Ogconsultant, you worthless cyber-bully, a credit bid is ok!Quit coming on this bulletin board, when you have no interest in this stock, and only have some bizarre, perverted, sadistic fetish, of trying to kick people down, then they have lost some money! Get a real life, instead of trying to intimidate and bully people online, because you couldn't stand up to a person, in the real world!
Go back to your NWX bulletin board, and take your dividends while you can, before those well's production rates start to drop off, because they are probably just depleting off some fractures, in the middle of the Australian outback.
A credit bid is allowed. Let's review the creditors, for your simple mind:
1. Banks: secured creditors, that want their money back
2. Debenture holders: unsecured, that want their money back, and want more than 14 cents on the dollar
3. Accounts Payable: these would all normally get paid, if the evil banks didn't thrown TBE into receivership, after the shady management threw the keys to the bank, and thus thwart the normally incoming Accounts Receivable, to stop going to the Accounts Payable
So who can make a Credit Bid?
1. The banks can bid $205 million, which would have to be beaten by someone else, before they can take the assets
2. The debenture holders can bid $205 million + 1$, which would give them the assets. Accounts payable would have to team up with the debenture holders, in a deal.
3. Anybody else, has to pay $205 million +$85 million, plus the Accounts Payable. But the Accounts Payable would be paid by the incoming Accounts Receivable, that is included as part of the assets. Something would have to be worked out.
Don't forget that there is cashflow generated from the assets. This allows someone to borrow some money, against the assets. So not all the $205 million has to be repaid, if some of it can be financed.
It is ironic that a deal was put forward to the TBE board, suggesting a conversion of accounts payable and debentures to shares, along with a rights offering, and that was ignored. Let's hope the oil prices can rise, and more value obtained from the assets, in the next while, and the company can keep going. Minus the shady board that threw the keys to the bank, without any attempt to restructure.