Twin Butte Energy Ltd TBTEF

RE:RE:RE:RE:Why do you guys think tax benefits come with shares?

[Oldfart74]

kasparovisme wrote:

cigar and oldfart,
 I think you guys have lost site of the "forest through the trees"
Q2 came out after Reignwood proposal, and before BIA. Not following you on why you feel its still relevant,  within current   HOC  PSA situation at hand?
 
Details of sealed information will be withheld and released unless opposed anytime after April 18- up to May18,2017
 
 oldfart ,
Your statement that tax pools went with assets, In my opinion this would not be true in and of itself  , so  it requires additional info and I don’t want to type that much so ergo a link
 
https://www.connvaluation.com/caseStudies/Valuation_Tax_Losses.pdf
 
 It is my belief that the tax pools potential, offer a benefit which could entice HOC toward the purchase of shares. Caveat being, TBE needs to be liability free, and/or have a quantifiable and manageable amount of liability (ie CRA),
 There is no incentive for TBE to do this unless they are led by a carrot. ($), plus someone to hand hold them through it which could be receiver. via HOC ( ie needs to be in the form of a restructuring settlement of debts) . Companies can survive BIA but only if they have something of value.

 see my previous hypothetical tax pool value post for background

Either way HOC will be fine, as asset sale/value stands on its own merits. Benefit of this BIA method is that they can force debs to take less than 100%, whatever is leftover from SISP asset bid, or get a little more if they agree to settle while still being able to give something to shareholders for TBE shell which would be required to utilize tax pools.  They already have all components necessary for a successful transfer of tax pools, (ie assets employees etc..) they just need the shares.
Remember any management or employees who own shares and have effectively been working for HOC since effective date would love to get extra $ for shares, it  would improve employee morale, and save on bonuses(lol) 

Opps outa time gotta go

I previously posted the wrong link re tax pools.  Section 2.11 of the PSA (Third Report of Receceiver) provides that purchaser and TBE will sign a joint election under which the maximum tax pools available under the Income Tax Act will be transferred from TBE to purchaser.