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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Comment by pennywyse2on Jan 26, 2014 2:53pm
166 Views
Post# 22135419

RE:RE:RE:RE:RE:RE:Halt leadind to trade suspension

RE:RE:RE:RE:RE:RE:Halt leadind to trade suspension
The way I read the press release is that the lenders have given a 10 day period for the company to file for bankruptcy protection in the US and Canada under the provisions of Chapter 11 and the CCAA respectively. They may want a couple of days to pay out the small unsecured creditors to make the filing less cumbersome, and obviously some time is required to complete the formalities. I assume they are working on the paperwork right now and the filing will occur sooner rather than later. That is why the shares will be suspended, the company is in a state of "bankrupt to be".

There is obviously a deeper problem with either the company's liquidity position, cash flow generation ability or asset values (or maybe all three) than has been disclosed. Management is lucky to be in Canada, if in the States they would be doing the perp walk in handcuffs and shackles.
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