Adventis (ATG) shares are up 81% today at 0.5p in decent volumes. I am sure that Lucian Miers et al are adding to their shorts. But whoever is buying is a total loon. Just a reminder of the facts.
On 13th June the company said it was formally trying to sell its one asset – its technology unit. If it is sold the company admits it will not get enough to clear its bank debt, let alone its other liabilities.
Today the company said that its bank (Lloyds) had sold the debt owed to it on to RCapital Partners – a private equity turnaround specialist. We do not know the price. R Capital may have two motives.
a) it paid a pittance for the debt & reckons the technology unit will be sold for more than a pittance.
b) It will now call the debt and seize the technology division ( plus any other asset in the PLC) as it values the tech division at more than what it paid for the debt.
My money is on b. Either way at some stage soon Adventis will be left with no assets and still having a stack of liabilities. As such it remains worthless. Whoever is buying the shares is bonkers. Do they think that RCapital is a white night out to rescue equity holders? If so think again. Fair value for this stock remains 0p.
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