Combination of tax loss and confidence loss sellin Shame on management for ever risking the company with the high leveraged buyouts. When a company does this, everything better go well on all fronts. Well unfortunately it has not for Tuscany. It began with the announcement of the Trinadad rig contract terminations, then very unfortunately the low lifes at HRT defaulted on their agreement for the two most expensive rigs the company owns....two heli-rigs tha cost the company a whopping $50 (they were a little stupid to buy these in the first place as a smaller company).
With the reduced EBITDA estimates came downgrades by analysts and then they paid over $5 million to re-jig their credit facility. Then the failed debenture offering. Then tax loss selling. Tuscany is a prime tax loss selling candidate as they have a lot of shares outstanding and their share price is down over 70% plus there are few buyers right now with the credit overhang,. They need to make some things happen on the utilization front as well as become creative on the credit facility reingineering front.