Bankrupt and Distressed (BAD) Research and Due Diligence

[Madclown]

Tronox March 2010 Monthly Operating Report Spread

http://tronoxequity.blogspot.com/2010/04/tronox-march-2010-monthly-operating.html

The Tronox March 2010 MOR was released today. The report showed $14.3 million in EBITDA which marks a post-petition high. On an annual basis, this last month’s performance would yield LMA EBITDA of $171.6 million. In addition, the company achieved the highest level of net sales ($65.5 million) and highest gross profit margin (20.92%) in the post-petition era.

To the casual observer the $55.6 environmental reserve allocation is unappetizing but the report footnotes indicate that the Company expects a substantial portion of that reserve to be refunded from insurance proceeds although they have not yet recorded a corresponding receivable. It should also be noted that this report excludes the performance of the non-debtor subs. Perhaps we will see a 2015.3(a) report in the future to shed some light on the financial condition and results of operations from the non-debtor subs so that the true value and cash position of the company may be revealed.