Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (11362)	3/20/2003 5:29:29 PM
From: afrayem onigwecher	Read Replies (1) \| Respond to of 19428

Boots & Coots And The Panama Connection By CAROL S. REMOND A Dow Jones Newswires Column NEW YORK -- The trading in shares of financially hobbled Boots & Coots International Well Control Inc. (WEL ) has been mysterious enough. But now add a new chapter to this tale about a tiny company that could supposedly benefit from oil field fires in Iraq. A firm that recently tossed a $1 million loan lifeline to Boots & Coots is registered in Panama and is apparently a front for four Texas oilmen who don't want their identities known. This is important because the firm, Checkpoint Business Inc., has declared that loan in default and is proposing a restructuring plan under which current Boots & Coots shareholders would see their stock canceled. Presumably, Checkpoint, as a creditor, would have some sort of an equity interest after a restructuring, which it suggested be done through Chapter 11 of the U.S. Bankruptcy laws. Shares of Boots & Coots jumped more than 300% earlier this week in what at times was frenzied trading on the American Stock Exchange. Some suggested the stock moved higher because Boots & Coots might land a contract to help fight oil well fires in Iraq as U.S. troops invade the country. Boots & Coots, a Houston company, made a name for itself putting out well fires during the Persian Gulf War in 1991. Thursday, Boots & Coots shares retreated. The stock closed at $1.40, down 70 cents, or 33.3%, on very heavy volume of 125.9 million shares. The company has around 45 million shares outstanding. The future of the company could very well rest in the hands of Checkpoint, a firm whose owners like their privacy. Boots & Coots will only say that Checkpoint is run by four Texan oilmen and that they are not company insiders. Checkpoint is incorporated in Panama, a country whose secrecy laws protects the identity of the firm's principals. The Panama Public Registry shows that Checkpoint was incorporated on Oct. 2, 2002. That's just a couple of months before Checkpoint supposedly loaned money to Boots & Coots. The registry's files also provide the names of three individuals listed as officers for Checkpoint. But that doesn't help much. That's because these three individuals are simply employees of the law firm that incorporated Checkpoint. Francisco Martinelli, a lawyer at Patton, Moreno & Asvat in Panama City, said he could not provide information about Checkpoint's real principals. While it's difficult to learn more about Checkpoint, information about Boots & Coots financial situation is available and not very good news for shareholders. Filings with the Securities and Exchange Commission show that Boots & Coots is on the brink of insolvency and has been unable to pay its vendors on a timely basis. Boots & Coots' quarterly filing dated Nov. 14, 2002, carries a going concern statement from the company's auditor. According to the filing, Boots & Coots had about $4.1 million in current assets but almost $20 million in current liabilities as of Sept. 30, 2002. The company also said in the filing that it was unlikely to comply with AMEX's continued listing standards. That means that Boots & Coots could be danger of being delisted. In addition to the $1 million owed to Checkpoint, Boots & Coots is in default on some $7.2 million in subordinated notes held by Prudential Insurance Co. of America. Prudential declined to comment. By Carol S. Remond; Dow Jones News; 201 938 2074; carol.remond@dowjones.com Updated March 20, 2003 4:53 p.m.