RE:Second report from reciver is outBobTheKnob2 wrote: The second report from the receiver is out and has been uploaded to the Receiver's website. In there is included correspondence from the Ad Hoc Group who have indicated a willingness to do a pre-emptive restructuring within 7 days. This was denied, however the Receiver has indicated a willingness to entertain a restructuring.
However, the sales process should begin tomorrow (if it did not begin already when the court order was given). There is a court order dated Oct 11 for the sales process to begin which is also located on the Receiver's website.
The deadline for Phase One restructuring or bid proposals is Novemeber 17.
Here are some links:
https://cfcanada.fticonsulting.com/TwinButte/docs/Receiver's%20Second%20Report%20(w%20appendix%20A%20&%20B)_Oct%207,%202016.pdf
https://cfcanada.fticonsulting.com/TwinButte/docs/CAN_DMS_104414000_v1_Order%20(Approval%20of%20SISP).pdf
It looks like an extra two weeks has been gained, with the November 17th bid date, which could give more time for the higher oil prices to arrive.
As mentioned before, it is not in the best interests of shareholders, to give up the company to a creditor, without a thorough review of all options. So it is understandable that they wouldn't want to go with a preemptive bid, by the debenture holders. The maximum value to go to the debenture holders is $85 million. The courts need to see what the fair offers are, and then there could be some haggling with othe restructuring proposals.
Not sure what to make about the proposed financial adviser by the Ad Hoc group, not wanting to make a formal advisor proposal. Perhaps they just wanted to go with a restructuring, and not worry about the hassle of trying to find other buyers. The fact that CIBC is in there, should be reasonable enough.
Commission on a sale is to be 0.9% of the aggregate value received. So some extra money goes out the door, but that's life, if they can actually get a reasonble bid.
Right now, they are likely making cashflow, and have shed some overhead, and maybe are actually trying to optimize some production. So while interest is accruing, there is money coming in, from operations.