It’s still possible to develop liquidity issues when assets > liabilities. A better metric for this scenario is the current ratio (current assets/current liabilities). HOS’s current ratio is 4.536, which makes the bankruptcy rumors appear dubious. However, if Q3 results reveal a downward trend there is likely some cause for concern.
That wasn’t my point. Your graphic suggests that Bilderberg Group structured their organization to resemble the “Eye of Horus”… That’s just silly.
I have been thru a Chapter 11 bankruptcy with a company many moons ago and I can tell you that it’s no fun. Creditors do have several covenants that have to be met and in a down market they could be close to impossible to achieve. Depending on who you are dealing with they can be easy or extremely difficult. At the end of the day it’s their money and they want a return or they’ll take your assets and sell them. Many companies have to keep going back to the creditors and asking for more money or to modify their covenants until something changes in the market. If you’re dealing with an equity group then lots of time they just want to pull out what money they can and move on to the next investment. The last people to see a return on their money in a bankruptcy is the unsecured creditors, aka stockholders. Your stock is on paper that has nothing binding you to an asset or return.
Bankruptcy is a business method and I understand it but it makes life miserable for the average Joe at work everyday.
[QUOTE=tugsailor;168750]IIRC, people like Trump and Carl Ichan made big money investing wholesale in airlines and other companies in Chapter 11. Whether people like us can make money investing retail in companies like HOS remains to be seen.[/QUOTE]
Trump got his start by inheriting his father’s already successful real estate business. Carl Ichahn earned a large portion of his wealth from LBOs, i.e. corporate raiding–which, in my opinion, makes him a rat shit, scum bag poltroon… but that’s a topic for another conversation.
[QUOTE=Jemplayer;168767]For HOS has around 300 million in the bank. To go into any type of bankruptcy they would have to have 0 boats working, not lay any one off, and not sell any boats. As it stands for the last 2 earning reports they are breaking even on operations and with the genius move of selling the boats on government back to the government yet retaining the operations contracts they are actually showing a profit of at least 30 million each quarter. How many more boats they have to sell I don’t remember, but it they should have enough to get them through the year.
Seacor is kind of doing the same thing, but they don’t have the sure sell’s that HOS has with the government boats. Though they are selling what ever they can that will net them a profit, but that’s nothing new, they have always sold boats even in the best of times if the asking price was what they wanted.
Now Harvey on the other hand…
My prediction is that Seacor and Chouest will split Harvey. Chouest taking all the 6000 ITC boats, Seacor all the rest. The fun part is will it be a last second buy out or will they just wait for the banks to take everything. Either way it will be a fire sale and hell you may see Tidewater and HOS get in on it.[/QUOTE]
I have no basis upon which to make any predictions like this, or to evaluate these sort of predictions.
It certainly seems logical that the bigger and older companies with strong relationships with oil exploration companies and less debt will be in a position to go bargain hunting when the weaker companies falter.
Without knowing a lot more about Harvey’s relationships with customers and its Wall Street investors, there is no way to know what is going on with them.
I would think that the oil majors would not want to see a company like Harley fail, which would then give Chouest and HOS a virtual monopoly on the top of the line boats.
[QUOTE=tugsailor;168779]I have no basis upon which to make any predictions like this, or to evaluate these sort of predictions.
It certainly seems logical that the bigger and older companies with strong relationships with oil exploration companies and less debt will be in a position to go bargain hunting when the weaker companies falter.
Without knowing a lot more about Harvey’s relationships with customers and its Wall Street investors, there is no way to know what is going on with them.
I would think that the oil majors would not want to see a company like Harley fail, which would then give Chouest and HOS a virtual monopoly on the top of the line boats.[/QUOTE]
I agree with most of what you say except for oil majors not wanting to see Harvey fail. Look what happened when Harvey purchased Abdon Callais, Chevron almost immediately released all of their vessels. Mr. Guidry has not made such a good relationship with a lot of his customers.
[QUOTE=Saltine;168783]I agree with most of what you say except for oil majors not wanting to see Harvey fail. Look what happened when Harvey purchased Abdon Callais, Chevron almost immediately released all of their vessels. Mr. Guidry has not made such a good relationship with a lot of his customers.[/QUOTE]
If that is indicative of their relationship with customers, then that does not bode well for them, at least not under current leadership.
If a company has good assets, but bad customer relationships due to the idiosyncrasies of the CEO, creditors might prefer to change the CEO and bring in new leadership that has good relationships with customers, rather than to liquidate the company.
You’re right it’s very silly I have no idea what I was thinking. They never mentioned any of this on Faux News, CNN, or PMSNBC. I refolded my foil hat and recreased the angles to better block the NSA mind control satellite signals. Knew I should’ve taken the blue pill…
The thing is Shane has pissed off a lot of people. People that can help him out when times get tough. The boat companies have a history of helping each other out during these times. I’ve heard stories of Chouest buying supplies for boats that where not his but where working for the same oil company. I’m sure the oil company got the bill, but still shows them helping the competition. Seacor bailed Chouest out in the late 90’s and I think they did the same for HOS also.
I’ve heard that Shane has to sign off on every contract personally, and that has lead to them missing out on jobs because he was unavailable. Why have a sales dept if they can’t finalize a contract?
It’s already known that Gary and Shane do not get along. The rumor being that Gary supposedly bought all the new BEEMAR boats even before they where done being built just do Shane couldn’t.
I’m king of surprised Harvey isn’t already in some type of bankruptcy. They have cut wages so low that masters whose boats are not on a job and don’t have their 6000 ITC are in the $500’s a day. That’s what mates are making at my company right now. I know their big construction boat the Deep Sea is working for $30k a day, maybe that’s a stand by rate they have with DOF. I do know that if you need them to move at Intermoor it takes for ever because they have to go wake AB’s up.
[QUOTE=Jemplayer;168789]The thing is Shane has pissed off a lot of people. People that can help him out when times get tough. The boat companies have a history of helping each other out during these times. I’ve heard stories of Chouest buying supplies for boats that where not his but where working for the same oil company. I’m sure the oil company got the bill, but still shows them helping the competition. Seacor bailed Chouest out in the late 90’s and I think they did the same for HOS also.
I’ve heard that Shane has to sign off on every contract personally, and that has lead to them missing out on jobs because he was unavailable. Why have a sales dept if they can’t finalize a contract?
It’s already known that Gary and Shane do not get along. The rumor being that Gary supposedly bought all the new BEEMAR boats even before they where done being built just do Shane couldn’t.
I’m king of surprised Harvey isn’t already in some type of bankruptcy. They have cut wages so low that masters whose boats are not on a job and don’t have their 6000 ITC are in the $500’s a day. That’s what mates are making at my company right now. I know their big construction boat the Deep Sea is working for $30k a day, maybe that’s a stand by rate they have with DOF. I do know that if you need them to move at Intermoor it takes for ever because they have to go wake AB’s up.[/QUOTE]
Gosh, I sure hope $30k/day is a standby rate because that’s low for that vessel.
Business is business but some companies don’t realize that healthy competition is good for the industry. Shane has put his ego in front of his company and that never leads to success. Growing too big too fast is usually a sign of a company that can’t succeed over the long haul because of poor business fundamentals.
[QUOTE=Saltine;168795]Business is business but some companies don’t realize that healthy competition is good for the industry. Shane has put his ego in front of his company and that never leads to success. Growing too big too fast is usually a sign of a company that can’t succeed over the long haul because of poor business fundamentals.[/QUOTE]
NAW! That is just Shane being a Bayou THUG!..Gary Chouest is infinitely smarter than Shane Guidry and can eat his lunch any day of the week. In fact, I hope he does…
Larry Rigdon might be looking for something to do.
A year ago, I had heard a rumor that HGIM was looking to buy out OCLLC…now, you have to wonder if Shane Boy’s investors might court a buyout of their interests by Otto Jr.?
The Bayou has very mysterious ways of operating…
ONE SMUG ASSED EMM EFFER THERE!
[QUOTE=Saltine;168776]The last people to see a return on their money in a bankruptcy is the unsecured creditors, aka stockholders. Your stock is on paper that has nothing binding you to an asset or return.[/QUOTE]
This isn’t exactly true for a number of reasons:
a shareholder isn’t a “creditor” of any kind but an OWNER.
shares of stock are legally binding shares of ownership. The fact that it is a share of ownership means that technically you don’t have a right to get anything back. You don’t lend the company money you pay for partial ownership.
That’s why the return of stocks as a whole are so much higher than bonds, which are money lent to a company or government and thus debt. If a company goes under the owner isn’t entitled to recoup anything, that applies to shareholders also.
[QUOTE=c.captain;168799]Larry Rigdon might be looking for something to do.
A year ago, I had heard a rumor that HGIM was looking to buy out OCLLC…now, you have to wonder if Shane Boy’s investors might court a buyout of their interests by Otto Jr.?
The Bayou has very mysterious ways of operating…
ONE SMUG ASSED EMM EFFER THERE![/QUOTE]
Would be a conflict of interest for
Larry Rigdon since he’s currently tied to Jackson Offshore.
[QUOTE=Saltine;168805]Would be a conflict of interest for Larry Rigdon since he’s currently tied to Jackson Offshore.[/QUOTE]
conflict…shmamlict! I like Larry and believe he would be 1000% better running HGIM than that Bubba Slug Shane
.
Hey c.captain ol’ Buddy, are your signal flags announcing an event you enjoyed recently or offering a service for mariners?
[QUOTE=Lookout;168813]Hey c.captain ol’ Buddy, are your signal flags announcing an event you enjoyed recently or offering a service for mariners?[/QUOTE]
HAHA…such a funny LITTLE man you are!
The type of Wall Street investment funds that provide capital to mud boat companies probably dictate a very complex financial structure. There are probably several different classes of stock, including preferred stock (which has many characteristics of debt). There is probably debt with options to convert to stock. There is probably debt coupled with stock warrants. Often the creditors have rights, if specified triggering events occur, to demand that the company issue them massive amounts of new stock, which can significantly dilute existing shareholders.
Do OSV companies typically hedge against declining oil prices with derivatives? If so, those derivatives have probably matured by now, but some OSV companies may have made some serious money on those hedges. I’d be surprised if the Wall Street guys investing in OSV companies were not backstopped by hedges.
When it comes down to a conflict between the OSV owners and their Wall Street investors, I don’t have any doubt that the Wall Street boys will come out on top.
[QUOTE=Jemplayer;168789] I know their big construction boat the Deep Sea is working for $30k a day, maybe that’s a stand by rate they have with DOF. [/QUOTE]
Man, are other ROV vessels going for that little too? Last I heard rates for ROV vessels was around 50k/day though I had heard the HOS Mystique was pulling in 35K.
Oh shit!!! Duuuuuuuudddddeee!!! Mind bloooowwwnnn!!!
