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Vantage Drilling Company Message Board

  • zd60610 zd60610 Jan 2, 2014 7:13 PM Flag

    Nobu SU Chapter 11 Update

    Spent some time doing research today and will share some data that I thought was valuable:

    - In October the courts clarified and validated the Chapter 11 BK citing it was done in good faith and in jurisdiction. Basically the banks and other vendors did not want to work with SU on the restructuring and the ruling by judge forces them to move forward with him.

    -Upon the ruling, SU's legal representation stated they wanted to aggressively move the restructuring forward.

    -SU did in fact pledge 41mm in stock and planned on another $6mm in stock. Thats roughly 20-25mm shares. Was that reversed, not sure, I could not find that to support Braggs claims.

    -The improvements in the day rates within the shipping industry will only help the banks come to the table with SU and help him restructure which will expedite the process.

    -Chapter 11 restructuring process should take upwards to 18Mos. Based on SU filing July 26, 2013 that means we could be looking at another 1yr to resolve this.

    SU will want to avoid any risk of losing if Bragg has a good case and Bragg can not afford to lose and have 100mm shares held hostage which will kill VTG intermediate term and make it uninvestable. This is the difference between being a $2.50 stock and an $8 stock intermediate term. I would be happy if we settle and buy him out for $150mm. A loss would be a huge loss to VTG and Bragg as CEO. Bragg won't let that happen so don't expect a 100mm share win.

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    • The 41m shares blocked by the courts & probably another judge. Looks like the BK judge was not aware of Vantage suing SU... Most of this is old news and maybe we get a update from Braggs in the next CC. I agree with some kind of deal where SU gets about 50 million $$$ from Vantage and we take all his shares...

      Sentiment: Strong Buy

      • 1 Reply to chkotime
      • May be old news but good to know the BK court approved the Chapter 11 which clears the way for creditors to work with SU. Also the comments from his legal team were encouraging especially with shipping improving. Hopeful there is a settlement later in the year.

        Lets hope they cancel Palladium and we get back that cash. We need it to settle out with SU and to pay off the converts. I think it will take $150mm-$200mm to settle with SU including shares as well as his note worth $40mm.

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