Twin Butte Energy Ltd TBTEF

RE:RE:RE:Gulf States Need a Higher Oil Price Now

[PetroExplorer]

Righand, Bastille is absolutely correct.  Actually, a plan was submitted at the end of August, but the TBE board decided to just throw the keys to the bank, to spite the debenture holders that stood up for their rights, while TBE management was trying to steal the company from them.  Not one attempt to negotiate, in any good faith.

This is how it can go down:

1.  Higher oil prices give more lending value on the properties, and more cashflow to pay down debt.
2.  A bunch of bids around $200 million, but nothing extra for debenture holders.
3.  The higher oil prices allow for a higher bank line.
4.  Debenture holders pass the hat, raise $20 million, get a higher bank line from different lenders, and take the company for themselves.

Alternatively, the next bidder pays $290 million, to pay off the bank and the debenture holders.  Debenture holders are in a good spot, if the oil prices can rise fast enough.

Ultimately there could still be value for shareholders too, just not very much.  But there are still tax pools that have some value.  So it is still possible, if the oil prices can rise fast.