ROD on the Ropes

Rodriguez Group SA - Halted trading today on Euronext Paris.

Again returning to receivership protection in April; the Group will this time not emerge and its assets will be liquidated. Todays action warns that the liquidation process is imminent.

Of all the Group's holdings the Shipyard in Golfe Juan is profitable, and then there is Camper and Nicholson International, which is by far the most recognized asset. It will be interesting to see these two parts of the whole play-out in open bidding.

The last annual report indicates that the French counterpart of the IRS may be focusing in on a €17mil tax exposure, isolated to CNI. So what's a Brokerage House worth today ??

https://europeanequities.nyx.com/sites/europeanequities.nyx.com/files/PAR_20140722_05581_EUR.pdf

Unfortunately this will be the last.

The Golfe Juan Shipyard - SAS G. RODRIGUEZ drew a handful of offers, including bids from Azimut/Benetti, Monaco Marine, and Industrial Marine & Holding. However Mr. Clause JOHANSEN has been awarded the right to obtain the shipyard from the Rodriguez Group. Price €2mil.

The yard had lost its lease. However, it is well likely that the new business owner will be able to come to terms enabling business to continue uninterrupted.

Camper and Nicholson International - drew two offers. Michael Payne proffered €10,000 and COLOSSEUM SERVICE SA posted €1mil. The tribunal directed the assignment of CAMPER and NICHOLSONS securities (999 shares) held by the RODRIGUEZ GROUP SA to COLOSSEUM.

COLOSSEUM will now litigate the €17mil. tax claim currently burdened on CNI. COLOSSEUM will work aggressively to retain the Camper and Nicholson name that Rodriguez did/does not own and is clawed back by its legal owner in the event of liquidation.

The complete judgment can be viewed through the link below:
ISSUU - TCC Ruling (ROD) 22 Juillet 2014 by GraziaMaritime

SYT reported the CNI sale today. Albeit late (two weeks), still the only yacht media to even mention the event. And, still yet no details reported. No mention, of the disparity in the only two bids €10.000 / €1.000.000,00. No mention that the winning bidder is a Swiss shell without assets and run by a single director with only used car experience and no yacht industry practice. And the lower bid came from the incumbent’s CEO. It would stand to reason that Mr. Payne holds the best possible insight into the Company’s operations and value.

The silence here is deafening. And, makes one wonder: for an industry leader like CNI to draw such values in bid - what could Merle Wood, Nick Edmiston, and the leadership at Fraser and Burgess be thinking of their own values.

I think your analysis is point on.

Considering the winner’s pedigree, I strongly suspect that he was ill prepared and knew little of what he was buying.

It is my understanding, that there has yet to be communication between Buyer and Company, and certainly no transition plan in place.

It continues as an unfolding story.
With a couple challenges ahead. There remains the tax issue, and the ownership of the name.

Of an odd note: the Cannes Tribunal wrote that the award to the high bidder was 999 shares. Yet all CNI corporate filings from as far back as 1972 to as recent as 2014 reflect a declaration and issue of only 805 shares. Furthermore in 2011; 50 of those shares were awarded to Jillian Montegomery, leaving the company with 755 capital shares.

The company has significant potential for growth. With no more than a better focused management, CNI could finally turn profitable.
A few glaring issues:
- A certain atrophy in the quality of the CA listings. Showing a marked decline in comparison to the other major houses.
- Outside of the CNI website: advertising is hardly as robust as competition.
- Yachtworld: CNI listing(s) of the same yacht(s) multiple times. Same yacht 2 different CNI Brokers, two different CNI prices. (someone is not paying attention)
- Awkward foot-print - three offices in South Florida, but no presence in: Russia, Mid-East, Far East, Mexico/South America

Let’s wish them luck.

A brief look at the numbers de Saintdo & Perignon posted. Not all red, in 2012 they turned 95K euros.