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Cadiz Inc. Message Board

  • grandmagoogoo grandmagoogoo Dec 4, 2012 9:55 PM Flag

    Whats going on with DYN Tex

    How is the auction of the plants going?

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    • Grandma:

      As far as I know, the auction negotiations are still going on, well for Roseton at least. Rumblings that I am hearing is that Danskamer did not receive any bids. That should not be a surprise to any one as Mirant had a similar plant, Lovitt, which had to close down because it would have cost too much to install the required air quality control equipment - just like Danskamer.

      According to the most recent court dockets, the hearing for the approval of the Danskamer / Roseton sale - AND - then the payment of the property and school taxes due on those plants is on Dec 14, 2012. Therefore, I would imagine that they would announce the successful bidder for Roseton ( just my guess ) by Monday or Tuesday next week, Dec 10 or 11.

      Since this is the MB for Cadiz - I should point out that CDZI is displaying the same characteristics as the old DYN did - as DYN careened into bankruptcy. At least DYN had some power plants - but too much debt. Here CDZI has way too much debt but insignificant revenues. They are going to run out of working capital by the end of this month ( their words not mine per the latest 10Q ) plus the shareholder tangible deficit will be about $ 20 million this month and a $ 63 million note due by June of 2013 ( may be extended to Nov 2013 if they pay $ 600,000 CASH to the lender )

      Sentiment: Strong Sell

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