This is where again lack of work experience and lack.of understanding the market. A typical investor mindset.

What if these so called investors found out that a new vessel that costs USD50 miilion to build in 2014 is only worth USD5 million today in the market. That is the price that buyers are buying vessels at the secondary market. And it will stay that way until 2030.

Still waiting for Quarter Results? Hoping to rise for the occasion?

7 years to go or 28 Quarters to go. RM80 million net profit per Quarter optimistic assumption. That means RM2.24 billion in profits.

It is enough to pay off the RM12 billion debts (excluding interest)? Is it even enough if you sell off all the assets (apart) from the FPSOs?

Beggers belief.

Here is where people do not understand the oil and gas market.

If USD60 per barrel still warrants impairments, it goes to show that a high oil price doesn't mean there will be contracta. In fact, FIDs have ceased since 2014 even when oil was at USD80 per barrel last year.

A company that keeps insinuating about potential contract awards, about potential successful restructuring and legal cases are often a sign that is it going to be a dissapointment.

Thinking that since the outcome is going to be bad, might as well fool the market into thinking otherwise might sound good when the company has nothing to lose, apart from its reputation, whatever that's left of it.

Why are research reports 2 years+ behind the curve? Old news which do not help.

What is important is the actions to.take going forward. What are they? Can they work?

What is going to be the end-result of the restructuring negotiations?

Just a prelude to what will be announced.

https://www.justreadonline.com/2018/03/01/ananda-krishnan-poised-to-lose-us7bil-in-aircel-bankruptcy/

Where in the world did all of you get the impression that AK wants to keep Armada?

LOL!

Nothing new in UOB's assessment of Armada since we highlighted it nearly 2 years ago.

Even the maths look similar. The shortfall of RM5 billion!

Plagiarism at its best!!!

Old news but management, directors and shareholders never realised in the first place.

One thing the UO assessment is wrong though is that Armada will have ZERO contract awards forever.

To suggest that UOB collude with short sellers is a very serious accusation. Maybe your fingers was typing faster than your thoughts?

Why did UOB downgrade? Again, another lack of understanding of the O&G market.

UOB is a Singaporean bank, headquartered in Singapore. How many are aware that UOB was negatively exposed to the O&G market in Singapore? Or in Asian investor speak, UOB burnt its fingers?

UOB experienced this in Singapore a few years ago, so they are now "enlightened". They have heard it, seen it and now learnt from it.

Some said Armada will profit from debt and some said Armada will have debts reduced. Where in the world do you see companies profit from debt or have debts reduced?

Banks are not going to restructure the debts. Period. All would have to be paid within 7 years.

No matter if you change the status of current debts to long term debts, it will have to be fully repaid in 2026 or so.

But Armada doesn't have enough revenue to pay off the debts. All of its FIRM orderbook is unable to settle the debt of RM12 billion. Armada has a shortfall of RM5 billion incl. interests.

2 men and 1 woman from the management team is implicated in the gro55 s3xual misconduct.

The wife of one of the management team has taken matters into her own hands to stop the monstrosity from continuing.

Puts Harvey to shame for what these individuals have done towards others.

#me too

The WIFE of one of the management team went to Armada and trashed the office. Made quite a scene too. Caught the misconduct in action?

Hic!

Here is a life lesson for the uninitiated.

What makes you think there will be a debt restructure for Armada when the banks made AK lose USD 7 billion in India?

Ever since the departure of Basma, Armada was going to the junk yard.

Basma will never return to Armada.

From harping the 90sen with dreams, they are still here. Unable to analyse financials and market intel, they make the wrong decisions and cause others to lose $.

Some have left after being exposed and some remain, trying to been seen as an small cap investor when they continue to monitor and spread emotions to buy.

Tell your bosses on the 39th floor and the big one on the 44th floor that the game is over.

SC has already summoned the so called funder.

We have already warned that the SC Surveillance Unit is monitoring Armada closely

As we have said previously, 10sen is the price as it is way cheaper to privatise than to pay for a rights issue for the main shareholder.

At the end, it would be just AK, EPF as mainshareholder.

But that is after forcing banks to take a Rm5 billion haircut.

Banks have never been giving any extensions to AK for few years now, if you hadn't realised by now. India business USD7 billion loss is one example. Gone are the good old days. AK has no more credibility.

10 to 15 sens is the price of Armada now.

These are the same persons that have insinuating the 90sen to1.20sen TP for the past years when Armada was 70sens and above.

All the hype until 50sens, they were still singing the same tune. And now at 15sens, they are still at it.

Stop pretending to be an investor or a shortie.

Your ruse is over.

Ah ha, The AK spy has revealed itself here.

So, this corporate finance person is insinuating that AK would be using funds to invest into Armada's next plan.

Why should the rakyat invest in something that has a 6 year life with a 6.75% return when the rakyat/investor would have to pay 500% markup to acquire it in the 1st place?

This is not a perpetual investment income like the retail industry.

Go back to your bosses on the 39th floor and tell them to stop milking the rakyat.

SC Surveillance Unit is all eyes on Armada's trading at the instruction of AK.

Caveat emptor.

Here is another example of ignorance of the OnG market, even when it is close to home. What makes everyone think that Petronas will engage Armada when Petronas has never been a customer; Petronas has never engaged Ramada for anything. Why should Petronas do so when is has its own related sister companies to support their OSV needs?

Armada has a Rm21 billion order book for the next 7 year i.e. revenue for the next 7 years. Out of this Rm21 billion only RM 8.2 billion will be net cash from operation.

Outstanding debt is RM 12 billion excluding interests of RM1 billion.

That is a RM 5 billion deficit.

No matter how you restructure the debt, all of it would have to be settled within the next 7 years. That is a fact. No bank is going to extend beyond the guaranteed revenue period.

Now with no sales team, no tender team, no BD team, all Armada is doing is living off existing contracts.

Plus, with gro55 5euxal misconduct case, Armada is doomed.

Caveat emptor.

Of course, sell non core assets to pay for debts.

Nobody makes money off AKs back. He has the price
around 15 sens as we have predicted.

Now for the PN17.

Here is another example of ignorance of the OnG market, even when it is close to home. What makes everyone think that Petronas will engage Armada when Petronas has never been a customer; Petronas has never engaged Ramada for anything. Why should Petronas do so when is has its own related sister companies to support their OSV needs?

Armada has a Rm21 billion order book for the next 7 year i.e. revenue for the next 7 years. Out of this Rm21 billion only RM 8.2 billion will be net cash from operation.

Outstanding debt is RM 12 billion excluding interests of RM1 billion.

That is a RM 5 billion deficit.

No matter how you restructure the debt, all of it would have to be settled within the next 7 years. That is a fact. No bank is going to extend beyond the guaranteed revenue period.

Now with no sales team, no tender team, no BD team, all Armada is doing is living off existing contracts.

Plus, with gro55 5euxal misconduct case, Armada is doomed.

Caveat emptor.

Here is another example of ignorance of the OnG market, even when it is close to home. What makes everyone think that Petronas will engage Armada when Petronas has never been a customer; Petronas has never engaged Ramada for anything. Why should Petronas do so when is has its own related sister companies to support their OSV needs?

Armada has a Rm21 billion order book for the next 7 year i.e. revenue for the next 7 years. Out of this Rm21 billion only RM 8.2 billion will be net cash from operation.

Outstanding debt is RM 12 billion excluding interests of RM1 billion.

That is a RM 5 billion deficit.

No matter how you restructure the debt, all of it would have to be settled within the next 7 years. That is a fact. No bank is going to extend beyond the guaranteed revenue period.

Now with no sales team, no tender team, no BD team, all Armada is doing is living off existing contracts.

Plus, with gro55 5euxal misconduct case, Armada is doomed.

Caveat emptor.

Ever since 2015, Armada has not been a going concern. Why is it reported 2 years too late by Armada? Why it is reported 1 year after Pearlwhite?

Why.did the auditors continue to put it as a going concern?

We have highlighted Armada issues for the past 2 years with facts derived from document disclosed by Armada.

The disappointing part was that the board and management of Armada did not notice these issues until it was too late. Incompetence.

The further decision and actions of the board and management subsequent to the memo further highlights this incompetence.

On a side note, a lot of investors here didn't too as they lack the necessary understanding and application of finance, lack industry knowledge and more glaringly, the lack of real world work experience. Hence, the incorrect judgements.

The track record of these investors are so dim that they have cause massive losses to those who follow their advice.

We wish to advice that these investors have no intention other than to make profits for themselves and do not care about the fate of Armada and do not care if you incur losses as a result of their advice. Caveat emptor.

The rakyat has borne a lot of Armada losses and this will not go unnoticed. We urge the relevant government agencies to conduct an immediate investigation and take necessary actions to put the perpetrators to jail.

Morel, there is no more Business Development, Sales and Project team. So how?

How is the top management putting up with the gro55 5exual misconduct?

Is there a r3cording of it?

Any individual(s) who has committed gros5 5exual misconduct and abuse has no place to lead the Armada.

Why hasn't it been disclosed? Is there a cover up?

From RM2.20, Armada has lost 95% of its value.


No sales, no project, no nothing. RM21 billion is unable to cover RM12 billion debt.

How much longer is the investing community going to be misled?

Following the internal memo, Armada has taken the decision to close the Business Development, Sales and Project departments. So, there will be no more bidding for future projects.

Armada will live off the existing contracts till the end. It is just an operating company now. No more.fancy news of pursuing contracts. Highlighting upcoming awards too is of no use when a Armada cannot get financing anymore.

The entire team pursuing the case for Claire against Woodside has also been shown the door after the internal memo.

So, Armada knows the outcome of this case as the postponement was one last ditch attempt to resolve the issue. The payout is a disspointment

Allegations of gross 5exua1 m1sconduct and abu5e occurring within the management team have surfaced. Why is the board turning a blind eye? What actions are going to be taken to address this?

Why is one of these individual still at the helm of Armada?

It is no wonder if the management is engaged in these activities, Armada is in the dumps now.

Oh, we forgot to mention that the entire team pursuing the case for Claire against Woodside has also been shown the door after the internal memo.

So, Armada knows the outcome of this case as the postponement was one last ditch attempt to resolve the issue.

Following the internal memo, Armada has taken the decision to close the Business Development, Sales and Project departments. So, there will be no more bidding for future projects.

Armada will live off the existing contracts till the end. It is just an operating company now.

Highlighting upcoming awards is of no use when a Armada cannot get financing anymore.

However, allegations of gross 5exua1 m1sconduct and abu5e occurring within the management team have surfaced. Why is the board turning a blind eye? What actions are going to be taken to address this?

Why is one of these individual still at the helm of Armada?

It is no wonder if the management is engaged in these activities, Armada is in the dumps now.

Following the internal memo, Armada has taken the decision to close the Business Development, Sales and Project departments. So, there will be no more bidding for future projects. Armada will live off the existing contracts till the end. It is just an operating company now.

However, allegations of gross 5exua1 m1sconduct and abu5e occurring within the management team have surfaced. Why is the board turning a blind eye? What actions are going to be taken to address this?

It is no wonder if the management is engaged in these activities, Armada is in the dumps now.

At 15 sens a share, Armada is worth less than USD200 million. And to privatise it, USD80 million is needed. It is cheaper than to fork out monies by the main shareholder for the rights issue.

Once private, the risks of "Carlos Ghosn" impact would be greatly reduced. Then, proceed to the next step, which will be disclosed later.

No new sales, no projects, no nothing. Just ride on existing assets to pay debts. And it is still Rm5 billion short.

Hic!

Rm21 billion confirmed sales for next 7/8 years.

Actual operations profit from Rm21 billion is around Rm9 billion.

Rm9 billion has to pay for everything under the Gross Profit line.

And this doesn't include principle debt payments of Rm12 billion.

Q results don't matter. And when oil industry recovers in 2030, Armada's assets are nearly 20 years old. End of life.

Hic!

Given our past posts about the other sister companies in India and Sri Lanka, the main shareholder is in no position to be able to successfully negotiate with banks anymore.

Pearlwhite do not own Armada shares. No conflict of interest. DO YOU?

Actually a lot of people should be fired, and this includes the investors here in I3 who are unable to analyse Armada's woes since 2 years ago.

Incompetence of the first order.

At the closing price of 17 sen, the market value is RM998 million.

Major shareholders and EPF/Amanah/Malaysian funds hold in total approx. 60% of Armada. So, RM400 million is all that is needed to take Armada private. Less than USD100 millon!

What is so exciting about a speculated subsea contract with a 3% gross margin? Immaterial.

Remember all debts are secured against the FIRM contracts. All would have to be settled within 7 years, no matter how you restructure it. Sad but true.

The analyst covering Armada should also be fired. Can't even spot the revenue threshold before it couldn't cover the debts.

Useless and inexperienced. It is so easy to change target price wothout consequences.

The Edge? A little too late to to report.

We reported all these issues more than a year ago and coming close to two years. And it all came true.

The Chairman, Executive Directors and long serving Independent Directors are to resign.

Entire Top Management including IR to resign.

Auditors PWC to resign.

for incompetence to the highest level.

Good question - Why did the CEO leak the memo? What was its purpose?

Debt restructuring has made no progress. Banks refuse to accommodate.

Look like the strike price is 15 sens thereabouts.

D-day. Announcement today?

Going the PN17 route will give Armada the haircut it needs. But be warned, Armada will not even pre-qualify for any new projects!

Who wants to sleep with a man/woman who has AIDs?

Armada needs RM4 billion to meet the debt principal amount deficit and another RM1 billlion to meet the corresponding interest.

RM5 billion haircut from banks is needed at the very least.

Selling assets is inmaterial.

The Chairman, Executive Directors and some Independent directors ought to resign immediately for this fiasco. Also the entire current management team.

PN17 announcement coming.

Just in case of the pipeline Private trust, we highlughted it months ago.

A no go long ago.


pearlwhite wrote

May 31, 2018 10:16 PM | Report Abuse

With the new Government, financial re-structuring based on the "iMDB" model where a company is broken into different parts (i.e. separation of liabilities to one company(s) and assets to other company(s)) to increase perceive value is highly debatable at this point.

Financially, it is sound and comply with existing financial and international laws. Socially, it is deemed corruption. Looks like Armada cannot take this route "anymore".

Running Armada is decided by the main shareholder and that includes determining its share price. Not for banks to decide.

Shareholders are going to throw the banks into the sink for a forced debt cut before going private.