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Tale of Transcentury CEO exit, Sh8b Debt
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MaichBlack
#191 Posted : Tuesday, July 05, 2016 1:18:42 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,836
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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Pesa Nane
#192 Posted : Tuesday, July 05, 2016 5:35:36 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Focus. Minority holders. Focus.

Well Done TCL Negotiators. Applause Applause Applause
And thanks Kuramo for taking one for the team smile
Pesa Nane plans to be shilingi when he grows up.
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Ericsson
#193 Posted : Tuesday, July 05, 2016 5:44:50 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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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sparkly
#194 Posted : Tuesday, July 05, 2016 6:30:19 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
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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VituVingiSana
#195 Posted : Monday, July 11, 2016 11:00:53 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
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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Ericsson
#196 Posted : Monday, July 11, 2016 11:04:12 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
@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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MaichBlack
#197 Posted : Monday, July 11, 2016 11:17:57 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,836
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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Fyatu
#198 Posted : Monday, July 11, 2016 11:37:26 AM
Rank: Veteran

Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
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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VituVingiSana
#199 Posted : Monday, July 11, 2016 11:38:58 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
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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sparkly
#200 Posted : Monday, July 11, 2016 1:09:03 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
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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