Tuscany International Drilling Inc T.TID

Credit bidding and common shareholders

[Fullblast]

Anyone knows what credit bidding implies for us common shareholders ?

[RHertig]

 The creditor bids X amount of debt owed to them on an item instead of cash. This puts a floor on what the item sells for. Otherwise other companies will come in and try to steal everything for pennies. See my other post with a link to credit bidding.   If I read this right TID only put some of their subsidiaries into bankruptcy so they sell the equipment in those only for cash to

[khaledb]

IMO .. TID own all others subsidiaries shares..... They will be considered like assets. but you are right that the PR is little bit confusing Other than Tuscany USA, none of the Company's other subsidiaries are parties to the Chapter 11 Proceedings or the CCAA Proceedings

[onthecase]

RHertig, fantastic link you included earlier, very insightful. And yes, Tuscany opted for Chapter 11 in US and Canada, but none of the South American units (the operations units) were included in the filing. I'm hearing words out there about TID asset's not being equal to its liabilities, and/or CS removing assets to a different corporation without having to give value. But I'm not

[Fullblast]

Rhertig, I would imagine that the news of TID's assets going for bidding is already out to all potential bidders.. news travel fast in this world

[Fullblast]

Sorry, my last post was to Onthecase

[onthecase]

See, personally I'd like to know exactly what that process entails: specifically, who does the notification for this sort of bidding, and whom exactly are they required to notify? I just can't help noticing a very large (millions of dollars large) disincentive for CS to notify any more parties than are absolutely required. So the question of who/how many are required may be the crucial

[justsomeguytrading]

Unfortunately I do not know anyone in this space.  I did however speak with Lorance Pasiechnyk last Thursday afternoon.  He is the CEO of Simmons Edeco oilfield services.  Lorance confirmed at that time that he was working on finalizing a deal for the 2 heli rigs from TID and subsequent to the purchase, the rigs would be moved to PNG. I was upfront with him, indicating I

[dogtoobad]

In general, the bidding process is controlled by a Court appointed independent Receiver Manager, likely the current Restructuring Officer. Be mindful that the Company has walked down this path recently in the last round of Strategic Alternative Process, i.e. don't expect a premium. The RM will conduct several rounds of bidding and will update the Court on a regular basis. This would indicate

[onthecase]

dogtoobad, nice assessment, clear and concise. I too am looking for the 'leftover' amount at the end of the food chain. The flip side of this logic is that if assets exceed liabilities by so much as a penny at present, then every additional dollar at which assets are valued translates to an additional dollar straight to shareholders. Which is why I'd like those involved in setting up

[RHertig]

 Is it possible they wanted to sell the Heli rigs and a junior creditor was blocking it. So Tuscany and CS prepackaged a chapter 11 to sell just some of the equipment. Then CS can accept that sale without agreement by the junior.  I wonder if they want to liquidate this company or just sell unused rigs to get to 100% utilization. I can't believe Walter would just give up without a

[Fullblast]

I also noticed on Monday that the Support agreement wasn't on sedar. Though it was odd. It's not on TID's website either. As a strategy, we could forward the agreement and the info on bidding to CEOs and public relations officers of companies in the oil & gas sector listed on the TSX, Dow Jones. We don't have to reach every single company. Word will get around.

[onthecase]

We're thinking alike, Fullblast. This is the first material fact that puts my hair on end. Filing a PR referencing a restructuring plan - remembering to do that part - but forgetting to publicly file the plan itself, as required? That's the kind of mistake that's hard to make. Thus far, sales of assets have been conducted privately, and this whole Ch 11 process has been completed

[Fullblast]

What's really strange Onthecase is that many journalists who've been writing about TID over the past few days seem to have had a look at the agreement. From where ? I don't know. Anyways I will start gatherring emails and I will update the board.

[justsomeguytrading]

Onethecase/fullblast - good ideas. Email sent in regards to Agreement Sent: Tuesday, February 04, 2014 2:00 PM To: Walter Dawson ([e-mail]) Cc: '[e-mail]'; '[e-mail]'; '[e-mail]'; '[e-mail]'; '[e-mail]'; 'whistleblower

[RHertig]

Is this what you were looking for? https://delawarebankruptcy.foxrothschild.com/2014/02/articles/bankruptcy-case-summary/tuscany-international-drilling-inc-files-for-bankruptcy-seeks-to-reorganize-debt-in-chapter-11/

[onthecase]

Way to go, RHertig! Coming through with the legal docs like always. This was a gold mine. justsomeguy, thanks for shooting out the emails - now we're on record. I also sent one to Tuscany's official contact address, as I see you have, too. Thank you also for pointing out the key part of the filing: the debtors are trying to take it all. This is radically different than the picture painted

[sailpgd]

Is a judge going to say okay to all this when there are clearly some red flags?