Administration question

[daveyeff]

Just a querie from anyone clued up enough to know. If we do end up in administration, what happens to the shares people have and the ones people have bought? Are they null and void? And would you be reimbursed on ones you have bought?....anyone know?

[FilthyBloke]

Just a querie from anyone clued up enough to know. If we do end up in administration, what happens to the shares people have and the ones people have bought? Are they null and void? And would you be reimbursed on ones you have bought?....anyone know?

It’s been mentioned in another thread but basically the shares are not tied to Royal Mail as such. If Royal Mail went into administration it’s suggested that the shares may go up in value as the letters side of the business which isn’t making money would be gone.

[noggin1969]

Shares are in IDS

[postieblueshirt]

Nobody really knows the answer to this at the moment only guess work.

[clashcityrocker]

Just a querie from anyone clued up enough to know. If we do end up in administration, what happens to the shares people have and the ones people have bought? Are they null and void? And would you be reimbursed on ones you have bought?....anyone know?

Sky News understands that should the union call new strike dates, the loss-making company's board would not seek a drastic response by declaring an insolvency, as has been reported, at least in the immediate future.

[rambo1]

Just a querie from anyone clued up enough to know. If we do end up in administration, what happens to the shares people have and the ones people have bought? Are they null and void? And would you be reimbursed on ones you have bought?....anyone know?

Sky News understands that should the union call new strike dates, the loss-making company's board would not seek a drastic response by declaring an insolvency, as has been reported, at least in the immediate future.

And so........as you were....on we go.....strike days and no deal. Don't care what happens now as long as something does!! Getting bored of this mexican stand off.

[clashcityrocker]

The very final crunch day might be soon.

I prefer the comment on the CWU Facebook page.
It is 2050. All the posties are now dead. The CWU has promised an update soon.

[sindba]

Your shares would be effectively worthless.

You wouldn't be able to buy or sell them any more, because all legal power over the company would rest with the administrator, and their job is simply to sell company assets to pay off its debts.

In our case the administrator would be the Government, so shareholders might get some compensation, but that would be a political decision.

[sindba]

To put it another way

Administration is just bankrupcy for a worthless , debt ridden company.

And as a shareholder, YOU own that worthless debt ridden company.

[redlen]

If a company has an administrator appointed, all shares are suspended.

Debenhams is a prime example when they went into administration.
They left shareholders with nothing and even wiped out Sports Direct.

Put simply,

Any administrator will continue to run Royal Mail as a going concern because of the USO obligation.

The administrator also has the power to tear up contracts of employment to bring the business back into profit

[postieblueshirt]

If a company has an administrator appointed, all shares are suspended.

Debenhams is a prime example when they went into administration.
They left shareholders with nothing and even wiped out Sports Direct.

Put simply,

Any administrator will continue to run Royal Mail as a going concern because of the USO obligation.

The administrator also has the power to tear up contracts of employment to bring the business back into profit

And we have the power to not sign any new contract and go on to better things if the contract is not to our liking

[redlen]

You can do that but you will make yourself intentionally redundant/unemployed with no redundancy payment

[postieblueshirt]

You can do that but you will make yourself intentionally redundant/unemployed with no redundancy payment

Yip that's what my wife did with Asda 20 years service but didn't sign.pride got in the way I'd be the same.

[portadown]

The Government have to give them the authority to go in to administration and then the government will look deep in to were all there profits have gone

[TopperGas]

Your shares would be effectively worthless.

You wouldn't be able to buy or sell them any more, because all legal power over the company would rest with the administrator, and their job is simply to sell company assets to pay off its debts.

In our case the administrator would be the Government, so shareholders might get some compensation, but that would be a political decision.

Surely the shares are now held in IDS not RM, given that DK just spent £m's buying another 1% of the (IDS) company it's unlikely he feels they'll be worthless any time soon.

It's looking like the shares will plod along at around £2 for now.