For years and years Herb was saying that NAT would never take on any debt, now they have $330mil of debt AND an ancient fleet. The time to pay the piper is rapidly approaching, and he picked the wrong time to try to get financing.
TNK does NOT have a set dividend. They have a 3 cent minimum floor, and have said they are committed to distribute between 30 and 50% of net earnings in dividends. Given the current spot prices, TNK's dividend may very well be 3 cents this Q and next.
1.Forget about shares and voting power - TK controls everything that happens at TNK, They run TNK to benefit TK. Simple as that
2. There are more drop down possibilities. TK owns a few tankers and more significantly TIL has an entire fleet they are trying to sell that TK may decide should be consolidated in TNK.
3. OK. Not exactly sure what you mean, but the financial markets are currently shut off for shippers.
4. Have a great day. TNK is still a great investment given its modern fleet, and the fact that after this year the order book is completely empty. Just need to get through this rough patch or 2016-17.
1. TK is absolutely the parent. In fact, it is even a closer relationship than normal parent - daughter corporate relationship. For example, TK appoints every single corporate officer of TNK. They run TNK out of the same office as TK, and nearly all of the people "working" for TNK and in fact employees of TK. It is for all intents and purposes run as part of TK.
2. The money that they send up to TK that people question most are the dropdown purchases of ships, of which there have been many in the past few years. I would argue that this works both ways since when the tanker market as depressed as few years ago and oil was booming, TK did many things which helped TNK weather the storm and avoid bankruptcy.
3. They just refinanced late last year. There is no way in this financial market, or reason to, refinance again. Also, they must pay down debt so as to avoid a big crunch next year.
4. Sorry, but it seems as if it is you who has no clue.