Eros International/ Media Bond Plunges to £ 53

Comments

  • edited August 4
    This is the culprit! I don't really know how serious it is but it doesn't look good. Does anyone have any thoughts on the situation?

    https://erosstx.gcs-web.com/news-releases/news-release-details/erosstx-files-extension-its-fiscal-2021-annual-report-provides
  • the shares are barely down on the NYSE (pre market). seems like an over reaction to me
  • edited August 4
    I got out of ERO1 a very long time ago, it seems some sort of restructuring is being signaled, who knows where that will leave ERO1, I expect the bankers will get paid first, so as always it's a gamble.
  • Also got out many years ago. A short seller tip sheet had raised concerns at that time about the company and its accounting practices. Oliver Butt who used to issue commentary on Retail Bonds had pretty much panned this issue at that time. Share price was $20 5 years ago - it's now $1. To me things don't look great especially the comment about accounting standards. It will depend on whether JPMorgan et. al. decide to pull the emergency stop cord. Sorry for existing holders - hope it turns out better than it appears at the moment. Definitely don't recommend anyone tries to buy in to this.
  • Not looking good certainly. When STX agreed to merge with Eros did no one think of doing some due diligence then?
  • ERO1 up to nearly 60p to buy now. Apparently trades were done in the 20's and 30's.

    I don't hold, haven't got a clue what these bonds are worth, but it is interesting watching.
  • Get out while you can
    Debt Restructuring Update
    The Company is considering its options under various debt arrangements, including the £50 million 6.50% UK retail bond that matures on October 15, 2021, and the requirements to deliver audited financial statements by July 31, 2021.
  • edited August 10
    Consent solicitation released this morning

    They want to extended the due date and increase interest to 8.5%.

    From previous announcements they hope their other (bank) debt can be covered by selling the STX film library. STX are no doubt rueing their merger with eros last year.

    I can't see any mention of how far they plan to extend the due date.

    I bought back into these on the basis that I thought STX were fairly solid and would have done proper due diligince before merging. It appears that was optimistic.



  • @Ciaran , yes you would have thought that STX would have done a really deep dive on EROS, there was plenty of public information on them for starters. In cases where debt cannot be repaid, the first option is to see if a debt repayment extension can be agreed, if the banks think they can get their money back they prefer to do it sooner.
  • IPF did similar and appeared to pick up. I will hang onto my small 2k holding of Eros, and vote for the extension and 8.5%;..... keeping fingers and toes crossed !
  • Some good news friends for Eros Bondholders ! Share price in NY jumped 34 % on announcement that company has signed a deal with Amazon Prime on expanded Amazon output deal , full story on Seekingalpha.com
  • Thanks for that anilkumar57
  • Welcome Colin, it is all in our interest !
  • Like Colin I have voted for the extension. I intend to keep mine to maturity. (I bought the 10k holding in 2017 at 67p.)

    II offered the following options:
    Option 1: Take no action (Default)
    Option 2: Vote Consent Granted and receive a fee
    Option 3: Vote Consent Denied and receive a fee

    While in the corporate action notice it said,
    “Bondholders may be eligible, on the terms and conditions set out in the Consent Solicitation Memorandum to receive an amount of GBP0.50 per GBP100.00 in nominal amount of the Bonds (the Voting Fee). The payment of the Voting Fee is conditional upon the passing of the Extraordinary Resolution and implementation of the Proposal.”

    I don’t think I have seen this sort of thing before.

    This idea might be a good template for use in local government elections to increase the voting percentages ;)

    Roger.


  • Wasn't this done with IPF. As regards local government /national voting; more people might vote if we had something/ somebody worth voting for !!
    Back to Eros anybody have any update ?
  • Mini-major entertainment studio Eros STX Global (NYSE:ESGC), halted in the last hour for news pending, is down 8.8% on heavy volume following an update about its UK retail bond amendments.
    The amendments are pinned to the company's £50 million in 6.5% retail bonds maturing on Oct. 15.
    The company had asked bondholders to extend the fiscal financial statement delivery date from July 31, 2021, to Nov. 30, 2021 - and to extend the maturity date of the bonds to April 15, 2023.
    But a bondholder meeting held today was adjourned for lacking a quorum of at least 75% of the bonds outstanding.
    An adjourned meeting now set for Sept. 20 will call for a quorum of at least 25% of bonds outstanding (and a successful proposal will need 75% of those votes cast). The company now expects to satisfy that quorum requirement.
    Last week, the company received an NYSE noncompliance notice over not meeting requirements for timely filing of its annual report and maintaining a minimum trading price.
    Now Read: Eros STX Global soars 35% on expanded Amazon output deal
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