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Thanks for the info, oldhamtrader! Hopefully we can get in the .20 range per share. Last I checked back during the buyout, properties seem to be worth somewhere in that range.
Syncora Holdings Ltd. Announces Meeting Date and Record Date for 2019 General Meeting of Shareholders
02/13/20
HAMILTON, Bermuda, Feb. 13, 2020 (GLOBE NEWSWIRE) -- Syncora Holdings Ltd. (“Syncora” or “Company”) today announced that Syncora’s 2019 Annual General Meeting of Shareholders will be held on Thursday, March 26, 2020 at 1 pm ET (the “Annual General Meeting”). The meeting will be held at the offices of Debevoise & Plimpton LLP, 919 Third Avenue, New York, NY. The record date for determining shareholders entitled to notice of, and to vote at, the Annual General Meeting will be the close of business on February 20, 2020. A proxy statement containing additional information will be sent to shareholders in advance of the Annual General Meeting. The proxy can also be accessed on the Company’s website www.shlholdings.com by clicking the Investor Relations tab and by clicking the Proxies tab.
Being a knowledgeable sycrf investor, please let us know rockraider if you decide to get back in - thanks. I sold my non-retirement shares, but still have IRA shares. I didn't want to deal with any possible IRS issues, but don't think there will be anyways (after reading prospectus).
Congratulations to you too! It has been a long haul, but very, very profitable. Thanks again to the "old firemen" for giving me the heads up on this company several years ago, and the exceptional DD done by Denny and others!
With strong economy, I would think that liquidation would move along at a fairly fast clip... wonder how much volatility in pps will result...
From proxy: "The Company intends to treat any distributions made by the Company to the Shareholders in
accordance with the Plan of Liquidation as distributions in complete liquidation of the Company for U.S.
federal income tax purposes. Accordingly, any amounts received by a U.S. Holder (as defined under
“Certain Tax Considerations — Certain United States Federal Income Tax Considerations” below) in
complete liquidation of the Company and pursuant to the Plan of Liquidation generally will be treated as a
payment in exchange for such U.S. Holder’s Shares, with any gain or loss so recognized generally treated as
capital gain or loss to such Shareholder. There can be no assurance, however, that the Internal Revenue
Service (“IRS”) will not take a contrary position. In addition, there can be no assurance that the Company
will be able to complete the liquidation and dissolution of the Company in the manner and within the
timeframe required by the IRS. The IRS has indicated that it will not issue a ruling or determination letter
on the tax impact of a corporate liquidation under section 331 of the Code accomplished through a series
of distributions made over a period in excess of three years from adoption of the plan of liquidation. "
With 2,689,166 shares traded today (almost 10x avg vol), other folks are with you. Perhaps residual company worth more than first thought...
5.04 pps: looks like some are interested in residual company; volume pretty decent today, too.
From what I can gather, we will be getting a distribution of about of 4.767 in Jan. or shortly thereafter, and another distribution(s) later: thinking further distribution(s) will total about .25...?
Does look like NOLs are going to go unused, unless some unexpected deal materializes.
Looking almost a certainty deal won't be done until 2020, and then you add-on date of distribution... Looks like no tax liability for 2019.
Seems pretty certain that distribution won't be until first part of 2020. This would be good for taxes purposes IMO.
Right, like to hear more about stub company on CC and NOLs.
With the current Syncora agreement to sell, is it even possible (or profitable) for a hostile takeover offer?
I've noted a lot of volume of late...
In the original buyout agreement wasn't there something about a possible adjustment price? Perhaps this will bump takeout price a little higher...
Why would Mallinckrodt even bother to settle with Ohio counties now, if planning bankruptcy?
Bump in price and additional clarity in press release (especially about sale proceeds distribution) very nice! Be nice to monetize the NOLs - let's see.
"Syncora Holdings (OTCPK:SYCRF) amends its agreement to sell Syncora Guarantee to Star Insurance for $429M in cash, an increase of $36.5M.
Star Insurance, an entity organized by GoldenTree Asset Management on behalf of GoldenTree's managed funds and accounts, will assume all obligations of Syncora Guarantee under the pass-through trust preferred securities issued by Twin Reefs Pass-Through Trust.
Syncora expects to distribute substantially all of the cash sale proceeds, net of transaction-related expenses, as soon as practicable after the closing of the sale.
In addition to the sale proceeds, following closing of the sale, Syncora also expects to have assets, excluding any value attributed to its net operating loss carryforwards, valued at ~$45M-$60M, primarily consisting of cash and investments, certain non-cash assets of Pike Pointe Holdings and an 80% interest in Swap Financial Group LLC.
No assurance can be given that Syncora will be able to realize fully on the non-cash assets.
The amended agreement resulted from negotiations between Star and Syncora after an additional unsolicited proposal was received."
I'm from Missouri, so "Show-Me." During my years of investing, additional offers are a rare occurrence.
Perhaps after Sept 13, Syncora will tell us their plans for the cash from sale such as a special dividend. They will have 30 million left in the residual company, so that should keep them going for quite some time, if needed.
I've been wondering what Denny is up to, too. He maybe doing a little selling/buying, or perhaps he is checking/working on the possibility of a counter offer (companies, "big boy" shareholders, etc.). Like most of us, believe is also thinks company is worth more than 4.50, especially considering book value. Perhaps we hear something by about Sept. 13...
I think we need more news for that to happen, but may drift higher on low volume.
What the two of you say sounds great, if feasible without too many issues. I am not an expert in the business, but I am patient. I'd wait a few more years if we can get close to book value (7+).
Thanks for your knowledgeable input guys!
Seems "real value" is about 5 - 5.50, if you crunch the numbers (we have); see also Denny's Seeking Alpha article. As is the case always with Syncora, patience is a virtue.
Thanks for the info, Denny! I kind of doubt some other company will want to pay the termination fee, but there is always a chance. Based on current price to book values of the monoliners, the .57 value is not an outlier. It is higher than Ambac's current price to book value. That's interesting about the idea of using the proceeds from the sale to buy another company and to utilize the 300 million in NOLs. Do you agree with Syncora's handling of the NOLs in the deal with GoldenTree (2.6 billion to 300 million - is their thinking correct?). So if proceeds of sale are distributed to shareholders as a special dividend, it seems that would not happen until 2020, thus no tax worries until then. The only thing I see is a risk for the deal is if a major hurricane hits Puerto Rico again. Bonds have recovered very nicely. If PREPA bonds continue to recover, could an "adjustment" (as mentioned in the deal) be made to the upside?
Also, do you know why Syncora did not negotiate a termination fee for themselves, if GoldenTree walks from deal?
There was panic selling initially for sure, if not manipulation. I agree we will be priced appropriately as the months unfold. 4.87 seems about right: 4.50 plus the 37 million cash, and the NOLs and Detroit property as a bonus. I'm not in a hurry to pay the taxman, so I will wait until the cash is delivered into my account for my shares.
Price to book values of monoliners:
Syncora: .60 (for buyout price of 4.50, it would be .61)
AGO: .66
Ambac: .57
MBIA: .70
Even after the big fall, current price to book of Syncora is about in alignment with other cos. It is the current going price for the monoliners, and we don't know when, if ever, book values are going to go much higher.
Some of the run-up in Syncora from 4.50 to 5.30 was on low volume, too.
What will happen IMO:
A payday of about 4.50 pps for SGI, and then later a smaller payday from the sale of residual company and its NOLs, 32 million in cash, Detroit property, ...
What happens if Star Insurance terminates deal? Do we get some cash, too?
"Syncora has the right to terminate the agreement pursuant to the terms and conditions thereof and pay Star Insurance a termination fee of $15,700,000 plus reimbursement of Star Insurance’s reasonable expenses, up to $3,000,000."
Be nice if some other company stepped in (e.g., AGO) and upped the purchase price... probably just a pipe-dream though.
Is the 392.5 million going to be distributed to shareholders?
What will happen to stock? Will it continue to be traded with what's left of Syncora?
How much is the Detroit property worth?
What about the 32 million dollars (cash) in residual company?
Sounds like there will be 300 million of NOLs leftover with residual company.
Swap Financial Group LLC worth anything?
Syncora will probably try to liquidate SHUS, too. So we should get a pay day from SGI and then a smaller one from residual co; my guess anyways.
Would think it'd be valued at 4.50 + value of (NOLs and " In addition to the cash purchase price, after the closing of the sale, Syncora will have cash in the amount of $32 million and specified non-core assets currently held at SGI, including certain non-cash assets of Pike Pointe Holdings, LLC and an 80% interest in Swap Financial Group LLC."
Nice PREPA rally, and during hurricane season, too.
Besides AGO Denny, do you see any other company that might purchase Syncora? MBIA or Ambac might but it would be a bit of a stretch for them. Guess a merger or even a revese merger is possible, too (some way to take advantage of the NOLs...).
How much are the non-core assets that are marked as zero on balance sheet worth, such as properties in Detroit? Could they push book value north of 8...
CC: 05/14/19 08:30 AM EDT
7.54 BV - very nice indeed!
2nd Pocket Pivot chart pattern in a row recorded today!
Another pocket pivot chart pattern recorded today and finished at top of day's trading range!
Seems like that is the game plan. How about MBIA as a purchaser?
That's a big range you give for possible sale of the NOL... The NOL is our "icing on the cake!"
Lots of volume today but not much price movement.
It would be a shame, however, if we don't receive significant value for the NOLs!
Stock price speaks for itself!
I had listened to Fred make the comment about the NOL twice. Here is what he said verbatim:
"The priority is on the strategic alternatives, including the sale of either SHL or SGI. So for now, I just – to be clear, we’re focusing our full-time and attention on that process. We’ve also committed to the extent we have a successful transaction returning capital to shareholders. And I mentioned earlier, this is a process that involves reviewing a potential sale of either SHL, the holding company, so the entire group; or SGI, the operating company.
Only one of those two options would enable us to retain our NOL. We sell all of SHL. We’re not concerned with what we can or can’t do on NOL. So we’re orienting potential bidders on the sale of SGI in the first instance. So we’ll continue having, in the fullness of time, a constructive dialogue with our stakeholders about what we might do with the NOL, but for now the priority is on the sale of the company."
Flat base breakout today and Pocket Pivot on huge volume!
Excellent earnings call! Very nice the surplus notes are being paid off. Main focus now is selling the co. as mentioned by CEO Fred Hnat (doing excellent job by the way). Perhaps may take 6-12 months so tax bill may not hit until 2020.
Good move, gives stock more time to run...
03/07/19
HAMILTON, Bermuda, March 07, 2019 (GLOBE NEWSWIRE) -- Syncora Holdings Ltd. ("SHL" or the "Company") today announced that it plans to host a conference call at 8:30 a.m. on March 29, 2019, to discuss its GAAP financial results for the year ended December 31, 2018. A press release detailing this period will be issued after market close on March 28, 2019; at the same time, the Company's consolidated GAAP financial statements for the year ended December 31, 2018, and certain additional information relating to the financial results, will be made available on Syncora's website (www.syncora.com).
The call will be webcast via the Investor Events page of the Investor Relations section of the Company's website at www.syncora.com. Following conclusion of the call, the Company will post a transcript on its website alongside a replay of the webcast that will be available through 11:59 p.m. ET on April 30, 2019.
About Syncora Holdings Ltd.
Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company. Further information can be found on www.syncora.com.
Nice to see a Pocket Pivot chart pattern today after breakout from Cup and finishing in upper part of day's trading range.