Should this be a concern for Knight's fans?

[Hanscholo]

Its been a concern since he took over. Frankly, i don't trust the bloke. He is a paper billionaire, very little cash flow, massive debts. Commodities prices have come down substantially as well.

Comes across to me as a massive gambler, and everytime he gets cornered he finds a way to get out by doubling his bets, and refinancing. He will either end up broke, or the richest man alive.

 

[Frederick]

Guess who was in the 3%!

 

[Chicken_Hunter]

guess who was in the 3%!

you

 

[Frederick]

Fail!

 

[The Showstopper]

you

Han I think he is referring too. Tinkler is going through exactly what all Billionaires are right now. They are not willing to have play things anymore that lose money. When a billionaire hears limited credit they go pale. Patinack is a far more expensive operation than our club and the new tv rights means Tinkler may only have to provide top up funds anyway. He is like a line of credit if needed. He knew that this tv deal was going to be huge. All he is doing is ensuring is that we have legitimacy and are not forgotten.

All will be fine. Fairfax have it in for him. He has the balls to gamble to make it bigger quicker ,whereas the snobs like Rinehart, who was gifted her empire by daddy Lang, take huge stakes in media and start to run the country. Love the fact he is a bluecollar Sparkie who took a massive risk and has landed on his feet.

That is the problem these people have with Tinks. He is wealthy but has a bluecollar mentality. He is just one of the boys but doesn't cop idiots.

 

[Hanscholo]

I am not death riding tinkler in the slightest. I wish him all the best. Certainly for the sake of our club him doing well is always what we want.

I understand too he was looking for cash to try and get the required loans together to buy whitehaven, and that is why he was looking to sell patinack, and probably why he decided he wouldnt worry about paying bills if he was about to sell it.

Not a great way to do business though imo.

 

[Chicken_Hunter]

Whitehaven shares have nosedived today because Tinkler withdrew his bid after the Due Diligence period. They now sit at around $3 a share... Almost half of what I bought them at. And I would imagine Tinklers worth just took a hit too. I emailed my broker and WHC is still a hold though.

I love tinkler for what he has done for the knights, but god he hasn't done my finances any good..

 

[Alex28]

BHP's issues around iron ore and concerns around development in China couldn't have happened at a worse time for you mate...

I wonder whether Tinky will make another tilt at a lower price...

 

[Alex28]

Fin Review reported yesterday that if his shareholdings in Whitehaven drop to $550 Million in value he could face a margin call. Current value $660 Million. Shit could start to get real...

 

[cram]

Fin Review reported yesterday that if his shareholdings in Whitehaven drop to $550 Million in value he could face a margin call. Current value $660 Million. Shit could start to get real...

What's that mean?

 

[Alex28]

Essentially his shares would have a lending margin against them - and given who he is and how key he is to the company it would be lower than the average shareholder - and if the debt against the shares reaches a certain point he would have to deposit money to the loan to ensure the debt stays within the lending margin. May be a tough task given he couldn't come up with $28 Million to buy into Blackwoods the other day.

He quite literally (allegedly) has everything hocked. AFR reported on Saturday when he borrowed $4 Million from Westpac last year he pledged as security a grader, a turn mower, a hay rake, a Toyota Kluger and a Ford Focus. Normally a bank would just take a company charge which would encompass those assets but not allocate a value against them, but to itemise items like that as security is getting kinda desperate.

Worst case is the banks take ownership of the shares and clear the debt and he loses the lot.

 

[Chicken_Hunter]

If he is indeed in Margin call territory, its worse than I thought. I didnt realise that he was that highly leveraged.

 

[Spot On]

May need a new broken Chicken. Seems like they enjoy the speculators???

 

[Nuffy]

In a way it would make perfect sense, the bloke has gone all in every single time, so why wouldn't he be betting the farm again.

For me the biggest alarm bell in all this was the reported $300M on stinking horses, the only people who are silly enough to do that are usually funding it with oil profits and rivers of money. Not a Muswellbrook electrician made good.

Anyway at the end of the day, he may trade out of this and be away again.

 

[cram]

http://www.theherald.com.au/story/292188/doctors-chase-knights-and-jets-over-debts/?cs=305

 

[Frances the Mute]

I love what his done for the Knights but boy he comes across as a real prick!

 

[Newie is God's Country]

Francis name a billionaire who doesn't have a PHd in being a prick at some point!

 

[Frederick]

Bill gates?

 

[Nuffy]

Things seem to be getting worse for Tinks.

http://www.theage.com.au/business/t...er-17m-deal-20120903-25agm.html#ixzz25RST1nKm

I hope that Mids has the forethought to commence contingency planning because if Tinks goes down, then so will major sponsors etc coupled with management and governance issues raring their head.

Its just plain messy right now.

 

[Frances the Mute]

When does our period to buy back the club expire for the $20 million? Might be worth at the very least having Tinks agree to extend that period for 12 months.