"To the extent that $420 million has been paid to the First Lien Lenders (inclusive of the Escrow Release Payment and any payments of principal or Applicable Premium under the First Lien Credit Agreement previously made to the First Lien Lenders during the Chapter 11 Cases, but exclusive of interest and periodic adequate protection payments other than adequate protection payments designated as principal payments or payments of Applicable Premium), subject to the immediately preceding proviso, the next $15 million in proceeds of asset sales shall be reserved by the Debtors for payment of the Shareholder Supplemental Cash Distribution."
1. The starting point for shareholders is $12.5 million
2. What that passage on $420 million means is actually $420 million les the ORIGINAL ISSUE DISCOUNT paid to lenders when they issued the loan. So, We are talking $413 million
4. HERO will have enough cash to pay $413 million to lenders.
5. After $413 million has been paid to lenders, $15 million will be added to the $12.5 million shareholders fund.
6. ASSETS: As I stated earlier, ten year old 400 Feet Drilling Rigs were listed on May 26 (last week) for #$%$ million a piece.) So, make a quick snap check on the enormous value on HERO's rigs and vessels (scrap or not). NOW, add the transfer value of HERO's $268 million in backlog today.
SO, bottomline for shareholders is $12.5 million, plus $15 million that would come in after $420 -less $13 million OID already paid to lenders. Right off the back is $1.38. If you monetize the value of the $13 million OID, it goes to $2.03 (although that would go to the larger pool. Either way, HERO shareholders would walk away when all is done with something in the $4 neighborliness. DO YOUR MATH WELL
Guess what...these are described as 10 year olds. HERO'sTriumph and Resillence are just 3 years old , built in 2013. So, they are 7 years younger and even if they sell for $50 million each - that's $100 million right off those two, Then we have the Saudi Aramco Rigs that also have over $40 million contract value, the Eni rigs, then the other 14 rigs and the Jack-up vessels. I can say that when these is over, there'd be minimum recovery here in the $3 range for shareholders.
THREE PARTS yet fools are selling /shorting:
1 "shareholders will receive cash recoveries over time,"
2. "including a payment of $12.5 million upon the completion of the Chapter 11 process,"
3 " and additional cash distributions thereafter depending on the success of the sale of the Company's assets through interests in the post-Chapter 11 wind-down vehicle"