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Post by optymystic on Dec 18, 2020 11:24:27 GMT
Festive News to bring you good cheer
Update for M***** V***** CHP plc Debenture holders 18 December 2020
As we approach the end of the year, and the next payment date for our investors, we wanted to provide you with a further update. Unfortunately, while there have been some positives since we last updated you in September, we will not be able to make the payment due on 31 December 2021.Cashflow and payments from Ofgem Since our last update to you, we have received a payment from Ofgem within 13 workings days of our first RHI claim since the business restarted generation in Hereford in early August. This represents a significant improvement in payment timings, with Ofgem previously taking their full 40 working day allowance in many instances and with this extending to 50 working days in some cases.We have previously exchanged of letters with Patricia Dreghorn, Director of Ofgem E Serve and while there were disagreements expressed clearly on both sides,we believe that as a result of these being aired we have now moved to a new position in our relationship with Ofgem and their administration of our payments. While we cannot be sure that this improved payment processing will continue (and Ofgem has stated they cannot commit to a timeline other than the 40 working day limit),we are nonetheless hopeful that they may well continue, with the good will of our account manager, to process payments to us more quickly than before.
Operational status The importance of timely payments from Ofgem, and the difficulty caused by their inability to commit to shorter payment terms, was highlighted in October when we were forced to temporarily suspend operation of our CHP and biomass units. Without the certainty of when we will receive the RHI payment for our backdated generation, we were unable to continue to purchase the woodchip required to run the units.Once the RHI payment was promptly made in early November we were, however, able to recommence generation. Our cash flow forecast reveals that providing Ofgem maintain a positive payment approach, the company will now be able to stabilise generation at the originally forecast levels and we will not have to curtail generation to manage our cashflow.In terms of the activity at the business park where we operate, which determines the demand for the electricity we generate,this has improved and the businesses are operating the equivalent of 6 full day weeks. We expect this to continue into January.
Next steps While we cannot be certain the effects of Covid-19 on the business have come to an end,we believe that prospects for maintaining continuous production are now in place and we are trying hard to achieve this. If we are able to stabilise our operations, and get our income back to the levels we originally forecasted, we will be in a much better position. Our intention now is to work with our accountants to establish an accurate financial picture including medium term forecasts based upon our assessment of the markets in which we operate, our expected energy generation and wood fuel drying. We will prepare a plan on how we can bring the company to a stable financial position and hopefully go on to deliver on our original plan to create energy from renewable resources. As part of this, we will be preparing proposals to share with investors that outline the options available for you and your investment.We will aim to update you on these proposals as early as possible in the new year.In the meantime we would like to thank you again for the support, patience and forbearance that you have provided. Lastly,we hope and trust that you will have a safe and merry Christmas and New Year.
The Directors
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Post by GentlemansFamilyFinances on Feb 23, 2021 22:32:29 GMT
I've had a quick look at the marketplace for this one and I'm surprised that there are still buyers.
One went today for 80% or so which is a miracle!
Maybe they read something different from what I did but I'm glad I'm not involved.
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Post by optymystic on Feb 23, 2021 22:46:23 GMT
If they are sourcing their wood chip locally i its fine, but if they have been importing their woodchip from europe I can see potential difficulties with e.g. what does the empty truck carry on the return journey?
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Post by optymystic on Feb 24, 2021 10:05:58 GMT
I've had a quick look at the marketplace for this one and I'm surprised that there are still buyers. One went today for 80% or so which is a miracle! Maybe they read something different from what I did but I'm glad I'm not involved. This whole project is a mess. The entire debt was rescheduled following a substantial bale in by the creditors and has again gone into default. We have to wonder whether or not a complete debt for equity swap would not give the creditors something which might be more readily tradeable and give the business a future.
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Post by GentlemansFamilyFinances on Feb 27, 2021 22:49:25 GMT
I agree - COVID's not helped but failing to pay on renegotiated terms just looks really really bad.
Still, people are buying it but it's a total pig in a poke - not for me.
Even the projected IRR on a 40% discount is lower than you can get for the C****c debentures which appear to be proceeding well after they raised millions in equity for the company.
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Post by optymystic on Mar 5, 2021 14:14:04 GMT
I dropped by the site this lunch time. There was no sign of activity, no smell of resin from drying wood chips and no noise from the big fans which did not appear to be turning..
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Post by moneyfornothing on Mar 10, 2021 9:40:32 GMT
This is very sad news indeed.
The lack of transparency by Mon--- Val--- is annoying and as for A-------e. Well, it's as if they've washed their hands of it all. They only seem to be interested in the successes. Think they're happy brushing this mess under the carpet.
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Post by optymystic on Apr 1, 2021 8:21:36 GMT
Dropped by again yestie, as is my want. A substantial local truck was loading dried chip for delivery prior to returning with more locally sourced raw chip. All the fans seemed to be whirring noisily. According to the staff member present, things are looking good and the industrial estate is taking all the power they can generate. What I saw looks promising. It might even constitute a viable business. Whether it pays its debt is entirely another matter. I wonder by how many years the bond repayments will exceed the expected lifetime of the kit on which they hold debentures.
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Post by captainconfident on Apr 1, 2021 21:56:45 GMT
Dropped by again yestie, as is my want. A substantial local truck was loading dried chip for delivery prior to returning with more locally sourced raw chip. All the fans seemed to be whirring noisily. According to the staff member present, things are looking good and the industrial estate is taking all the power they can generate. What I saw looks promising. It might even constitute a viable business. Whether it pays its debt is entirely another matter. I wonder by how many years the bond repayments will exceed the expected lifetime of the kit on which they hold debentures. Oh  . I sold my mum's 5k at 60% of original value based on your previous post! However, I've lost all confidence in the management of this project so I'm happy to be out of it. The whole affair is so subsidy dependent and the environmental rationale so dubious that I'm not sure why I thought it was a valid project in the first place. Oh yeah, I remember now, this was about a one year investment originally. As restructured my Mum would be 106 by the time it matured.
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Post by moneyfornothing on Apr 27, 2021 17:23:14 GMT
Dropped by again yestie, as is my want. A substantial local truck was loading dried chip for delivery prior to returning with more locally sourced raw chip. All the fans seemed to be whirring noisily. According to the staff member present, things are looking good and the industrial estate is taking all the power they can generate. What I saw looks promising. It might even constitute a viable business. Whether it pays its debt is entirely another matter. I wonder by how many years the bond repayments will exceed the expected lifetime of the kit on which they hold debentures. Some interesting stuff on Companies House website regarding the history of this project...
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Post by captainconfident on Apr 27, 2021 18:20:50 GMT
Secondary market trading suspended. I want to buy you a drink, optymystic. |
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Post by optymystic on May 27, 2021 9:15:10 GMT
Secondary market trading suspended. How very decent of Ab*****ce to draw this to our attention!
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Post by moneyfornothing on May 27, 2021 20:53:02 GMT
Indeed!!
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Post by moneyfornothing on Jun 23, 2021 16:57:41 GMT
Secondary market trading suspended. How very decent of Ab*****ce to draw this to our attention! In fact, it looks like the company "M***** V*****" has been given notice by the "Registrar of Companies". Unless cause is shown to the contrary, the company will be struck off the register and dissolved not less than 2 months from 15/06/2021. Upon the company's dissolution, all property and rights vested in, or held in trust for, the Company are deemed to be bona vacantia, and will belong to the Crown. Publication date in The Gazette 15/06/2021... What does this me for Ab_____ce going forward I wonder??
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Post by optymystic on Jun 29, 2021 11:32:53 GMT
In the Absence of any communication from Ab*****ce, can we assume we are going to get a payment tomorrow?
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. I sold my mum's 5k at 60% of original value based on your previous post!