analyst112, what law/rule is this your referring to? I know about still being able to file jointly the same year, and $250K for the home, and gifting before death.
What are you referring to? Curious
"even at current metals prices, makes enough to pay that $80 million or so in interest payments, so they can at least carry that load"
crackle, you sure about that, the last two quarters, it seems they were able to maintain that level by selling off inventory, especially last qtr. Probably the best thing they can do, but they will run out of inventory in a couple of qtrs.
crackle, first of all, hope you and all had a Happy Turkey Day.
End of 2015 TC has approx. +200K, in 2016 they have interest payment of approx. -80K, then again in 2017 they have another interest payment of -80K, on top of that the approx. -300K bond comes due. In 2018 there will be interest payment of -50K. Way to many negative numbers.
"Baba had no business to comment on his 10b-5 plan when Thorton was lined up to do a massive sell."
Yup, SEC frowns on that kinda sheeeeet.
private, correct me if I am wrong. If Perron were to pay cash for the tax liability and keep the 32K shares and a few day later the stock had a significant increase, the SEC would not be pleased.
Please correct me if I am wrong. Perron has approx. 600K shares. I believe the sale of 32K shares was predetermined due to Rule 10b5-1.
Ultra, the condition of potential insolvency does exist and the TC board recognizes such. That is why they have hired Moelis & BMO.
Also, the courts under Chapter 11 or CCAA have discretionary powers to approve a "prepackaged" deal provided 2/3 of the creditors (by value) are in agreement.
Hopefully it will not come to that, but it is a very viable option. JMO
blakeeric619, there is always the possibility that TC, Moelis & Company and BMO Capital Markets are in the process of arranging a "prepackaged" Chapter 11. Especially if they cannot obtain and financing. They could be talking with the major stakeholders as we kibitz.. Both Moelis and BMO have participated in such. JMO
First of all, I am not saying that TC is going into court restructuring (7/11 or bia/ccaa) , however I am saying (like you stated) that there is the possibility, if price of copper drops and stays there for any length of time, that it could. happen.
Now, if it does happen, the statistics show that about 90% of the time the shareholders equity is gone. Nada.
see "Bankruptcies Suddenly Soar Across Corporate America, Worst First Quarter Since 2009"
And, most of the time the process will not be Chapter 7 or BIA (where something is usually left over for shareholders), but it will be Chapter 11 or CCAA, and the lawyers will make sure that there is nothing left of the equity. :)
Personally, I see the stock as surviving and providing a good return. However, anyone investing in this stock should be willing to understand and accept the worst scenario before investing. JMO
Here is a quote from Andrew Levkoff, which is appropriate for this stock.
"not once have I ever seen a coin, whether grimy copper or bright gold, that had but one side.”
Both, the bond holders would be looking at getting paid all or a portion PLUS a piece of the new pie and leave the shareholders holding the bag.
brian, the important covenant is contained in the..............9.75% senior secured notes. If RGLD is the holder of record, then it would make sense. Otherwise, RGLD is in line with the rest of the creditors. Not sure what there position in line is, but it's close to the top of the pecking order. :)
The 9.75% senior secured notes (the “2017 Notes”) are guaranteed on a senior basis by substantially all of TCM's subsidiaries and are secured by a first priority lien, subject to permitted liens, on substantially all of TCM's and the guarantors' property and assets.
Note, this a repeat of my Oct. 22nd posting.................
Secondary Bonds are becoming the best play.....
The TC secondary bonds relative to TC stock are looking more and more like very good investments for several reasons:
1. They have a legal claim to TC's assets.
2. The liquidation value of TC appears to be able to cover a good "share", if not all of the secondary bonds.
3. The average recovery rate for corporate bonds that have gone bankrupt over the last 50 years or so is about $0.45 on the dollar.
4. Worst case scenario for stock holders - zippo. Less
Do possess wealth of good trivia...........
"Kennesaw, Ga is noted for its unusual gun legislation in response to Morton Grove, Illinois' law mandating gun prohibition. In 1982 the city passed an ordinance [Sec 34-21]
(a) In order to provide for the emergency management of the city, and further in order to provide for and protect the safety, security and general welfare of the city and its inhabitants, every head of household residing in the city limits is required to maintain a firearm, together with ammunition therefore.
(b) Exempt from the effect of this section are those heads of households who suffer a physical or mental disability which would prohibit them from using such a firearm. Further exempt from the effect of this section are those heads of households who are paupers or who conscientiously oppose maintaining firearms as a result of beliefs or religious doctrine, or persons convicted of a felony."
In 2001, violent crime rates are about 85% below national and state rates. Property crime rates are from 46-56% below national and state rates. From 1999 to 2011, Kennesaw crime statistics reported that both property and violent crimes had decreased, though from 2003 to 2008 the trend in both violent and property crime rates slightly increased. The increase in crime rate overall is attributed to the population growth rate of 37.41%. The population growth rate is much higher than the state average rate of 18.34% and is much higher than the national average rate of 9.71%.[22