Tuscany International Drilling Inc T.TID

The Smackdown

[onthecase]

No, sailpgd, not if we have anything to say about it.

Here it is, one custom-made anchor to drop today for a class-action attorney to latch onto at a later date:

Greetings Your Honor,

I represent a group of concerned shareholders in Tuscany International, a company currently before the court to negotiate restructuring under Chapter 11 protection. As part of that process, Tuscany has made clear in prior press releases that it will conduct a bid process to generate buyers for equipment. Toward that end, their press releases refer to a Support Agreement which states the rules and procedures for the bid process, posted publicly on SEDAR.

Despite company assurances to the contrary, such notice was never published. Our investigation has revealed no solicitation of any bids, nor even any existing mechanism which would allow such bids. Far from soliciting third parties to participate, thus generating fair value for the assets to be liquidated, Tuscany management seems to have settled on a single buyer and gone to some lengths to discourage any others, though this is contrary to their published plans and to the stated intent of the Chapter 11 filing.

The end result appears to be a deal in which Tuscany’s creditors are allowed to assume ownership of the company at an artificially arranged low price by failing to file the required notice or solicit bids per management’s earlier public statements. Tuscany’s most recently released financial statements show assets of over $580,000,000 and total liabilities of $365,000,000 even including liabilities of business units since divested. After release of these statements, Tuscany has since sold a number of drilling rigs which, according to numbers they have released, brings total debt closer to $200,000,000.

This $380,000,000 difference represents, in effect, equipment purchased for the pre-arranged creditor/receiver directly out of shareholder equity with permission neither solicited nor granted for such transference of funds.

We request an order that the involved parties fulfill the required actions of public posting and solicitation of bids, and that time be allowed for them to do so before further judgments are ratified by the court. Also, that any judgments previously rendered in good faith which would impede such actions be rescinded. Further, this will allow us time to ascertain how Walter Dawson, CEO of Tuscany, has now appeared on the list of creditors to be paid. Also why his wife Margaret, no official connection to the company, now also appears on this list of the company’s creditors.

We thank Your Honor for your time, for considering this matter, and for allowing us to go on record with these concerns this twenty-fourth day of February, 2014.

Sincerely, etc. Please comment. With the group's approval, I'll send it off tonight.

[rivergreen]

That's fantastic with me  Great Job onthecase!!!

[Fullblast]

This looks really good Onthecase !. You really are on the case. I don't have anything to add. Have you shoed this to a lawyer who may have some ideas ?  If not, I think that the earlier it goes off the better. Proceedings are moving at the speed of light. Scary. Thank you for what you do !

[sailpgd]

Looks good expect today is the 4th of February not the 24th. Thank you for all that you are doing. Don't we need a few people to represent the shareholders at the bankruptcy proceedings? I would be more than happy to go. 

[onthecase]

Thanks, just caught that. Also, amended the fourth paragraph as follows: This $380,000,000 difference represents, in effect, equipment purchased for the pre-arranged creditor/receiver directly out of shareholder equity with permission neither solicited nor granted for such transference of funds. In transferring these funds without consent for the benefit of pre-selected receivers, we believe a

[Fullblast]

Great. Also, I have no idea how this works. Do we need counsel ? Do we have to go there physically ? Do you need a list of shareholders ? I can't go to Maryland, but I would gladly give you my name and coordinates.

[onthecase]

Sailpgd or others who may be in the Delaware area, please let me know if you will be stopping by the courthouse and I'll email you a proper copy of this document. I'm out west, so won't be able to deliver in person. I've hunted down the judge's email address . . . circa 2007. I will call the court tomorrow and see if they will accept and deliver a fax, but faxes can turn a bit

[pennywyse2]

The only problem is that you haven't bothered to read the declaration that Tuscany's Chief Restructuring Officer made to the court in support of the Bankruptcy Petition.  In that document he states that the amount of debt owed to prepetition lenders is $204 million and that based upon current valuations the lenders are considered to be UNDERSECURED. Do you understand what that word

[RonJadler]

In the filing to the court, maybe call into question the legitimacy of the chief restructuring officer given that he was forced upon the organization by the lenders who's interests are a rapid and outsized return at the expense of the shareholders.   His independence is questionable and we could assume that he has an ongoing and beneficial relationship with CS.. Beneficial to him and CS

[onthecase]

pennywyse2, I have, in fact, bothered to read the entire document, and yes, I do understand the what undersecured means. It means that the creditors lent x dollars, secured against equipment, but now that they are being paid by sale of that equipment - sale to themselves - they feel that the buyer (them) will only pay the seller (also them) far, far less than market rate, and so they need to be

[Fullblast]

Onthecase, check out your private inbox. I sent you my details.

[RHertig]

We need to retain legal counsel and request to submit our own plan. We can sell this company whole. Even if it is for an assumption of debt and stOck in the aquireing company.

[RHertig]

Can we set up a conference call amoung ourselves. I have half a million shares. Two years wages. We have a lot among us on this board.

[Fullblast]

I'm open to a conference call. I have 145 000 shares.

[khaledb]

Ok for conference call  ... I have 500 000 shares

[RonJadler]

Im good with a call - what are we trying to determine? I'd be open to help filing a claim or send the judge a letter.. but not sure that I want to sink money into attorney's fees.

[sailpgd]

I'm down for a call. I will be able to report live from the scene tomorrow.

[Jay8989]

I'm in with 200'000 shs.  No idea what happens with our money... What does all this mean concretely? Best J.