Junior lenders in RPF have agreed to sell their loans for 31c in the dollar, to a consortium of Pitt Capital [that's Sol Lew's machine], Investec and Laundy Hotel Group. This haas scuttled the roval recapitalisation proposal of Goldman Sachs and US hedge funds, whose proposal to pay 31c in the dollar, fell over when refused by senior lenders, ANZ and RBS, on the loans worth $75m.
The long-running stand-off by the junior and senior lenders (GS and the hedgies own 39% of the senior debt), has increased the likelihood that the pub landlord will slip into liquidation as early as next [this upcoming] week. The Board will be unable to sign off on the annual accounts unless the Directors secure a waiver on a coming debt amortisation payment [accounts due to be signed off by 31 August, senior lenders (the consortium) have to give that authorisation, and part of the $580m is has in senior debt due by September 30]. __________________________
... has an analyst saying that the Goldman Sachs consortium stands to make +$100m profit from the trust's bankruptcy, as opposed the the recapitalisation, which would make them about $70m. The consortium holds the last right of refusal on the NLG pubs, "which would likely deter any rival bidder). ___________________________
So, now BOSI and ANZ are not at risk- it's Investec, Pitt and Laundy who own the junior debt. Signed off on Friday, so that's big news.
It also says that the scheme implementation document between the consortium and Redcape, prevents RDF's Board from negotiating with other suitors. The Investec/Pitt team, were going to wait until the deadline expired, which it has now. There's no guarantee of a rival bid.
I like this bit:
"... this high stakes game of chicken looks like ending in an explosive finale." ____________________________
Anyone else still holding?
RPF Price at posting:
6.0¢ Sentiment: None Disclosure: Held
