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Tale of Transcentury CEO exit, Sh8b Debt
Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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No wonder TransCentury is in my "Do Not Buy" list. They took the lenders to the cleaners. TCL will never be able to do another Convertible Bond with an independent party. It's just a matter of time before they turn on the Minority shareholders. Buyer beware. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Swenani wrote:Mike Ock wrote:lochaz-index wrote:In short, TCL defaulted and is still going to default. A restructuring of debt is technically a default(which has already happened). The same applies to a moratorium (which it will be taking from September this year).
Why would/did the bondholders take such a huge loss and a further downgrade of their debt instead of pressing for payments or seek to wind up the company altogether?
Secondly, why would the minority bondholders convert their holdings into equity with heavy dilution just around the corner?
Thirdly, who are the faces behind kuramo capital and why are they injecting such a hefty amount in a company that ain't worth as much? With a given certainty of continued hemorrhage for the remainder of the outstanding bond amounts and loss making by TCL, kuramo may not get a return on equity for a long time... Why invest?
This is baffling/does not add up on so many levels. https://kuramocapital.com/about/team/
From researching these fellows, my best bet is it's the usual Transcentury patronage playbook, with a very official looking intermediary this time round It had to be Kenyans and Nigerians! Pretty faces and fancy titles! Something stinks in this transaction. I smell in appropriate dealings either fraud, money laundering, or insider dealings. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Return after 5 years? Negative 95% http://www.businessdaily...08/-/yoviea/-/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] On second look, this was a creditors compromise. Bondholders decided to take the scraps available rather than wind up the company and get nothing after paying off winding costs. Life is short. Live passionately.
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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hisah wrote:Wow! Bondholders have taken deep haircuts! I wonder what was the rationale behind the holders absorbing these haircuts. Shocking!!! 95% haircut?? How now??? Just how did they sign onto this?? You can't make these things up!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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MaichBlack wrote:hisah wrote:Wow! Bondholders have taken deep haircuts! I wonder what was the rationale behind the holders absorbing these haircuts. Shocking!!! 95% haircut?? How now??? Just how did they sign onto this?? You can't make these things up!! Clearly, securities exchange is not a fish market! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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sparkly wrote:[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] On second look, this was a creditors compromise. Bondholders decided to take the scraps available rather than wind up the company and get nothing after paying off winding costs. 1) They gave up the interest. 2) Then a haircut of 30% on the Principal. 3) Then buy shares at 49.60 when they trade at 5 WTF? Why would they even take shares vs cash? And the shares at 49.60 (not 5/-) AFTER they took a haircut on both the interest and principal. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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VituVingiSana wrote:sparkly wrote:[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] On second look, this was a creditors compromise. Bondholders decided to take the scraps available rather than wind up the company and get nothing after paying off winding costs. 1) They gave up the interest. 2) Then a haircut of 30% on the Principal. 3) Then buy shares at 49.60 when they trade at 5 WTF? Why would they even take shares vs cash? And the shares at 49.60 (not 5/-) AFTER they took a haircut on both the interest and principal. That country turns up again Mauritius. @VVs it defies logic and common sense. These are crooks in bed together no other explanation. ONly a fool or someone with something to lose or gain would accept such a deal. Something stinks here. really stinks. Its like a movie The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] I don't understand a single sentence in this article  Dumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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Aguytrying wrote:VituVingiSana wrote:sparkly wrote:[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] On second look, this was a creditors compromise. Bondholders decided to take the scraps available rather than wind up the company and get nothing after paying off winding costs. 1) They gave up the interest. 2) Then a haircut of 30% on the Principal. 3) Then buy shares at 49.60 when they trade at 5 WTF? Why would they even take shares vs cash? And the shares at 49.60 (not 5/-) AFTER they took a haircut on both the interest and principal. That country turns up again Mauritius. @VVs it defies logic and common sense. These are crooks in bed together no other explanation. ONly a fool or someone with something to lose or gain would accept such a deal. Something stinks here. really stinks. Its like a movie It is not even like a movie!!! If you wrote a movie like this it would do so badly because of it's unbelievability!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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VituVingiSana wrote:sparkly wrote:[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] On second look, this was a creditors compromise. Bondholders decided to take the scraps available rather than wind up the company and get nothing after paying off winding costs. 1) They gave up the interest. 2) Then a haircut of 30% on the Principal. 3) Then buy shares at 49.60 when they trade at 5 WTF? Why would they even take shares vs cash? And the shares at 49.60 (not 5/-) AFTER they took a haircut on both the interest and principal. @vvs - This must be mademoni!! I would never take a 95% haircut to save a company yet the shareholders - starting with the main shareholders are not making such drastic sacrifices!!! We had better wind up the company and I get my 0%. And if "we" refuse to deal as bond holders, the company might actually get an alternative. If they don't, to hell!!! On this, 0% is better than 5%!!! We negotiate and you tell me you have a deal where I will get 5% of what I am entitled to and I sign. And you are the one who f@*ked up??? Not gonna happen!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Focus. Minority holders. Focus. Well Done TCL Negotiators.  And thanks Kuramo for taking one for the team  Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Most of the companies established by former president Kibaki cronies are now collapsing. If you are wise runaway very fast from them else you will be burnt severely Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MaichBlack wrote:VituVingiSana wrote:sparkly wrote:[quote=VituVingiSana]Return after 5 years? Negative 95% http://www.businessdaily...8/-/yoviea/-/index.html[/quote] On second look, this was a creditors compromise. Bondholders decided to take the scraps available rather than wind up the company and get nothing after paying off winding costs. 1) They gave up the interest. 2) Then a haircut of 30% on the Principal. 3) Then buy shares at 49.60 when they trade at 5 WTF? Why would they even take shares vs cash? And the shares at 49.60 (not 5/-) AFTER they took a haircut on both the interest and principal. @vvs - This must be mademoni!! I would never take a 95% haircut to save a company yet the shareholders - starting with the main shareholders are not making such drastic sacrifices!!! We had better wind up the company and I get my 0%. And if "we" refuse to deal as bond holders, the company might actually get an alternative. If they don't, to hell!!! On this, 0% is better than 5%!!! We negotiate and you tell me you have a deal where I will get 5% of what I am entitled to and I sign. And you are the one who f@*ked up??? Not gonna happen!!! @Maich one of your infantile rants once again? A company has a separate identity from the owners and no paid up owner is obliged to save the company from demise. Creditors have the motivation to resuscitate a dying company. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Wow! On one hand, you tell bondholders that they need to take a huge (50%) haircut. Then there is the bondholder who converted at 5%. Yet you have KES 712mn to buy more shares in Civicon. http://www.businessdaily...-/12064eyz/-/index.html
Ngai! I would not do business with TCL guys. They are brutal folks! Has any Wazuan done any biashara, as a supplier, with Tranny? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@VVS TCL is dead;tell me which contract Civicon are winning in the infrastructure industry. Chinese have taken over nearly everything Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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VituVingiSana wrote:Wow! On one hand, you tell bondholders that they need to take a huge (50%) haircut. Then there is the bondholder who converted at 5%. Yet you have KES 712mn to buy more shares in Civicon. http://www.businessdaily...-/12064eyz/-/index.html
Ngai! I would not do business with TCL guys. They are brutal folks! Has any Wazuan done any biashara, as a supplier, with Tranny? And they bought the shares in cash no less!!! As I was saying, I would never have signed on the dotted line if I was a bond holder. And some fellow who depends on theory is saying that creditors have the responsibility to save a company from collapsing. That is with a view to recovering 100% of what they are owed and hopefully future business. Recovering only 5% and that's it??? Totally unheard of!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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Ericsson wrote:@VVS
TCL is dead;tell me which contract Civicon are winning in the infrastructure industry.
Chinese have taken over nearly everything Civicon is at an advanced stage (financing stage) of negotiating a 42Km road in Kenya. They are also near completion of Wrigleys factory in Mavoko. Emali tin can factory is done and dusted. They are still providing services for Tullow oil (which is issuing a bond to expand operations in EAC - meaning more work/space for civicon and chinese) Just last week i saw very very wideload vehicles with the logo civicon carrying things that looked like turbines - i don't know where they were headed.etc...etc.... Despite being burnt to recognition by tranny, i am very bullish about it going forward (2 -3 years from today). Kuramo are indeed here to provide cash that is required to compete in the infrastructural space Dumb money becomes dumb only when it listens to smart money
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Ericsson wrote:@VVS
TCL is dead;tell me which contract Civicon are winning in the infrastructure industry.
Chinese have taken over nearly everything Then why spend $7mn in CASH to buy more shares in Civicon? BTW, I am a mere spectator in TCL. It's like watching a car crash in slow motion! @Maich - Agreed. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MaichBlack wrote:VituVingiSana wrote:Wow! On one hand, you tell bondholders that they need to take a huge (50%) haircut. Then there is the bondholder who converted at 5%. Yet you have KES 712mn to buy more shares in Civicon. http://www.businessdaily...-/12064eyz/-/index.html
Ngai! I would not do business with TCL guys. They are brutal folks! Has any Wazuan done any biashara, as a supplier, with Tranny? And they bought the shares in cash no less!!! As I was saying, I would never have signed on the dotted line if I was a bond holder. And some fellow who depends on theory is saying that creditors have the responsibility to save a company from collapsing. That is with a view to recovering 100% of what they are owed and hopefully future business. Recovering only 5% and that's it??? Totally unheard of!!! @Maich read The Companies Act 2015: PART XXXIV — compromises, Arrangements, Reconstructions and amalgamations Life is short. Live passionately.
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