Tuscany International Drilling Inc T.TID

I believe Judge Gross will be favor to us - see Fisker case.

[khaledb]

https://www.olshanlaw.com/resources-alerts-Client-Alert-Distressed-Investors-Appeals-Pending.html

n Fisker, a case arising out of the bankruptcy of premium plug-in hybrid electric vehicle company Fisker Automotive Holdings, creditor Hybrid Tech Holdings had, less than two months prior to the bankruptcy filing, purchased for $25 million in a U.S. Department of Energy auction, secured debt owed to the Department of Energy with a face amount of approximately $170 million. Thereafter, Hybrid and Fisker reached agreement for the purchase in bankruptcy of substantially all of Fisker’s assets using the debt so purchased in a credit bid of $75 million plus $725,000 in cash, of which $500,000 would be used to fund a distribution to unsecured creditors. Following Fisker’s bankruptcy filing, the Unsecured Creditors’ Committee found a competing bidder, Wanxiang America Corporation, which offered $37.5 million in cash.  The Committee then argued before Judge Gross that the purchase should be decided by competitive auction in which Hybrid’s credit bid should be capped at $25 million, the price paid for the $170 million secured debt in a secondary purchase.   Judge Gross agreed with the Committee, declaring the law is clear that where a court finds “cause,” the right to credit bid is not sacrosanct.  Judge Gross noted with concern the speed with which the Hybrid credit bid was to have occurred, and ruled that “cause” to cap the credit bid existed where as a result of an uncapped credit bid “bidding will not only be chilled without the cap; bidding will be frozen.”  In doing so, Judge Gross also observed that “Wanxiang is also prepared to increase its offer in an auction.”  Judge Gross’s ruling also cited an issue raised by the Committee over the validity and the extent of the collateral package securing the Department of Energy loan that Hybrid acquired.  This too argued in favor of the cap.  Hybrid’s appeal of the ruling is currently pending before the District Court.

[Fullblast]

Very good catch Khaledb ! We will forward this to counsel...

[perdikaoilgas]

Great catch indeed! Thank you khaled!   Yes, the Counsel must get aware of this asap.