Bankrupt and Distressed (BAD) Research and Due Diligence

[Madclown]

TRMA: Blipmazter, you asked about Trico Marine and I think it is a long-shot for the secured bonds to be made whole which makes the outlook even bleaker for the unsecured bonds. So, for me, the equity is untouchable because it has no value. Look no further than the fact that the secured bonds trade at 30 cents on the dollar and the 3% unsecured bonds trade at 10 cents on the dollar. For some insight into what some of the largest holders of the unsecured bonds think about the recovery prospects, read docket # 40 at the link below. I can’t post a direct link to the actual PDF, so just look for document # 40 and click on “documents” and then “main document”.

http://dm.epiq11.com/TMG/docket/Default.aspx?rc=1&DMWin=5ab248dd-211f-4183-94b5-78e6295e5c43

I don’t know exactly why the price has held up for as long as it has but in looking at the share structure, it only has 19 million shares outstanding and it has been distressed for quite some time so the bk filing is not news to anyone, the stock has been an obvious short candidate and the equity has been out of investors hands for many months and has been in the hands of flippers. One possible reason for the unexplained price movement could be because of a “bad borrow” where someone was short too much of the stock and ended up running the price back up to cover. Something similar to this occurred with Japan Airlines ADR shares when they rocketed up from $0.20 to over $2.00 after the bk filing while the shares trading on the Tokyo exchange and the greysheets plummeted to a penny and below.