Wenzel Downhole Tools Ltd T.WZL

Re: Arbitration Settlement

[oilwatcher13]

Regarding Dreco's and Vector's claim, the arbitrator awarded Dreco and Vector approximately $14.676 million in damages, plus pre-judgment interest in an amount to be re-calculated by an accountant. Based on past calculations the Company does not expect the amount of such pre- judgment interest to exceed $1.3 million.

Dreco / National Oilwell won big time, they should just buy the remainder and get it over with...IMHO

[ferret_ca]

actually this suit has been a drag on wzl for a while, sure it hurts to lose the suit but on the oither hand it coulda been a lot worse and crippled the company, i don't think this amount will do any such thing. at least we can now move forward without this overhanging wzl's progress as a going concern. 2012 revenues should be over 90mil and should grow. market cap is about 1/2 sales. this

[mjh9413]

A bu-mer but as already stated gets it over with. They did not put anything away for this as they deemd it would be immaterial! and while the bank loan is for operational purposes it would seem WZL will remain within its convenants even if they borrow the full amount. Just have to knuckle down to business. Bound to take a hit as no mercy in the services sector right now,