The Evil Diaries: “This don’t change nuttin'”

Yesterday Madagascar Oil (MOIL) announced that the $5m due to be repaid on 6th October had been replaced by another loan for c. $21m. It comes from existing major shareholders and is a terrific vote of confidence in the company’s future. Of course it means that, absent a burst of enthusiasm for the equity, it will be these loan note holders who will command the share price. However, 5.5p is surely too low.

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I reproduce this morning’s RNS on APR Energy (APR):

“APR Energy (LSE: APR) or (“The Company”), a global leader in fast-track power solutions, today announces that it has received an extension from its banks for its next financial covenant testing date from September 30 to October 31 while the Company continues discussions with its banks regarding future financial covenant compliance obligations under its banking facility, as previously announced.  We appreciate our lenders’ willingness to continue to engage in constructive discussions regarding our future capital structure,” said Laurence Anderson, Chief Executive Officer.”

This should be taken to mean that APR is heading for a debt-for-equity swap and that therefore the share price should be materially lower than its current 70p. The reason for the current price is that the banks have given a month’s breathing space.

This don’t change nuttin’.

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I give up on Clear Leisure (CLP).

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TfL proposes that taxi drivers receiving orders through Uber should wait five minutes to allow less tech-enabled drivers to catch up. This principle should surely have been applied when fast food first appeared on Britain’s high streets. All deliveries should have been delayed… Well, I think you get the picture.

Finally, a chum bought a property deep in the country for £3m about a year ago but has been unable to commence a £2.5m rebuilding programme. This is because there are bats in the barn – perhaps 2,000 of them – to disturb a bat entailed getting a licence nine months ago and waiting for the period 1st October to 31st October to send in the builders. They have just one month to complete their endeavours in certain vital respects. Failing which they cannot be back on site until about 1st April next year. This is proof, if proof were required, that this country is governed by mad men implementing mad law. Believe you me, this costs money.