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Post by optymystic on Oct 5, 2021 14:40:02 GMT
The business failed because it failed to secure its revenue grants from Ofgem in a timely manner. It always was a subsidy farming operation. One of the company pie charts clearly shows the bulk of projected revenues to come from subsidies. To be fair electricity generation always has been characterised by a very strange pattern of subsidies, including subsidies to fossil fuel burning long after they became clearly insane about thirty years ago.. My issues are more with Abundance, the paucity of information and dialogue with its clients and the differences between the various bonds issued on behalf of this nest of companies trading between themselves.
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liso
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Post by liso on Oct 5, 2021 14:52:08 GMT
The business failed because it failed to secure its revenue grants from Ofgem in a timely manner. It always was a subsidy farming operation. One of the company pie charts clearly shows the bulk of projected revenues to come from subsidies. To be fair electricity generation always has been characterised by a very strange pattern of subsidies, including subsidies to fossil fuel burning long after they became clearly insane about thirty years ago.. My issues are more with Abundance, the paucity of information and dialogue with its clients and the differences between the various bonds issued on behalf of this nest of companies trading between themselves.Totally agree!
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Steerpike
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Post by Steerpike on Oct 5, 2021 20:02:38 GMT
The directors have been paid throughout the last 3 years. Investors have received nothing.
The directors say that they have invested £720k of their money in this enterprise.
Investors through the Abundance platform have contributed £4.5m, with the possibility of receiving £500k through the CVA so, being generous, say £4m net.
Investors and directors get an equal share in the "new" company. Abundance assert that this is a fair offer.
What am I missing?
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Post by optymystic on Oct 6, 2021 7:44:18 GMT
What you are missing is that his is a very small company with very few employees, even when it is operational. To a great extent, the directors are the business at least in the short run.
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Post by optymystic on Oct 6, 2021 13:57:54 GMT
The directors say that they have invested £720k of their money in this enterprise. Investors through the Abundance platform have contributed £4.5m, with the possibility of receiving £500k through the CVA so, being generous, say £4m net.
I've a notion there was another loan, the figure of £1.4 mn comes to mind, to one of the sister companies. Now if I am right and it has been known, the directors will doubtless insist that that was a totally separate loan to a completely different legal entity which merely happens to share a company address, directors and business operating premises. That would be horse s**t, because these companies are deliberately set up and designed to trade with one another at prices determined by the directors. Am I right, was there another loan and if so what happened to it?
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Steerpike
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Post by Steerpike on Oct 8, 2021 8:12:36 GMT
I suspect that the proposal may be accepted as many will perceive that they have Hobson's choice, however, 75% is quite a high bar when abstaining counts as against.
If the new plan succeeds the only party that is guaranteed to lose is the lenders.
After such a monumental failure of management the proposal represents an outstanding result for the directors, a pretty safe bet for S****d, fine for Abundance, and really bad for investors.
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Post by optymystic on Oct 8, 2021 10:52:41 GMT
It beggars belief that under these circumstances, M****w V****y CHP cannot land a lucrative and profitable electricity generation contract with a bung for keeping the lights and heating on.
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Post by optymystic on Oct 9, 2021 8:10:13 GMT
I've a notion there was another loan, the figure of £1.4 mn comes to mind, to one of the sister companies. Now if I am right and it has been known, the directors will doubtless insist that that was a totally separate loan to a completely different legal entity which merely happens to share a company address, directors and business operating premises. That would be horse s**t, because these companies are deliberately set up and designed to trade with one another at prices determined by the directors. Am I right, was there another loan and if so what happened to it? I see in earlier posts references to a sister loan.
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Post by optymystic on Oct 20, 2021 17:16:17 GMT
Just how long does it take to click on a web link?
Nearly 3 weeks ago I took Hobson's choice and clicked to agree to the proposed bale in. I've heard and seen nothing since. I wonder if some of the big players and some of the operators who have bought substantial quantities of debt at a discount are negotiating, I can't think otherwise, what there is to delay for, particularly as this appears to be an extremely propitious moment for electricity generators.
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Post by stan88 on Oct 20, 2021 17:45:50 GMT
Just how long does it take to click on a web link?
Nearly 3 weeks ago I took Hobson's choice and clicked to agree to the proposed bale in. I've heard and seen nothing since. I wonder if some of the big players and some of the operators who have bought substantial quantities of debt at a discount are negotiating, I can't think otherwise, what there is to delay for, particularly as this appears to be an extremely propitious moment for electricity generators.
You may be right, the vote is open until the 24/10 so we should know something early next week.
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Post by optymystic on Oct 20, 2021 18:16:05 GMT
Given the urgency, we might expect the company to move once it has cleared its 75% hurdle, so it doesn't need to wait, unless the votes in favour are not actually coming in.
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Steerpike
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Post by Steerpike on Oct 21, 2021 12:28:25 GMT
We haven't seen Abundance encouraging lenders to vote and so it seems likely that the proposal has been accepted.
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Post by optymystic on Oct 25, 2021 11:12:55 GMT
Still no news. Are they holding a recount? Have they run out of fingers? Or has there been a Trumpian attempt to overturn the result?
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Post by optymystic on Nov 7, 2021 12:17:48 GMT
I dropped by S*****c B******S P**K this morning on my way to the dump. The door was open, vehicles were present, the fans were whirring and there was even a smell of pine resin, though not quite as strong as I recall it. For the first time in quite a while there are real signs of activity.
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Post by optymystic on Nov 17, 2021 19:05:53 GMT
My inference is that Abundance investors now own a third of the company, but that their representative merely has observer status. I can see why such an arrangement would appeal to the existing directors and Strand Energy.
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