Twin Butte Energy Ltd TBTEF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:The Board of Directors - TBE New Board Appointment at AGM

[HCI_STEEL]

Scottie99 wrote: Pants, Rob and crew should have filed for CCAA Bankruptcy protection but they did not, which indicates there is more going on behind the scene that is not made public. The Lenders should have called the loans but they did not, which indicate they are aware of something that is not public!

I am not sure if TBE is insolvent or not since we don't have all the facts as a result of the above but a company is insolvent if it is under bankruptcy and advancing towards Receivership. TBE is not there yet and doubt if it would be with the positive oil price outlook!

I think you should go through the terms of TBE debenture very carefully before you claim that debenture would end up with 95+++ of the equity if a share conversion were performed. I think you give way too much credit to debenture than they are worth! I believe there is a clause in the debenture term that gives the company the option to delay interest payment in case of financial constraint. Also, they have the option to convert the debenture to shares on maturity based on some percentage of the share price! So it is not yet uhuru to think that would happen when things are still fluid.

We would have some measure of certainty after the AGM to determine the direction of the company! One thing is for sure, the share price has been pegged below 6 cents because of this stinky deal. Once it is struck down and board replaced, I believe we would know what the Lenders want to do with the default on the loans. If they agree to debt refinancing, the share price should rally along with the debenture that has also be pegged below 14 cents because of this stinky deal! How fast and far each would rally is anyone guess!

As you can see, we are all in this together and I prefer shares to debenture because of the rabbit they pull out of the hat when it comes to the clauses in debenture! You need to understand that TBE is different from Anderson and even Perpetual that recently did share conversion for their debenture and then share consolidation later, to get out of the hole. But in the case of Perpetual, everyone was carried along and so worked out well! So we need to see how TBE issue is resolved in terms of the debenture and if I recall the maturity date is December 2016, so there is still plenty of time after the AGM for things to happen! In the meantime, I would hang on to my shares like every Long, maybe pick up some more to average down and increase my position. It does not mean I don't care about money, it shows I am a high risk taker and look forward to the reward based on my due diligence! If you decide to stick with Debenture, that is your own kettle of fish and won't hold it against you because it is your money!

For now, let us send the fox away by getting rid of this stinky deal and the Board that brought it up, during the AGM, then we can get the chicken to come home to roost by seeing how the debenture would be treated in relation to the equity of the company!

Yes, they do...the formula is something like the average trading price in the 15 days before conversion (I don't recall and can't be bothered to look up the exact wording)...but look at WEQ on the TSX to see what incompetent mgmt did..converted ~70 million dollars of debs (~2 years BEFORE THEY HAD TO DEAL WITH THEM) into shares. So the company went from 39 million shares OS added to the ~555 MILLION shares for the current debs, ..and they have another batch for 2020. Morons basically wiped out existing shareholders. Then there will likely be a 100:1 reverse split, and shares usually drop further after a reverse split.

All comments are my personal opinion of mgmt.