Twin Butte Energy Ltd TBTEF

RE:punjabi

[PUNJABI]

In most case when it comes this close to loan maturity I would treat it as default & basket case. Still not sure about TBE. They might still pull a rabbit out of the hat in the last minute.


The situation of TBE was not that bad.  There were much better than quite a few other companies.  But the banks pulled the plug &called in part of the debt. Either they come up with another source of money or get a delay they will be in default.


I do not think that banks money is at risk. The debt is not too big & can be covered by the distressed sale of assets.  I am very surprised that they were not able to negotiate a new loan, get extension or find a buyer by now. I was expected a merger or takeover.


It is hard to make a call. Anything can still happen. Maybe they have a buyer but do not like the deal & may take the deal as a last resort.


In case they do not have a buyer & the loan is not extended then they can always get creditor protection & get some extra time to find a buyer or lender.


Owning dentures is relatively better than equity. If they survive you get interest on the face value of the denture & not the present heavily discounted price. Debentures holders come before equity holders.


If this company is liquidated then equity holders will not get too much in the present market conditions.