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.

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

To: jsavage who wrote (163)	4/30/1999 12:01:00 PM
From: blue_chip	Read Replies (1) \| Respond to of 233

Balm launches court fight to rescue Fracmaster Chris Varcoe, Calgary Herald A showdown in a Calgary courtroom today could spell the end of Fracmaster Ltd. as a public company -- or the unlikely return of Alfred Balm to resurrect the troubled oil services firm. Lawyers for the Geneva-based millionaire say they'll appear in Alberta Court of Queen's Bench this afternoon seeking time to prepare a bid to rescue the insolvent Calgary-based business. The former company chairman has offered to inject $20 million to revive the international oil services company and now has the support of Southeastern Private Investment Fund LLC of North Carolina. The fund issued a statement Thursday offering to contribute at least $5 million US to the plan in exchange for securities. On the other side of the courtroom will sit representatives of Fracmaster and its would-be buyer, Houston-based oil services firm UTI Energy Corp. Both those parties want approval to sell Fracmaster's assets to the U.S. rival for an undisclosed amount. The deal would leave Fracmaster shareholders empty-handed, but keep the company going as a private entity. "I don't know what's going to happen, to be honest," Fracmaster chief executive Les Margetak said Thursday. "It all depends what the judge thinks." The twists and turns involving Fracmaster have more intrigue than a Tom Clancy spy novel. One of the first Western oil companies to go into the former Soviet Union, it made millions offering well-stimulation services in Russia, the United States and Canada. That changed last year, when the company lost $137 million due to the Russian currency devaluation and falling oil prices. Meanwhile, a plan by Balm to sell off his stake in the company ran into problems. About 70 per cent of investors failed to make the second of two installment payments to Balm for his shares last fall, after they lost 75 per cent of their value in one year. The European financier is now suing about 100 investors and issued three new statements of claim against 13 parties on Thursday. Against this backdrop, Fracmaster has been operating under creditor protection since mid-March, owing about $115 million. After failing to attract an acceptable bid last winter, the company put itself back up for sale last month and finally found a buyer late Tuesday. The UTI proposal has the support of Fracmaster's banking syndicate, led by the Royal Bank. UTI Energy would likely retaining Fracmaster's name and its existing 660 employees in Canada and abroad, said UTI chairman Mark Siegel. But Balm, who owned 67.5 per cent of the company in the mid 1990s, made his surprise proposal Wednesday to recapitalize Fracmaster. His Houston investment banker said Balm would invest $20 million as a private loan and receive warrants in return. He would also take over as the company's chairman. A major U.S. energy fund and one unnamed "important shareholder" have already indicated they would back this plan, said Nicholas Swyka of Simmons & Co. International. Balm's Calgary-based lawyer William Smith said his side needs to obtain current financial information from Fracmaster and will seek a two-week delay in the UTI sale. Siegel said his lawyer will ask the court to reject Balm's request for a delay because the company's financial position is deteriorating. He said Balm previously refused requests by Fracmaster's bankers to put more money into the company and missed last week's deadline to make offers. "It should be treated with contempt because at this point, it's absolutely ridiculous," he said. "This offer is way too late and absurdly too little." But Balm has some supporters. "Balm's plan gives everybody upside - some upside, anything, rather than in UTI, where (our) money is gone,'' said one retail shareholder, who stands to lose about $10,000 in the company. As for the company, Margetak said Fracmaster's board and banking syndicate have formally accepted the UTI deal and the former chairman's offer is "too late." Whatever happens, however, he wants the matter resolved quickly. "We've been through a lot as a company over the last eight or nine months,'' Margetak added. "We all want to get back to work."

To: jsavage who wrote (163)	4/30/1999 12:21:00 PM
From: blue_chip	Read Replies (2) \| Respond to of 233

No I didn't think they would jump for joy. They are looking out for their own interests and NOT the interests of the shareholders. Mr. Margetak should be ashamed at himself. The last I knew he worked for US and NOT UTI. "We've been through a lot as a company over the last eight or nine months,'' Margetak added. "We all want to get back to work." That quote from him is a JOKE. Sure, screw all your shareholders, and your employees while your at it. Just as long as you can go back to work!! Attention all UTI makes no guarantees! "It should be treated with contempt because at this point, it's absolutely ridiculous," he said. "This offer is way too late and absurdly too little." Is this the attitude of a Chief of a Company??? To give up in the 11th hour??? Would he have the same attitude if perhaps there wasn't something for HIM in the deal?? What is this $750,000.00 for?? You bet your life he'd be fighting for another deal if this one left him out in the cold. What is happenning is criminal!! MR. MARGETAK, YOU HAVE SOLD FRACMASTER, CANADIANS, YOUR SHAREHOLDERS, AND YOUR EMPLYEES OUT!! SHAME ON YOU! I would give back every share I own to Mr. Balm before I would see this sale go through and walk away from my losses with pride knowing Fracmaster stayed Canadian. Id also personally throw in a few extra bucks to be at the front of the crowd to see this TRAITOR get a nice swift kick in the as! My concern his is not the money, it is the principle! UTI says they want to keep frac running, they just want to own it. My question is, if this is such a sinking ship why would they want it. Why would the CEO want them to have it so bad that he would betray his shareholders. I liken Mr. Margetaks attitude to this 11th hour deal to a Captain of a sinking ship, who instead of going down with the Titanic hops on a life boat and denys another the seat with his only goal to save his as and not his SHIP! Let me be the first to say it Mr Margetak, YOUR OUTTA HERE!!!!!!!!!!!!!!!!!