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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Comment by RonJadleron Feb 03, 2014 1:13pm
155 Views
Post# 22166406

RE:RE:RE:Chapter 11 vs. 7

RE:RE:RE:Chapter 11 vs. 7Thats because there was fraud at Poseiden..

approximately $95 million to $106 million (subject to detailed quantification by the Company) of the Company's $148.1 million in revenue for the 9 months ended September 30, 2012 should not have been recorded as revenue in the Company's financial statements

Also, Poseiden didnt have the asset base of TID.

If they sell all the gear then there will be between 10%-30% impairment depending on the nature of the sale.

My guess is that they will "sell" some of the assets to a CS owned special purpose entity that will rent the gear back to TID to operate its business.  In doing this CS will directly control the assets (it gives CS a direct security interest in them in case TID doesnt make the leasing payments CS can liquidate them easily).  In order to do this "sale" they will run an auction for other firms to participate so the court can ensure that they get the best/highest price.  If it is pre-packaged the whole thing (chapter 11) can be done in less then 60 days - typically 30-45days.
Expect that we will see some kind of upside participation for CS in the form of warrants or a dilution (hopefully minor).

I think that we will see much better then $0.11/share..  but we cant do a thing about it except sit and watch and know that management has significant equity skin in the game.

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