RE:RE:RE:RE:RE:RE:ForbearanceI wonder what a postisive outcome of the HRT Arbitration would do (if anything) for the current price levels?
https://tuscanydrilling.com/html/investor_relations/documents/Tuscany_Q3-2013_FINAL-web-Nov22.pdf
Tuscany International Drilling Inc. 2013 Third Quarterly Report Management’s Discussion and Analysis:
In Brazil, the Company was working for a customer, HRT, who, in June and July 2012, terminated early drilling contracts on
two rigs. The contracts provided early termination penalties totaling $20,000 in favor of the Company, which have not been
accrued into the consolidated financial statements and are currently subject to arbitration. HRT is delaying all payments
regarding demobilization fees due to the Company until the arbitration is resolved, which is expected to occur during
the first half of 2014. Included in accounts receivable at September 30, 2013, is $11,195 related to demobilization fees
recorded by the Company during the second half of 2012. The Company has provided for $2,200 of bad debt expense in
general and administrative expense for the three months ended September 30, 2013, in relation to this receivable. Under
the terms of the fourth amendment to the credit agreement, any and all amounts recovered from HRT will be used to
reduce outstanding debt owed to the bank