Yeah saw it. I loved how HAS apparently "revealed it had allowed its shares to continue trading for days after secretly receiving a default notice from its biggest lender, Wyloo." Secretly? Really.
By secretly, does he mean HAS passing a private "purported notice of default from Wyloo in connection with the Project Loan Notes" directly to its legal counsel and then providing its legally advised response that "no default has occurred in relation to the Exchangeable Notes and that it has complied with the documentation of both facilities [according to the debt caveats]" and "continuing its discussions with Wyloo in respect of the Exchangeable Notes in advance of their maturity."?
That's called "course and order of business". This, again, is click bait journalism. The reporting of the spat a worthwhile journalistic exercise, the manner of reporting it, sensationalised and possibly well fed by Wyloo staff - how else does Mr Kerr learn of all this?
I'd strongly suggest investors read the original terms and think about how creditors and debtors renegotiate terms on poor debt for both creditor and debtor.
This is all public posturing by HAS' creditor for negotiations in a wider strategy of a restructuring of the debt, the terms of which are looking untenable for HAS, but also crap for Wyloo. This is all likley part of the negotiation of terms - with indeed some undeniable risk of going pear shaped for HAS (and therefore Wyloo). If HAS takes a hit on this, so does Twiggy on his financial asset lending. Its in their interest to resolve this somewhat compromised both sides.
That could indeed include a possible large equity stake in HAS for Wyloo in exchange for some renegotiated relief. But at a $44 million mkt cap vs a $150 million loan, its going to have to be continued debt and new equity package. I wouldn't be surprised if Peter Ker enjoyed a few drinks in the company of Wyloo executives this evening, as they feed him his next headline to push HAS executives to a further weakened position in said discussions. It was a convertible debt note, given in a time of very low interest rates on very generous terms comparative to what would be granted now, that is a showing as a very poor financial asset, well offside for Twiggy. Creditors are not generally in the habit of destroying the debtors they need to service their debt and the default argument even if won, leads Wyloo to getting cents back on the dollar. Neither party wants that outcome ultimately. Wyloo just wants better terms going forward on a debt it will most likely restructure and extend.
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