Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Post by contragaloon Sep 04, 2013 9:43am
235 Views
Post# 21717106

dbaude, your report is excellent

dbaude, your report is excellentDown to earth and free of unrealistic expectations. You are right assesing the reasons that have the stock price so depressed. Tuscany has maxed every source of financing, the last quarter was the first one where bank debt (syndicated loan + revolver) didn´t grow, lenders were deaf to risk more money and Tuscany had to scramble to find cash to put the newly hired rigs back to work . Maybe Tuscany can find the cash for the payment due on Septembrer 15th, but the situation is dire to comply with the December payment. From my perspective, lenders are tired of Tuscany inability to collect the due AR  in high-risk countries as Ecuador and Gabon, situation aggravated by the deceiving actions of a quasi-rogue company that can go bankrupt before the arbitration panel gives its verdict. So Tuscany shouldn´t count with miracles and, again from my perspective, has four options available: refinancing (the best for everyone if lenders accept a long term fix), selling assets (difficult, the infamous HRT is trying to sell 4 rigs and 4 cranes in Brazil for 50M$), getting a capital infusion (with a great dilution effect on current shareholders) or risking a default in December. I hope to hear from Tuscany that refinancing talks are going well, otherwise the investors should buckle up their seat belts and be prepared for actions that could have a big dilution effect for current shareholders.
<< Previous
Bullboard Posts
Next >>