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$7.50 antares energy limited

Aurora/Antares in the AFR, page-5

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webbj

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03/07/16

22:04

Post #: 18182569
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Originally posted by tdk2020 ↑

Not posting the whole article, but a good recap of what happened to Antares and how it impacted Aurora here:

"But there was a bigger problem brewing in the background. A position in Antares Energy convertible bonds – which accounted for 8 per cent of the fund – was turning from innocuous to nightmarish, at the worst possible time.
Antares is an ASX-listed oil and gas explorer with assets in Texas' shale-gas heartland – the Permian Basin. In September 2015, it told the exchange that private equity bidders had lobbed $US250 million for two of its assets.
The market seemed sceptical but news, and further details that the bid was in cash sent Antares shares on a 400 per cent surge. Then, the ASX stepped in to suspend trading in both the notes and the bonds, because there was no information about the buyer.
While the market and the exchange had their doubts about the deal, the credibility gap was a chance to make some good money.

If the sale did consummate, the cash proceeds would work out to 92¢ a share – and noteholders were entitled to convert their securities into three shares – or $2.77 for a 44 per cent gain on the $1.92 closing price.
For the time being, however, note-holders including Aurora Funds', were stuck in a security it couldn't sell, while they waited for news of a sale.
With trading in suspension, note-holders, who could redeem for cash in October, voted to extend the repayment date to March. Their anxiety was compounded by the harrowing plunge in the oil price which wiped out the value of their assets, leaving them short of funds.
In February, Aurora chose to voluntarily suspend redemptions on three funds because of the notes, which accounted for more than 8 per cent of the fund.

This was done, it said, to treat all unit holders "equally". If Aurora unit holders liquidated, the redemptions could only be met by its liquid positions. And that would leave those with money still in the funds with an increasingly larger exposure to the Antares notes.
The Antares position had created multiple headaches. While redemptions were suspended in February, clients were able to redeem for three months prior, even as the Antares securities were suspended. That made the valuation of the notes in calculating the net asset value, and therefore the redemption price, problematic for auditors.
On April 29 Antares officially raised the white flag. The required majority of noteholders rejected a further extension of the repayment date, tipping it into administration.
Aurora, along with other noteholders that had a $47 million unsecured claim on the company, now had to wait with other creditors – a process that could take several months."

http://www.copyright link/business/...-collapse-of-aurora-funds-management-20160630

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excellent article, thanks for the link.

AZZ Price at posting: 50.0¢ Sentiment: None Disclosure: Not Held
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