RE:RE:RE:WOW 13 different parties tried to Purchase TBE Mar. 11 Oldfart74 wrote: pablo87 wrote: Btw, the Receiver has had the non-binding bids for almost 2 weeks and hasn't said a peep. If it becomes clear that the syndicate will be paid out, then the offers should be disclosed to the public/creditors as they should be voting on which one(s) to accept.
Pablo, you have to read the documents. First bids were due Nov 17. These bids are then reviewed and selected parties are invited to participate in round two - binding bids with deposit required by Dec 15. The judge controls the process. On what basis, do you expect to have any input? The Receiver was appointed by the banking syndicate and the Receiver's duty is to maximize recovery of funds for creditors - secured first, excess if any to the unsecured creditors. iIf any funds are left, The Receiver will resign and TBE will continue as a corporate entity.
That is correct: the key date is December 15th. The Receiver is not in the business to provide weekly updates. This is the time period when various poker players "interested parties" are holding their cards close to their chest. There will be communication back and forth with the "Dealer", who has an interest in maximizing their commission, where information will be exchanged. So don't be surprised if this drags on a bit longer, past December 15th.
The factor that would allow things to drag on, would be some kind of tangible OPEC production cut, that forces the oil prices up, and keeps them up. Then all asset valuations are out the window, as things are worth more, with a higher price forecast. So this could still play out a bit longer, if things can line up properly.
At the end of the day, the Debenture Holders are not entitled to the whole Company, just the $85 million that they are owed. So if prices can rise, and some deal can be reached to do some recapitalization, and keep the other lenders happy, this could still move along. The question then is who will be running the Company? We'd need to see some better oversight, and not just another golden-boy management team, trying to line their pockets with bonuses and salaries.
So in the meantime, we have to wait and see:
1. Will oil prices increase fast enough?
2. Will Debenture Holders make a credit bid, to take out the company?
3. Will another company make a bit for the assets, in combination with the Debenture Holders taking some paper, to take stock in a larger company?
4. Will there be other loans made, to allow the company to continue on, paying the Debenture Holders back in the future, to keep the company as a going concern for shareholders?
5. Is anyone from the former management team, trying to work a back-room deal with another foreign company, to pick up assets for cheap?
At the end of the day, the courts will keep an eye on this, to ensure things are done properly. There will be no trying to pull a fast-one on Debenture Holders, and offer them 14 cents on the dollar, and see if they would fold and take a bad deal, assuming that they were just a bunch of uneducated investors (like was done to the Long Run Debenture Holders).
It is also not unusual to get extensions to deadlines by the Court, if it appears that things are being done in manner, and in good faith, that more parties can benefit from restructuring. (Especially just before Christmas holidays, when things always move slower.) So for now, it is sit and wait for some news.