RE:RE:RE:TBE IS A GOOD BUYbojangle3 wrote: we all know you cant buy it now but if the oil prices rise to around $60 that should increase the bid offers substancially which could see a few cents for the common shareholders. I know we are last on the list but who knows. Debenture holders won't get the full amount of 85 mil. and leave us with nothing. The receiver wont allow them to walk away with the shop, afterall they are unsecured.
Lots of spam on this board now: the cyber-bullies are out in force, so we need to filter the discussion to relevant information. If the oil price goes to $60, bid offers would definitely increase. It is possible that the shareholders could get some money, if property values continue to rise, in a rising price market scenario. A rising tide, lifts all boats, even the ones that consume a lot of power, to keep their bilge pumps operating, because of so many leaks. Ultimately, the debenture holders are not entitled to the Company, but just their $85 million. If the oil price rebounds fast enough to get a sufficient bank-line that can pay down the existing line, and perhaps a couple property sales, it is plausible that the debenture holders could get their money, and the shareholders could get the remainder. But actually the debenture holders are only entitled to $85 million, so perhaps the bankruptcy was a way to keep them from grabbing the entire company, while waiting for the oil prices to rise, which would then give the shareholders a chance to recover some of their investments, in a future sale, when oil is back at high prices. (I highly doubt management were that intelligent, after they tried to steal the debenture holders investment.) If the company remains a going concern, the debenture holders are only entitled to their $85 million, when the debentures are due, in a couple of years. Thus it is possible that the company could come back, if oil was to rise to $60+, in a short period of time, and the shareholders could have more to gain. More plausible is the debenture holders take the majority of the company, and shareholders get a small percentage, then the value increases over time.