Category Archives: Premier Exhibitions

WSJ:More Details on Premier Bankruptcy Filing

1bigisland(WIkipedia)
1bigisland(WIkipedia)

Some interesting facts from Lillian Rizzo’s blog entry at Wall Street Journal on the Titanic bankruptcy filing:

1. Premier owes owes $12 million to unsecured creditors.
2. The company states that just the sale of four artifacts from the French Collection could fetch $10 million or more at auction.
3. The money raised from the sale would be used to pay off creditors,help the shareholders and keep the company afloat.

Source:Premier Exhibitions Floats Sale of Titanic Items(Wall Street Journal,22 June 2016)

Premier Exhibitions Update:Wants to Monetize 1987 Artifacts

PremierExhibitionslogoIn a recent report to the U.S. Securities & Exchange Commission (SEC), Premier Exhibitions reported:

“On June 20, 2016, the Company filed a number of motions in the Bankruptcy Court. Among the motions filed was a motion seeking permission to sell a portion of the Titanic artifacts awarded to the Company pursuant to a 1993 French administrative decree, which are from time to time referred to as the 1987 Artifacts in Company filings. At this time the Company does not know when the Bankruptcy Court will rule on this motion, and does not know the likely outcome of the motion.”

Since those artifacts are not part of the salvage award decision in the U.S., those stringent conditions imposed for sale do not apply here.

Source:
Premier Exhibitions (2016, June 20)Form 8-K
https://www.sec.gov/Archives/edgar/data/796764/000117184316010750/f8k_062016.htm


Premier Exhibitions Seeks Reorganization in Bankruptcy Court

PremierExhibitionslogoPremier Exhibitions, the owner of RMS Titanic Inc and operates many touring exhibitions that includes Titanic:The Artifact Exhibition, has filed for Chapter 11 bankruptcy protection. The company states in its press release:

United_States_Bankruptcy_Court_SealDespite aggressive efforts to manage these issues, the burden of the
Company’s lease in New York City and other legacy business issues remain obstacles to the Company’s ability to conduct business. Faced with these obstacles and upcoming lease payments due, the company has
determined that it would be in the best interest of its stakeholders to
file for reorganization relief under Chapter 11. Operating under the
protection of Chapter 11 will provide the company’s most important
vendors with assurances that they will be paid. Further, the company
intends to create a restructuring plan that should allow Premier to
emerge as a stronger business. Further, as part of its restructuring
efforts, the company will continue to assess the productivity of all
assets, review additional cost-cutting initiatives and explore strategic
alternatives to maximize the value of the business.

Well this is both good and bad news for shareholders. Shareholders have seen the value of their shares fall (and suffered a double bounce as well)considerably. But the voluntary move to reorganize the company in bankruptcy court means it can reduce the liabilities causing it considerable problems. It also means they must open their books up for the court to examine (which will use independent auditors)to determine what the assets and liabilities are. Secured creditors will get paid but how much will be determined by the court.

Of course there is one big asset namely the Titanic Artifact Collection. And the bankruptcy court will now be handling its disposition. Interesting to see how that plays out down the road.

Sources:
1.Premier Exhibitions, Inc. to Reorganize Under Chapter 11 (Nasdaq
Globe Newswire, 14 June 2016)
2. Premier Exhibitions in Chapter 11 bankruptcy (Atlanta Journal Constitution, 14 June 2016)

Information:
Bankruptcy(U.S.Courts.gov)
Learn about bankruptcy (Chapter 7, Chapter 13, and Chapter 11) for consumers and business owners.(Nolo.com)

Premier Exhibitions Stock Woes

PremierExhibitionslogoStock charts are boring to look at unless it is a company you are invested in. And those who have invested in Premier Exhibitions, which owns RMS Titanic Inc and Titanic:The Artifact Exhibition, have to be wondering whether the company is going to survive. Over at  FranklinIndependent.com, they took a look at the stock performance and had this to say:

If the $0.45 price target is reached, the company will be worth $270,600 less. Double bottoms are rare but powerful chart patterns. The stock is down 23.31% or $0.152 after the news, hitting $0.5 per share. About 12,100 shares traded hands or 206.25% up from the average. Premier Exhibitions, Inc. (OTCMKTS:PRXI) has declined 40.37% since October 22, 2015 and is downtrending. It has underperformed by 42.63% the S&P500.

Yikes. The market is not liking Premier Exhibitions right now and I bet a lot of shareholders who have seen their stock value drop are not happy either. Patience will not last long for the new company president if they do not see their stocks going up in value soon. Usually it means lawsuits and lawyers with accountants rummaging through documents.

Source: Is Premier Exhibitions, Inc.’s Fuel Running Low? The Stock Formed Bearish Double Bottom Chart Pattern  (franklinindpendent.com,31 May 2016)

Update(s):Premier Exhibitions

PremierExhibitionslogoWhen we last checked in on Premier, the acquisition of Dinoking had been completed and Daoping Bao was now the chairman. In a recent filing to the U.S. Securities & Exchange Commission, Adam Bradley reported a letter sent to the Premier board of directors. As his firm has over 5% interest in the company, he expresses what he expects from the new management.

“I believed then that fixing the current operations and monetizing the assets would be difficult but achievable. However, I feel that the current muddled strategy, a lack of progress with execution, inadequate reporting, and poor communication to shareholders have driven Premier off track. I believe these factors are also contributing to the severe depression in the market valuation of our company. It is my objective to drive accountability and at the same time assist leadership in restoring value through a more effective strategy.”

He wants the board to end unprofitable exhibits that have resulted in lost revenue and impacting the company’s ability to have sustained profits. He argues that getting rid of expensive leases, though a challenge, ought to be pursued. And he hopes to work with the company to achieve these ends.

The letter is part of the 13D filing made by AJB Capital to the U.S Securities & Exchange Commission.

AJB 13D filing
https://www.sec.gov/Archives/edgar/data/796764/000119312516519003/d123837dsc13d.htm

AJB Letter to Premier Exhibitions Board
https://www.sec.gov/Archives/edgar/data/796764/000119312516519003/d123837dex99b.htm
– – –

A recent 13-D filing by Premier discloses the identities of the merger group and the terms they will operate under. Missing is the disclosure information for Mandra Forestry Limited, a British Virgin Islands registered company, that owns 8.3% of the stock. What is missing is the source of their funds. “We have requested on numerous occasions but not received confirmation from Mandra Forestry Limited” states the filing. Perhaps it means something or perhaps not. It is curious that this information has not been forthcoming from them.

SEC EDGAR 13D filing
3/31/2016
http://www.sec.gov/Archives/edgar/data/796764/000114420416091888/v424531_sc13d.htm

Buena Park Titanic Exhibit Gets Reprieve Till April 17

Movieland Wax Museum, Buena Park, Nov. 1963 Photo courtesy Orange County Archives
Movieland Wax Museum, Buena Park, Nov. 1963
Photo courtesy Orange County Archives

The Titanic and Bodies exhibitions at the former Movieland Wax Museum in Buena Park, California has gotten a reprieve. It was scheduled to shut down in January but the new owner is finding getting all the required approvals taking longer than anticipated. So the current owners, the City of Buena Park, contacted Premier Exhibitions and asked them to stay till 17 April 2016. This is good news for Titanic fans wanting to visit the exhibit in Buena Park and gives more time for Premier to locate a new home for the exhibits at Movieland.

According to Orange County Register, the announcement that it was closing in January brought in record numbers of people. The announcement that was being extended till April has seen reservations soar and January is nearly sold out. While the rent for the facility was a bargain $1 a month, Premier had to spend thousands to upgrade and maintain the facility. When the new owners finally take over, the venue will be modeled after the Butterfly Wonderland park in Scottsdale, Arizona.

Further information about purchasing tickets for Buena Park can be found at the Premier Exhibitions website.

Source: ‘Bodies’ and ‘Titanic’ exhibits to stick around Buena Park until April
(Orange County Register,11 Jan 2016)


Titanic Musings On 2015

Shutterstock
Shutterstock

Did you hear that the new Star Wars movie has toppled James Cameron’s Titanic off the throne? Hard to miss it since the entertainment media reminds us with screeching headlines announcing this important fact. There are major rumblings in the Middle East, the Turkish prime minister sees Hitler’s leadership as a positive role model, Russia is getting nasty as well but as long as the new Star Wars movie topples Titanic, that is more important.

Down under Clive Palmer’s dream of Titanic II appears moribund. There is still nothing going on at the Chinese shipyard and no formal contract has been signed for its construction. We did learn that if and when it should launch its first stop from China is Dubai. And Dubai has a serious interest in Titanic thanks to developers wanting to make a movie theme park. China is doing better than Palmer in building their Titanic that will be permanently docked at a theme park. You can stay aboard and even experience what it was like as it sank thanks to a sinking simulator. Oh and you can, for a fee, learn what cremation is like first hand (sans the real heat of course). Palmer may not be moving forward with Titanic but the Chinese are.

Premier Exhibitions saw major changes in the past year. Revenues have been mostly flat overall but costs were taking a big chunk of change. One proposed merger deal fell through and recriminations are now headed to court over that. So they sought out Dinoking and its chairman to try and turn around the company. Also they would like to sell the Titanic artifact collection but the price is so astronomical that it is hard to see anyone putting up that money. And it comes with a big sticker shock in the form of permanent judicial oversight from the U.S. Federal Court in Virginia. My guess is that in the end it will either be sold to a government entity of some kind or a consortium either in the Middle East or China. China and Dubai would seem the logical choices and will not be surprised if Beijing steps in to acquire the collection.

Public Domain

Titanic exhibitions continue to draw large crowds wherever they appear. People are fascinated by the story. Belfast has certainly seen it become a big boost for tourism and business. Titanic Belfast continues to draw them in and recently the Nomadic was made part of the exhibition. The fully restored tender is as close to the real Titanic as we can get. It took a lot of dogged work to get it out of France and then even more work to properly restore it. People are so used to how quickly we can turn out things these days but old seafaring vessels require a lot of special work. You do not splash on a new coat of paint and call it a day. It takes hours of patient work to take out the rot and replace it with new material and replacement parts generally hand crafted. Not unlike San Francisco’s historic cable cars. The original factories have long ceased operation and San Francisco has to make all its replacement parts to keep the cars going up and down hills at about nine miles an hour.

Titanic though is steaming on. It sank in 1912 but is still quite alive and well in different forms. People are learning the real story, which is good because there are plenty of lessons from Titanic we can draw from. Pity is that historical forgetfulness often means those lessons are lost but they can be relearned.

Premier Exhibitions Obtains $5M Loan

PremierExhibitionslogoPremier Exhibitions has filed a required Form 8-K with the U.S. Securities and Exchange Commission detailing the loan agreement. The total loan sum is $5m and requires the company take out $1m before 10 Dec 2015. A second draw of $1m is available upon written notice before 18 Dec 2015. And a third draw of $1m can be obtained before 31 Dec 2015. An additional $2m is available but only at the discretion of the lenders. The unpaid amount accrues a 12% annual interest rate and can be prepaid at any time (but requires you pay 105% of principal amount). Yanzi Gao, agent for the lenders, signed the agreement. According to the papers filed with the agency, the names of the lenders are: Jihe Zhang, High Nature Holdings Limited, and Lange Feng. Repayment is required by 1 Aug 2017.

Sources:
Premier Exhibitions, Form 8K, 9 Dec 2015
Premier Exhibitions, Exhibit A-Form 8K,9 Dec 2015

Buena Park Titanic Exhibition To Close Permanently January 3, Looking For New Home

The Titanic and Bodies exhibitions at the former Movieland Wax Museum in Buena Park, California is closing for good on 3 Jan 2016. The location has been sold and will host a butterfly and hummingbird atrium that will open in 2017. Meanwhile the search for a new location continues. The new location not only must have room for the exhibits but also for a gift shop. Premier is hoping to find a location in Southern California as attendance at Buena Park was one of the highest for U.S. locations.

Source: Bodies, Titanic Exhibits Hope To Stay Local (Orange County Register,8 Dec 2015)