Wasps to miss covenant payments
Posted by: Tiggs (IP Logged)
Date: 03 July, 2020 15:30

As expected, but now able to blame the pandemic ?
[www.insidermedia.com]



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Re: Wasps to miss covenant payments
Posted by: Marlow Nick (IP Logged)
Date: 03 July, 2020 16:21

It does look good but just to correct your headline so far there are no missed bond payments. The press release acknowledged the bond would be outside the agreed convenant terms (EG debt, turnover etc) which isn't a surprise given the business has been on lockdown



Edited 1 time(s). Last edit at 03/07/2020 16:23 by Marlow Nick.

Re: Wasps to miss covenant payments
Posted by: Tiggs (IP Logged)
Date: 03 July, 2020 16:31

No need to correct the subject, happy to correct it if they make the payments on time, or early, otherwise they will have missed them.



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Re: Wasps to miss covenant payments
Posted by: SK 88 (IP Logged)
Date: 03 July, 2020 17:27

The last interest payment was made on time in May. The next payment is due, I think, in November.

I am not sure, but I think breaking the covenant means that a bond holder "could" demand immediate repayment of their bond? Can anyone confirm or deny that?

Re: Wasps to miss covenant payments
Posted by: tigersince74 (IP Logged)
Date: 03 July, 2020 17:32

That's my understanding SK. The last time it happened Wasps talked the bond holders into taking no action. The interest was paid in May.

The announcement triggered 3 trades resulting in the bond price now stands at 0.47 down from issue at 1.

Re: Wasps to miss covenant payments
Posted by: SK 88 (IP Logged)
Date: 03 July, 2020 17:39

It was flirting with 50p previously so that's not too bad a drop, reflecting this was a relatively expected announcement.

It is getting to the point of being an attractive investment though. Double your money from now to May 2022 ...

Re: Wasps to miss covenant payments
Posted by: melton tiger (IP Logged)
Date: 03 July, 2020 17:57

If Coventry City FC get promoted again they'll be able to buy all the bonds with their loose change...FACov will end up as their tenants or they'll facov back to the Sth East.

Re: Wasps to miss covenant payments
Posted by: Never In Doubt (IP Logged)
Date: 03 July, 2020 18:12

In the event of default, Wasps Finance has 14 days to remedy or the bondholders can enforce upon the security (e.g. they become owners of the ground and other assets but not the P shares). In short they seize the stadium and most assets.

If Wasps fail to remedy or restructure the debts then they would probably cease to exist and the P shares would be sold.

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