RE:RE:RE:RE:Bankruptcy: Tuscany Int’l Drilling seeks sale to lenders
To rapid_fire_: That is the question, isn't it? Will there be money? I'm leaning toward yes, for the reasons I've stated in my previous posts and the fact that cancelling & reissuing existing stock is harder to do when assets outweigh debts. That's a tool usually used when debts outweigh assets, as a means of generating new funds, because the stock is already valued at 0 or negative. Taking away stock valued at 0 is one thing - taking away equity with real value in order to transfer additional wealth to lenders already repaid in full by sale of assets - not as easy.
If you're asking how much, I'm hesitant even to guess. A conservative shot-in-the-dark would be 0.25 per share, considering the major debts and the last number we have for assets. Closer to a dime if they have to sell rigs at clearance prices. 0.60 if they have a buyer lined up who wants to take over the business as is. $5 if they accidentally drilled into a vein of platinum last month. Whatever.
My point is that all we have is a jumping off point based upon the most recent balance sheet, and that gives us about a quarter per share. But I think we've all come to general consensus that the inner circle is privy to facts we don't have. These x factors will push the remaining assets per share around considerably. What are the claims of the smaller vendors likely to be? Have there been any developments on the accounts receivable front? I can think of at least a dozen others, but they've already been listed, hashed over, scrutinized, re-listed, thoroughly trolled, and then listed again in previous posts.
And then there's the possibility that a deal exists, but really doesn't involve us. Between Walter's shares, the block of stock from the African sale, and the stock acquired by the major lenders thus far, they may have enough for a controlling interest. I'm not as concerned that this means they could make a decision without us to sell/acquire the company (we should be so lucky) but rather the smaller details involved in this, and what a majority shareholder could potentially dictate during this type of Chapter 11 proceeding. That's a very narrow, precise and rare circumstance in which I can't claim any experience. Anyone out there able to contribute on that level?
Btw, just typing "YOU'RE ALL SCREWED" and including neither reasoning nor citations does not count as contributing on that level.