Tuscany International Drilling Inc T.TID

Halt leadind to trade suspension

[Fullblast]

Folks,

I was going throught the TMX trading halt, suspension and delisting rules. I found a possibility for the TMX to suspend trading on TID until the company clafifies its financial situation in light of its recent forebearance announcement : 

"The Exchange may impose a suspension in a variety of circumstances including where:

 

b) the Issuer has made public announcements and there is substantial market interest but the Issuer has not filed current financial statements. In this case, the suspension will normally continue until the market has current financial information with which to assess the Issuer’s announcements. The suspension may be carried out by the Exchange alone or in conjunction with a Cease Trade Order imposed by a Securities Commission.";

From this, I don't think it's impossible that trading on TID goes from halt tu suspension until the company states its Q4 2013 results, or any material information stating a return to normal debt obligations.

Any thoughts ?

[pennywyse2]

I think you are correct. It will be suspended on Monday.

[khaledb]

Can someone explain why the forbearence agreement will last only 10days till the 3rd feb???  In your opinion why not few months like with others forbearence?? Is that mean CS decision is already taken and 10days is enough to prepare all docs to cancel all outstanding shares?.???..any thoughts???

[Fullblast]

khaledb, it probably means that 10 days is enough to get the financial situation on track. No need to drag the uncertainty any longer than necessary.

[khaledb]

Fullblast.... Do you know that the 24th Jan payment was just 5.5millions.... If TID was unable to pay such amount means their cash is run out .... So how financial situation will be on track?

[Fullblast]

Khaledb, I know it's only 5.5 million and there is a number of reason why they would not put it down on the 24th. We need numbers and explanations and that's why I think that trading on TID will be suspended tomorrow until the market has updated or quarterly numbers. Again, I think that assuming the worst is not helpful. If the cash has ran out, which is unlikely, there is no need for

[pennywyse2]

The way I read the press release is that the lenders have given a 10 day period for the company to file for bankruptcy protection in the US and Canada under the provisions of Chapter 11 and the CCAA respectively. They may want a couple of days to pay out the small unsecured creditors to make the filing less cumbersome, and obviously some time is required to complete the formalities. I assume they

[michelleb33]

SO THATS IT Are money is all gone that we invested in it. What about Walters purchase at 2 million at 11 cents.

[sailpgd]

Let's be rational here. The company is most likely going to enter chapter 11. It seems as if the bad luck the company has had over the last few months has not resolved itself. The HRT case is still unresolved and TID is probably having difficulty collecting payments from their clients in Brazil. Walter keeps thinking that things are going to fall into line and the company will become

[Oldfloortrader]

I agree, may guess is CYA is a late pay and the 10 days maybe what they need. Only a guess but someone knew  and CIBC  knew too!!

[pennywyse2]

I think they will file for bankruptcy protection tomorrow, Tues at latest. Time will tell.

[khaledb]

folks .... is this possbile (correct me if i'm wrong) bankruptcy = liquidation ... 310 millions assets - 205 millions debt = at least 100 millions 100 / 266 millons shares = around .35 cents  any thoughts ???

[noble13]

If your numbers are correct there would be a case for a liquidation with money for shareholders. They have however decided on a Chapter 11 scenario which lets the company keep operating as a going concern.  Chapter 7 is the liquidation route.  If there is that much equity in the company they would be hard pressed to justify a cancellation of existing shares and issuing new shares to the

[pennywyse2]

Bankruptcy does not mean liquidation. Chapter 11 of the US Bankruptcy code is a "work out" where the company emerges restuctured in a way it can carry on business. In Canada CCAA is the same thing. If it were an outright liquidation then they would file under Chapter 7 of the US Bankruptcy code and would be placed in Receivership in Canada. Thats the good news. The bad news is that

[Popps]

I fully agree, sailpgdude, and Moyes acted in a cowardly fashion if he's managing other peoples' money... (my words, not yours).   If that was your money, would you want him waiting from 100-to-20-to-5 cents and  THEN  BAIL ???   Popps