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Read the all the filings the facts are there!
This company is a private company that is not making any public offerings for their shares right now. And with VTGDF being publicly traded, that is a problem for them. VTGDF have already canceled any unsold shares which is a sign of a possible buy out in the future.
Regarding the convertible notes and the interest entailing them, what they have done is reorganized debt to prolong the life of the company. Oil is not going to be so cheap for too much longer.
Being patient is the toughest part of this, but when oil prices are back up to $80-$85 dollars they should be ripe enough to sell.
Those are the facts and the calculations for the 62.5M for the VDC note.
1. VTGDF share holders are initially share holders in Vantage Drilling company.
2. Vantage Drilling Company has 13.1% in Vantage Drilling International through 655,000 shares of Vantage International.
3. There fore VTGDF shareholders shares value are based off of the assets of Vantage Drilling company, which are 655,000 shares in VDI and the initial value of one share was $95.00.
In conclusion by proxy shares of VTGDF will have a benefit from VDI, but with the dilution of 310M shares to 655,000 shares, the number of shares in VTGDF to VDI is 0.002112903225065, to make it more simple if you have 1M shares in VTGDF the portion of VDI would be 2,112.903. In calculation of future dividends paid by VDI that might give you some food for thought.
Yep, By proxy the VTGDF share holders are own that 13% of VDI, shareholders of VTGDF in circumspect the benefactors of VDI, when there is a dividend announced VTGDF share holders will benefit from them.
BTW that 1M shares traded yesterday was a sell.
Thanks for the reply, looking forward to some upward momentum!
Yep, in early February 2016, Anchorage's conversion of roughly 3M in notes converted to a about a 1M dollars worth of shares. That was a part of the prepackaged Ch11 deal. The 3 companies that own VTGDF right now are multibillion dollar companies and are not going to let it fail!
They may be in Liquidation but that is just a formality, because they can not completely liquidate VTGDF because the current assets owned by VTGDF are officially owned by former debtors. Vantage Drilling Company went through Liquidation before and came out of it and will do the same again.
I am unsure why this site and sites like Seeking Alpha make it a mission to bash for no objective reason but there must be a different motive for it.
Totally agree! This stock is way under valued! On paper they are worth about 20 cents a share. Just a matter of time before we get to higher gains.
Here is what you need to know!
VTGDF has 62 million dollars in assets and no liabilities.
The liquidation in the Cayman Islands cannot touch those assets, because creditors now own them as per the CH11 prepackaged plan.
As the oil market gets better and business gets better for VDI this stock value will increase, because VDC now owns 13% of VDI.
Buy or Hold depending on what your current position is, just because they are starting back and have no liabilities with $62 million in assets and will steadily rise when VDI's sales go up.
I am sure someone will want to state that they are in liquidation, but check out KPMGs site, they do not list VDC anymore as a company in official liquidation, also I have corresponded with KPMG and initially they indicated VDC to be insolvent and they would be dissolved, however the VDC note that owns 13% of VDI cannot be dissolved, therefore this liquidation is a joke and most likely just a formality! The reason they cannot touch those shares in VDI that VDC owns is because it is a part of the Ch11 prepackaged plan and does have creditors still listed as owners of VDC.
What is the con?
Keeps accumulating, tight pattern
Getting closer to the end of liquidation, with $62.5M in assets LMAO and looking forward to gaining even more profit!
Almost through liquidation and looking forward to it, basically just looks like a restructuring, considering VDC got its $62.5M in the form of new shares in VDI and VDI took all the liabilities.
When the liquidation is finished it is going to see a sharp raise!
Totally agree, 62M in assets and probably very little debt considering under the restructuring VDI took all the debt and now VDC owns 13% of the shares in VDI or at least that is what the 10-K indicated!
Another piece of information for thought VDC has deregistered all unsold outstanding shares. Also every company associated with VDI is filing not to report status in SEC standard reporting protocol. Since VDI is a private company, probably VDC will want to be a private company, which most companies pay a premium price for shares to go private.
There are a couple more scenarios, like waiting until DEC. 2016 for promissory note interest payment for a dividend. One more where they would cancel the shares, but that is not probable considering Convertible bonds for Anchorage capital have been converted into shares of VDC.
Yep looking good! The real question is 10% of what?
Thanks for the reply but doesn't really answer the question.
So, how much volatility do you think? Are you sure it is not going to be a short squeeze? Dec. 31, 2015 they canceled around 50 million shares and 2 1/2 months later they had raised about 500%.
yep, me too!
And your perfectly entitled to your opinion.
An opinion without evidence to back it up is just an opinion, but thanks anyways for yours!
Nothing about Vantage Drilling is a typical BK, OGIL went into BK and Vantage Drilling went into Liquidation in CI, but sold equity assets to OGIL under a promissory note that is due DEC. 2016.
I did contact my brokerage and there was no information concerning Vantage, so I did all the research and figured out even if they are in Liquidation there Equity Assets are tied up in a Promissory note and unless that is liquidated they would never be completely liquidated. That along with the fact they paid off creditors with 12% to 17% of the notes they would have received from the new OGIL, clarified that they will not be completely liquidated.
Under CI liquidation a company can operate a business one year later. Which would be roughly DEC. 2016 and coincides with the due date of the promissory note.
So, with that I think we will just have to agree to disagree.
Ok, Just a Speculator, then Vantage Drilling Company is not in a BK, they are in Liquidation in CI, which in that explanation the same logic would not apply.
Here is an example that contradicts your logic : Hercules Offshore, Inc. (HEROQ), which was HERO, but when it went through BK the ticker was changed to HEROQ the stock is still listed and has a value of roughly 5 cents.
Great product! Ramped up Sales strategy! Trying to Manipulate stock price with share cancellation!
I wonder how long before they try to sale the company?
If you are referencing the post of the Speculator, he/she is stating that these shares will magically disappear and the investor cannot get that investment back if they stop trading, in which the shares for Vantage Drilling Company are share-equity/debt. And Vantage Drilling Company cannot just simply run away with that share-equity.
For an investor it is an investment.
Please reference which post you are addressing, so I can answer in the same context as the original post, so then there is no misunderstanding.
Ultimately common shares means different things to different parties.
For investors it is an investment.
For companies issuing stock it is considered equity and debt, just look at the 10Q it is listed as a liability and as stock-equity.
But as usual paint the picture as you see fit.
Common Stock is a form of debt as you would see if you look at a 10Q it is listed as a liability.
Vantage Drilling Company is an affiliate of the OGIL trust.
This does not make any sense, considering common shares are considered debt, it would not make sense to give the money invested into Vantage Drilling to Vantage Drilling it would go back to the investors.
As well Vantage Drilling Company has used 12% to 17% of the OGIL notes to pay the debt to creditors.
In recent events on December 31, 2015, Anchorage Capital received 1,381,475 in common shares for conversion of its 3,300,000 Senior Convertible notes.
Not sure where you are getting your information, but looking at all of the SEC filings there is not clear evidence that this company's shares are going to stop being traded.
I have had two or three occasions were stocks have stopped trading and the result was, the ticker was changed to some type of serial number and the cash was returned to my account.
I agree if you read all of the 8-K reports and put it altogether, there is a lot of positive data, that indicates good probability to yield a profit, depending on when you bought it.
I bought it at after the BK and at the low end of the trend, so I am fairly optimistic!
Skepticism duly noted. The risk reward is what is making it interesting right now, considering the current price will yield a high return even if there is one cent to be made.
If the shares stop being traded the stocked is cashed out and the money will be returned to the investor.
The fundamental point is the situation is not black and white, there are multiple variables to be considered.
Thanks, for the compliment and moderating this forum!
Skepticism duly noted, but let me connect the dots for you, because obviously you lack the objectivity to do so.
1. A Company that liquidate in CI are eligible to operate 1 year after they complete their liquidation.
2. Vantage Drilling put equity assets into a promissory note from OGIL that is due one year after the CH11 was filed in the prepackaged plan that was approved and is now completed.
3. Vantage Drilling used approximately 12-17% of the notes it would have received in the new OGIL to pay its creditors.
4. Vantage is an affiliate in the revised trust made by OGIL
5. A Back Stop clause in the Ch11 plan gives Vantage 2.25M to from OGIL and half of that is in cash and half of it is in notes in the new OGIL.
6. Insiders holding the company could have sold out along time ago but are keeping their shares and they really have the best insight to this situation.
7. Institutions are still buying and holding, and they typically have a better intuition and are more intelligible in their approach to investing.
So, with that I will say one more thing, people who only see bad can never see the good in the situation.
The point is not everyone is jumping ship, pardon the pun, and even some are getting in:
Source is CNN Finance
2/05/2016 GUGGENHEIM FUNDS INVESTMENT ADVI... Bought 22.5 Thousand shares of Vantage Drilling Co
insider/institutional common share holders
________________________________________________
Top 5 Holders of Institutional Holdings
1. PUTNAM INVESTMENTS LLC
2,569,046
2. CAPSTONE FINANCIAL ADVISORS, INC.
200,000
3. EUBEL BRADY & SUTTMAN ASSET MANAGEMENT INC
20,000
4. TUDOR INVESTMENT CORP ET AL
19,565
5. ROTHSCHILD INVESTMENT CORP /IL
15,000
Top 5 Insider Trades
BRAGG PAUL A
633,332
HALKETT DOUGLAS
333,332
SMITH DOUGLAS G
200,004
OLEARY JOHN C G
180,000
DECLAIRE CHRISTOPHER G
133,340
Definitely holding on...
the winding up process is not finished yet which takes about 90 days.
The liquidation and the way they have sown this up is perplexing.
1. Paying creditors with stock notes from the new company.
2. Tying up equity interests in a promissory note from OGIL
3. Will receive interest from the note in a years time or notes in the new OGIL.
If they don't give share holders something, this could be a class action lawsuit or at the least a fraud case for the SEC, because taking new credit to pay off creditors and putting assets in a promissory note so it would not be liquidated in CI, should not be legal.
I understand OGIL wants to start over but this is not the way to do it.
Believe what you want to believe! OGIL has bought Vantages assets for a promissory note on Dec. 3rd 2015, which will be paid back to Vantage in a years time either by cash or notes in OGIL.
As far as value to judged in CI, with all the assets in a promissory note its very speculative but here is some recent research:
- Vantage Drilling Co.'s stock edged lower by 20.00% to close Friday's session at USD 0.002. The company's shares oscillated between USD 0.0015 and USD 0.0025, marking a new 52-week low during the session. The stock recorded a trading volume of 4.22 million shares, much above its 52-week average volume of 2.56 million shares. Over the last three days, Vantage Drilling Co.'s shares have declined by 42.86%, and in the past one week the stock has moved down 52.38%. Further year to date the shares have shed 24.24%. Moreover, the stock is trading at a price to book ratio of 0.03. Additionally, the stock is trading at a price to cash flow ratio of 0.09 and at a price to sales ratio of 0.02. Further, the stock is having a 52-week range of USD 0.002 - USD 0.69.
Long story short all assets are tied up in a promissory note from OGIL to Vantage Drilling, that promissory note will be paid back to Vantage in a years time.
Creditors have agreed to the Ch11 and it has been approved.
Liquidation in CI also has a version of restructuring, when a voluntary Liquidation is being made.
So, basically all creditors are going to get paid but not right now and are being renegotiated, so Vantage is going to be under the Trust umbrella of OGIL.
If Creditors wanted all of their money they would make Vantage liquidate all assets which means the promissory note.
On Dec. 2nd 2015 Vantage Drilling put their assets were bought by OGIL for a promissory note.
http://hsprod.investis.com/site/irwizard/vtg/ir.jsp?page=sec_item_new&ipage=10608934&DSEQ=&SEQ=&SQDESC=
OGIL is in Chapter 11 to restructure the company and restructure debt.
Vantage is under liquidation in CI but liquidation in CI is the same as a BK and also has variations of liquidation. With that said there is a voluntary liquidation that is used like Ch11 to get debt relief which is most likely what is going on, because all assets in Vantage is now held by OGIL for a promissory note to be paid back to Vantage in one years time.
All indicators are Vantage will continue to do business as a company under the umbrella of OGILs Trust.
http://hsprod.investis.com/site/irwizard/vtg/ir.jsp?page=sec_item_new&ipage=10699072&DSEQ=&SEQ=&SQDESC=
BTW Warren Buffet has a stake in Wells Fargo and he typically takes ownership in a company and lets them operate the company by themselves.
Vantage now completely under the OGIL trust umbrella:
http://hsprod.investis.com/site/irwizard/vtg/ir.jsp?page=sec_item_new&ipage=10699072&DSEQ=&SEQ=&SQDESC=