no representative on the board, however Bright have 3 seats around the table. With all due respect, knowledge or understanding of NZ legal systems is unlikely to be high up in their skill set.

    Not that she is necessarily there for her legal skills, but there is only one director with a legal background......yep, you guessed it!
    No wonder they're in the ****
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

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