Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I agree.
And look, they just launched a $20M clawback campaign against all the folks who owe them.
https://www.law360.com/articles/897731/bankrupt-cal-dive-launches-20m-clawback-campaign
I wonder if that includes Pemex.
I'm looking forward to Monday's market reaction to this news.
Cal Dive Sues Arendal for Failure to Turn Over Pemex Funds
http://us.makemefeed.com/2016/06/25/cal-dive-sues-arendal-for-failure-to-turn-over-pemex-funds-1462483.html
Cal Dive International Inc. is suing troubled Mexico pipeline company Arendal S. de R.L. de C.V. for holding onto "tens of millions" of receivables in violation of U.S. bankruptcy law.
I'll give you a quarter for all of 'em.
It's interesting and very exciting. Question now is whether the settlement amount can be enough to cover debt and leave some value for equity.
Perhaps with this and the [recently improved] possibility of a large recovery from Pemex, Cal Dive can emerge from bankruptcy with original stock, and some sort of reasonable value restored.
Here it is:
http://www.naturalgasintel.com/articles/105669-macondo-drilling-moratorium-not-bps-fault-judge-says
Bad news. A settlement from BP as a result of the drilling moratorium was one of the major potential triggers for a comeback. Mercifully, the collection of ~$50M owed by Pemex is looking more likely recently with Pemex's new lines of credit.
The last I heard, BP was arguing that it was not the Macondo blowout itself but the resulting gov't drilling moratorium that put Cal Dive and others out of work. Sort of a specious argument -- and I'm disappointed that it held up in court.
Thanks for the update, Shanon. Do you have a link to that story ??
People are learning to do expected-value math.
Of course it's *probably* going to zero. But several possible outcomes could save the company and stock.
Does anyone know whether CalDive is suing Pemex to recover the moneys owed (something like $80M, as I recall)? What are they doing to collect from Pemex ??
"Bankruptcy courts can't touch any of the subsidiaries outside the US"
Can you explain that? You're saying that the bankruptcy court cannot force the sale of the foreign entities. But does that mean that lenders can be paid less then 100 cents on the dollar from US assets (only), and then *existing* shareholders retain ownership of the foreign assets? I would think that the foreign assets then go to the holders of the *new* stock, issued to the DIP financiers and other lenders.
Let's not forget about potential Pemex payments. And I'll have an update on the BP litigation later.
Correct. If either the Pemex payments show up OR the BP lawsuit is favorably resolved, Cal Dive is in much better shape. Either of those outcomes is reasonably likely -- or both.
I heard a report that Judge Barbier now has a plan that will determine whether BP is liable to the oil and gas industry impacted by Macondo, now that the state claims have been settled. I'll post details once I've confirmed them.
Shanon, could you be a little less cryptic, so we know what you're talking about? Links and specifics?
There is good news coming about BP settlement process with oil&gas claims, now that BP has settled the state and fed claims. I'll post when I get full details.
This month they brought back some folks to work on the Pemex contracts.
If they were to actually collect the previously stated $72.5M (net $42.5M) from Pemex this fall, where would equity be then ?
Liam, in their March declaration, they said they expected to collect $72.5M and net $42.5M from Pemex, to be collected by August this year. That's now.
What's the new eta and estimated net on the Pemex collection ?
The BP lawsuit, if acted upon, should rightly be $3-$5 per share of value. Of course it will be settled for less -- but this is the major source of value now that Cal Dive (partly due to BP et al) was wiped out.
Even if Cal Dive ceases operations entirely, the corporation should not be dissolved -- and the shares not cancelled -- until this claim is settled.
BP might e.g. acquire Cal Dive as the quickest way of eliminating this rightful claim.
In 75% of bankruptcy cases, APR (absolute priority rule) is violated.
In reorganizations in which such violations occur, "equity holders appear to receive between 4 and 10 percent of the firm’s value".
http://webs.wichita.edu/longhofer/Vita/aprrev.pdf
This is often agreed to for retention of executives and employees, as well as to avoid lawsuits.
If they do remain a going concern, what is it that would trigger new stock to be issued (and current stock wiped out, as e.g. happened with GM), Shanon ?
Huber just filed a 13G indicating they only have 4.8M shares.
So are they dumping?
What about Cashman?
I'll check with the trustee re the equity committee, if no one else has inquired.
What is the eta on the trustee deciding re the Equity Committee?
Will they decide before the July auctions?
And if the decision is for no equity committee, will it be an explicit 'no' that is conveyed to us -- or will there simply be no action ?
I have not heard regarding a decision on an Equity Committee. It's a difficult decision for a trustee, because a *formal* Equity Committee must have representation funded by the debtor. The trustee makes a call whether it is justified.
Did you (and everyone else) type a formal, polite, letter -- stating your stock holdings, and reasons for demanding a formal Equity Committee -- and SIGN it and email a scanned copy to: benjamin.a.hackman@usdoj.gov and jeff.heck@usdoj.gov ??
What are Cashman and Huber doing? Why were they not at the meeting with the trustee? Why are they silent?
They are expecting $42M from Pemex soon, for 4 projects. 2 are complete; the other 2 are 80% complete. Those payments are not perceived as being at risk. My understanding is that other pending contracts are significantly smaller. Please tell us if you know more.
I attended the meeting in Wilmington yesterday.
The entire thing was basically an hour-long deposition of the CEO by the trustee, in front of a group of attorneys. Hardly anyone else spoke.
Cashman and Huber Capital were not present. There was no discussion of an Equity Committee, though I did raise it after the meeting with the trustee, and will follow up in email with an explicit request that one be formed.
Much of the Q/A was regarding Cal Dive's many subsidiaries, and how assets and accounting have been distributed among them.
To the trustee's credit, he did question the CEO about the BP claim. The CEO characterized his estimate of the potential value of that claim as "tens of millions" but not hundreds of millions. He indicated that there were other similar cases in the queue, to be litigated by 2016, which they regard as "test cases" of the theory that Cal Dive could obtain relief for this type of claim.
The CEO was also questioned sharply, by multiple people, regarding the massive impairment charges that the company has taken, erasing a large 9-figure value from their stated assets.
Is there confirmation that the check from Pemex arrived?
What about the remaining payments due from Pemex? Are those likely to be paid in full / on time; or are they in jeopardy?
ok, well I will likely attend the meeting in Wilmington on 5/27 where they discuss the equity committee. It's an open meeting, so anyone can attend. I'll be making it clear that we will hold the process accountable for the existing book value. If someone wants to help me prepare a set of talking points, please reach out to me.
btw, if you want a recording of that meeting, you can mail the trustee a CD and return envelope, and he'll make a copy of the recording for you.
You're referring to this doc:
http://www.kccllc.net/caldive/document/1510458150505000000000006
I see the balance sheet on page 15 that shows negative equity. However it also has zeroes for Property and Equipment.
The balance sheet on page 16 shows positive equity. The 2 balance sheets have 2 different case numbers (15-10458 is Cal Dive Int'l ; 15-10459 is Cal Dive Offshore Contractors).
Other balance sheets are for other case numbers, covering other subsidiaries ...
When you reference a court (or other) document, could you include a pointer, so we're all looking at the same thing ?
Thanks. Do you have a rough idea of market value for their remaining vessels?
Also, is anyone planning to attend the May 27 meeting, where they'll decide on the creation of an Equity Committee ?
Here you go:
http://dockets.justia.com/docket/louisiana/laedce/2:2013cv00709/153773
http://www.plainsite.org/dockets/t28ky4lo/louisiana-eastern-district-court/cal-dive-international-inc-v-bp-exploration-and-production-inc-et-al/
4/11/2013 : Cal Dive vs BP (and Transocean, Triton, Haliburton): case # 2:2013cv00709
I was a bit surprised when shanon1 characterized the BP claim as impairment against the "Horizon" brand. It's primarily loss of business due to the drilling freeze for the years following Macondo.
And shanon1, please indicate where you got the $300M figure in post #500.
The BP Claim is the largest variable. If you consider the assets and debt a wash, then you have 8 figures of cash from Pemex coming in this summer; and a claim against BP et al that would easily amount to 9 figures if it went to court. BP should just buy them, remove the claim, and resell the assets.
What is this June 8 deadline?
Thanks, Liam. Pointer to that please ??
The trustee hasn't responded to me either.
Does anyone have an insights from Wednesday's Omnibus hearing?
(The next one is scheduled for June 22).
Cal Dive won an extension on liquidating their assets :
"Cal Dive has until June 1 to file bid procedures for the sales and until July 15 to tap stalking horse bidders for the asset groups, which will both be auctioned on July 28."
You can watch the court action here:
http://www.kccllc.net/caldive/document/list/3984
Ping me privately with contact info if you'd like to discuss.
Cal Dive vs BP (and Transocean, Triton, Haliburton): case #2:2013-cv-00709
How does this (very legitimate) outstanding claim for damages against BP et al factor as an asset for Cal Dive in the bankruptcy proceeding? I never hear any discussion on this pending lawsuit; not even a mention on earnings calls.
http://dockets.justia.com/docket/louisiana/laedce/2:2013cv00709/153773
??
Appreciate your posts on Cal Dive.
Do you know about Cal Dive's pending lawsuit against BP, Haliburton, et al, for damages from the Macondo blowout? I would think their legitimate claim against such a wealthy defendant would be a huge asset. Any idea if/how its being evaluated in the chapter 11 proceeding?
btw, I understand the trustee is looking into creating an Equity Committee to represent shareholders.