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Microcap & Penny Stocks : FMA / FracMaster -- Ignore unavailable to you. Want to Upgrade?

To: Rikee who wrote (158)	4/30/1999 12:35:00 AM
From: Rikee	Read Replies (2) \| Respond to of 233

Check this out. Note second paragraph:"while he leads a restructure & recapitalitation, his Houston based investment banker said" Balm is speaking through his investment banker ?? Looks pretty good to me!! Balm begins to fight U.S. bid for Fracmaster By CLAUDIA CATTANEO The Financial Post CALGARY - Alfred Balm, the Geneva-based billionaire who built Fracmaster Ltd., has launched a bid to regain control of the company and prevent its sale to Houston-based UTI Energy Corp. Mr. Balm controls 43% of the Calgary-based oilfield services and production company's stock and is its largest shareholder. He has offered to invest $20-million in Fracmaster to give it some "breathing room" while he leads a restructuring and recapitalization, his Houston-based investment banker said yesterday. "Mr. Balm . . . believes that with a recovery [in oil prices], and with a restructuring of the company, the company again would have a future. And so there could be value to the creditors in keeping the company together, to the employees and ultimately for the shareholders," said Nicholas Swyka, managing director of Houston-based Simmons & Co. International. The sale of Fracmaster's assets to UTI, for an undisclosed ammount, was announced by the company's board late Tuesday after it evaluated several proposals. Because of creditor claims against Fracmaster, the sale to UTI would leave nothing for shareholders. Mr. Balm's plan was not one of the options considered by the board. The UTI proposal is scheduled to be presented tomorrow to the Alberta Court of Queen's Bench. Mr. Balm is expected to oppose the sale at the hearing. "I don't know that he appreciated that they were considering selling the assets of the company at this stage. Once he realized that, that the assets would be sold at a depressed time, he came to the conclusion it would be better to keep the company alive," Mr. Swyka said. Fracmaster's stock-market value has plummeted to $20-million, from more than $1-billion in the fall of 1997, because of the oil price collapse, uncertainty about the company's future after Mr. Balm's exit, and the effect of the Russian economic crisis on its operations there. The announcement of the proposed sale to UTI caused the Toronto and New York stock exchanges to suspend trading yesterday in Fracmaster's shares. Mr. Balm's proposal would see him return as chairman of Fracmaster. He would oversee any executive changes, Mr. Swyka said. The restructuring would involve rebuilding the oilfield services company's North American operations, which are run from headquarters in Calgary. The proposal represents a change of heart for Mr. Balm, who last fall told National Post he had no plans for a return at Fracmaster's helm as he wanted to concentrate on other businesses. For example, Mr. Balm is the sole owner of QC Data International Inc., a Calgary-based data management company with 900 employees. Other shareholders are also contemplating investing funds in Fracmaster as part of Mr. Balm's bid, Mr. Swyka said. "Based on that, if the banks were to agree to a proper restructure, we are confident other funds could be raised," he said. While details have yet to be worked out, Mr. Balm could end up with a larger stake in the company as a result of the investment, Mr. Swyka said. "It's his feeling that the ultimate recovery to all parties would be higher under this arrangement than it would be by just selling assets today," Mr. Swyka said. Current shareholders could also benefit from a company rebound, he said. Mr. Balm was the company's chairman and chief executive officer when he sold his 67.5% interest in September, 1997, in a deal that allowed investors to pay in two instalments. Many investors defaulted on their second payment last fall as Fracmaster's share price plummeted, causing Mr. Balm to lose $177-million and returning him as the company's largest owner. Mr. Balm recently launched court proceedings in Calgary to recover his money. Mr. Swyka said Mr. Balm's new plan is separate from the instalment receipt issue. This March 19, Fracmaster sought protection from creditors after a lengthy sale process failed to yield a buyer.