RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Credit bidding and common shareholders
Way to go, RHertig! Coming through with the legal docs like always. This was a gold mine. justsomeguy, thanks for shooting out the emails - now we're on record. I also sent one to Tuscany's official contact address, as I see you have, too. Thank you also for pointing out the key part of the filing: the debtors are trying to take it all. This is radically different than the picture painted by the company's published financial statements. Have you seen the list of debtors they submitted? Over 500 entities. Planet Coffee? Really?
And why does Walter Dawson appear on the list of debtors? Doesn't that mean he gets paid even if other shareholders don't? Could that be construed as a conflict of interest? For that matter, why is Margaret Dawson listed as a creditor?
According to what I'm seeing, the involved parties have already voted on many substantive issues, including approval of "Superpriority of post-filing intercompany charges," which sounds a lot like a provision to sop up any capital which is accidentally left over. The actual hearing looks like it will be wrapped up day after tomorrow.
At this point, TID has not posted notice of any bidding procedure, as is normal and required. The fact that the lenders suddenly do not foresee capital in excess of debt would be consistent with cramming the value of assets down, acquiring at fire-sale prices if they can manage to be the only bids on the table, and essentially allowing us to buy them a couple dozen rigs on our dime. Such a plan would not be possible with open bidding.
I'm going to put this out there for discussion: shall we try to contact the court and make this fact known, demanding normal disclosure and solicitation of bids? Not being officers of the court, we may lack standing, but we will at least be on record. We may likely spend a lot of the future scrutinizing what we did or should have done in the next 48 hours.