RE:RE:RE:RE:Why haven't they deferred Cinven payout? Yeah good point Danny. I guess its premature to jump to the payout if there is still a month left. Although I'm sure that now with 11 months gone, they have adaquate information on the performance targets so probably why they kept ~$144M cash on hand. They must be expecting to pay out.
dannyd9 wrote: Thanks vision; Upon checking sedar, the amount payable is based on targets being reached to end of sept 2016. That means it will likely be october before we hear anything. Secondly, the maximum payout is 220 million if all targets are reached.
LaticelnExile wrote: visionaryfool, Yes, it would surprise me if they don't defer half of the payment. If they do defer it that would just keep the fire burning until February 2017. The reason why I feel that way (and again, only my opoinion here) is that on their con call they touted compliance with debt covenants. I don't believe them simply because they suspended the divi. The divi only gave them $15mil, so really its only $7.5 mil for H2. When Thompson said on the con call, (not verbatim but it went something like : "now I now our naysayers will say we need the cash" I was like... yah pal, you said it not me. For insiders, the divi was worth too much to just hand wave away if they didn't need the $7.5mil. It netted Thompson probably half a million in his personal lambo-fund because he also got a divi on his RSU's ... and it was also something shorts had to pay to the stock they had on loan... so getting rid of it was like a gift to the shorts. In a nutshell, I saw getting rid of the divi as confirmation of how tight it is for them. So I I see them taking the 50% deferral and prolonging their pain for another three months. And I think that management knew they would be cash strapped back in December, 2015 (otherwise, why did they even negotitate the deferral agreement with Cinven back then?) I also think that CInven was worried about their investment at the time of the agreement and swapped behind the curtain. Just my opinion, for what its worth (not that much on this bull board!) Cheers.
Yeah I hear ya. I think Cinven got out back in December when this thing hit its peak. I'm thinking they probably want to keep the payout deferred just so Cinven doesn't dump their shares (if they haven't already).