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.

Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: jrhana who wrote (2109)	7/23/2009 10:22:48 AM
From: Glenn Petersen	Respond to of 3862

I believe that VTG is an interesting speculation for those investors who believe that oil is destined to trade at significantly higher levels in the long-term. In June, the company raised $25.7 million in a private placement. Potential investors should note that there is a lot of risk with VTG. From the most recent 10-Q: At March 31, 2009 we had outstanding shipyard commitments to complete the Sapphire Driller, Aquamarine Driller and Topaz Driller of approximately $261.1 million, including accrued interest of $5.3 million, plus current estimated purchase obligations for equipment and shipyard oversight expenses of $12.9 million to put these jackups in service. We had undrawn borrowings of approximately $290.2 million under our credit facility. The credit facility was amended in December 2008 to restrict certain borrowings under the credit facility (the “Amended Credit Agreement”). Pursuant to our Amended Credit Agreement, we had unrestricted available borrowings of $31.0 million for the Sapphire Driller which will complete the Sapphire Driller’s shipyard obligations. The remaining $259.2 million is restricted until such time as the banks can complete the syndication of the loan to additional banks that would provide the remaining funding. The shipyard has agreed to amendments to the shipyard payment schedule in order to accommodate the restrictions placed on us by the Amended Credit Agreement by deferring all significant shipyard payments on the Aquamarine Driller and Topaz Driller to June 30, 2009. The shipyard has also expressed their willingness to provide additional financial assistance if necessary and has offered post delivery financing for the Topaz Driller.We believe that all such forbearance by the shipyard is dependent upon our good faith effort to complete the syndication of the Amended Credit Agreement or raise alternative sources of funding. Accordingly, we have on-going discussions with alternative sources of funding which are generally more expensive than the Amended Credit Agreement. While our discussion with these alternative sources of funding have indicated that funding is available, although on more expensive terms, there can be no assurances that adequate funding will be available or available on acceptable terms. In the event that we do not complete the syndication of the Amended Credit Agreement or complete an alternative source of funding by June 30, 2009 and the shipyard elects not to continue its forbearance, the shipyard could choose to foreclose on the jackups still under construction and the banks may determine that we are in default of the Amended Credit Agreement and accelerate the payment terms. sec.gov