Here is some information that I very recently got. There isn't much to mention other than the legal process is moving along. A big chunk of this process right now is the ongoing call for bidders on the assets. Private banker GMP has been presenting the assets to potential bidders. Those those still have until the end of this month to step forward with letters of intent. We don't have access to all the data, but we know that things are moving. Let's remind ourselves that GMP does want to earn a fee and it doesn't earn anything unless it can sell TID's assets. We're talking about a lot of fees...
As in most auctions, bidders have few incentives to step forward with any offer until the 11th hour is here. So we may very well have to wait until the last few days of the bidding process until we have confirmation of any movements. At this point, we expect bidders to be there. The Court has specifically opened the door to a 3 week extension of the bidding process if we (GMP, the equity committee) can demonstrate clear intent from bidders. So, in the best of worlds, the bidding process may go on until late May.
The market for drilling rigs is volatile and demand for this kind of asset varies from one month to the next. Canadian companies, for exemple, do not have a high appetite for rigs right now, because of spring break up. On the other hand, high tensions in Ukraine may increase demand for South American oil, therefore higher demand for our rigs. The selling of the heli-rigs is certainly positive, althought this deal was very much in the works for months and was anticipated by CS.
The main takeaway here is that there are many moving parts and we are still in wait-and-see mode. We need patience. But there is NO NEED TO BE PESSIMISTIC. The game is still very much on and we have no reason to believe that our score is lower that the other team.
Lastly, but very importantly, we still need to work our contacts within the oil industry, see the previous post on how to do this. We need names of people that you have contacted, we need to know their response and any interest that they may have. We also need to know about any hurdles that they may be facing in relation to the bidding process. Do not hesitate to convey any information and feedbacks that you get directly to me. (benoit.beauchemin@yahoo.ca)
THANK YOU so much for all your efforts in this epic and ongoing battle !