UK 19:05 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Lucian will be here soon so I thought Id better record ahead of our trip to the Conservative Club with its tempting cheap beer. On the agenda I fail to mention that Finncap are complete and utter bastards but they are. I do, however, cover Ruspetro (RPO), Gulf Keystone (GKP), SeaEnergy (SEA), Rose Petroleum (ROSE), Sierra Rutile (SRX), Burberry (BRBY), Mothercare (MTC), a couple of Paul Scott jokes - please do not tell me he has any friends in the Mothercare management community that he thinks I may be offending - as well as a word or two on Challenger Acquisitions (CHAL)
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Comments
BlueFrew
GKP is Afren Mk II. The first signs of trouble at Afren were firstly failing to meet payments to bondholders on time. The word stakeholder appearing in RNSes. But most of all the BBMs trying to convince anyone who will listen that this is just a short term difficulty and long term they are long and strong with their golden tickets.
I’ve increased my fairly large short a little this morning. I’ve left some in reserve though. Hopefully there will be some wild rumours put about by the BBMs and a nice dead cat bounce. That’ll be the time to really get selling (Afren went from about 7 or 8p to 14p at one point before dropping back).
Paul Scott
Hi Tom,
Haha, I only do 4-hour lectures on retail margins when I’m certain that I’m right! As of course I was & still am with BooHoo – an exceptional business in my view.
I’m not so sure on Mothercare. It always struck me as odd that it made so much profit overseas, but didn’t make a profit at home. It’s usually the other way around. Anyway, we’ll see – no strong view either way from me on MTC.
Regards, Paul.
johng
http://oilprice.com/Latest-Energy-News/World-News/Giants-Continue-To-Topple-In-The-Energy-Sector.html
By Zerohedge
Elsewhere, Gulf Keystone Petroleum Ltd. also took its first step to a Chapter 11 filing when it announced it would delay about $26 million of bond payments due next week “as low oil prices and disruptions in Iraq press its finances.”
As Bloomberg reports, “the company intends to use grace periods for payments on convertible bonds and guaranteed notes due on April 18, it said in a statement on Thursday. Shares of the London-based oil explorer tumbled as much as 36 percent to record-low 4.5 pence.
Gulf Keystone, which operates in the Kurdish region of northern Iraq, also intends to hold talks about fundraising and debt obligations after oil prices plunged about 60 percent in two years. Financial difficulties have been compounded by previously erratic export payments from the Kurdistan Regional Government.
Related: Have We Seen The Bottom In Oil Prices?
“We are working to achieve the best possible way to restructure our balance sheet,” Gulf Keystone’s Chief Executive Officer Jon Ferrier said in the statement. “Addressing our funding needs will ensure the company’s longer-term future.”
Payments on $325 million of October 2017 convertible notes can be delayed until May 2, without risk of default. Those on $250 million of guaranteed notes due April 2017 can be postponed until May 3. The convertible notes are quoted at 13 cents on the dollar, while the guaranteed notes are at 49 cents, according to data compiled by Bloomberg.
Bondholders including GLG Partners, Sothic Capital Management and Taconic Capital Advisors have hired Houlihan Lokey Inc. to advise them on the potential debt restructuring, people familiar with the matter said in February.
It is unlikely that these coupon payments will be paid meaning that the ad hoc creditor committee will likewise end up owning the company, which when delivered, will continue pumping even more oil now that its overall cost of capital slides as it has no more debt payments to worry about