Twin Butte Energy Ltd TBTEF

Update

[mhastings]

Court date set for June 21 for final distribution and to dissolve the Receiver.  That’s it!

Receiver settled Alberta Finance claim for $153k. Let’s assume they also have about the same in cash on hand (a conservative guess on my part), that’s $300k. 

Ad Hoc has settled the Executive Claims. For how much I don’t know. My personal opinion was always that the executives had the stronger argument in law, even if it didn’t feel right. As such I’d expect the settlement to be pretty low, reflecting litigation risk for the executives (with reputational risk also being a wildcard). If the the successor companies (ie their current employers) also chipped in by topping them up that would also boost the recovery.  

To me it seems the value of the Ad Hoc group really boils down to this one claim. Say what you will about the Ad Hoc but without them there was a 0% we were seeing any money from the executive claims. 

Debenture holders paid for the Ad Hoc and if the recovery from the executives (or more accurately the amount not paid to them) exceeds those costs we win. If the recovery is less than the fees paid to the Ad Hoc, we lose (I accept the Ad Hoc probably provided a small amount of value elsewhere but not near enough to cover their fees). 

My expectation is we will get another half cent to 1 cent on the dollar. 

I’ll let you know the final distribution when the final report comes out. 

And ... to preempt the inevitable question about what shareholders are going to receive, the answer remains nothing. Shareholders don’t get paid until debenture holders get paid in full.  Since that’s not going to happen shareholders won’t receive anything.