Technical Olympic USA, Inc. (TOUS)

[Duffau]

JUDGE SAYS TOUSA CREDITORS CAN SUE

The Judge set a Jan. 20 trial date.

http://www.nypost.com/seven/05232008/business/judge_says_tousa_creditors_can_sue_112159.htm


"Deferral to some later time is not in the best interest of this estate," Olson said. Reorganization isn't possible with an "$800 million question mark hanging over this estate," he said.

So what would an additional 800 million net worth do for tousq.pk stock if the suit is successful? (The book value per share of that increase in net worth is about 13.33) So add 13.33 to the 0.165 that it is trading at today for a rough estimate... <g>

So how likely is it that the First Lien Group (Citibank) loses this suit? I'm thinking that Judge Olson would NOT have approved this unless it had merit so I think it is more likely than not that the suit will be successful in finding fraud in the transactions and thus the complete amount will be unenforcible against any party to the bankruptcy, including the debtors.

So how likely is it that the First Lien Group (Citibank) will come up with some new financing to buy this out of bankruptcy BEFORE the lawsuit progresses much further? IMO, the liklihood is very very high. They do NOT want to explain to their shareholders that they lost 800 million on a fraudulent conveyance transaction which could have been prevented by refinancing at no cost to them. In fact the refinancing could be done so it makes a profit, albeit a small one.

And finally, how much do the Greeks that own 67% of this company want for their company or a part of their company? The company will most certaintly make over half a billion dollars a year after this mess is over. IMO, they should hold on to all their equity and not dilute at all. They are now clearly in the drivers seat with this break.
Daffy Duff