Having owned the bonds for a little over 6 months, paying 10.75% annualized interest, not missing coupon payments, has been a solid return for my clients considering the collective drawback. Oliver, the ceo, has created TMI, a british virgin islands company, seeking financing to take TMY private, which would pay shareholders $3 a share, which has been proposed. Oliver had trouble getting enough financing to take out everyone...so it looks as thought the company is still entertaining outside suitors...china, india, etc. reportedly, the holdup in selling to a chinese company, which was the initial highest bidder, was that the chinese company also was in the arms business, which Red Flagged in the US. That is what led Oliver to create TMI with the intent of taking the company private by using TMI, british virgin islands, to take out TMY, then selling it in the open market to the highest bidder without US restrictions. They posses significant "real" assets in the South Alibek Field in Khazakastan, all reported, but still being confirmed. They never have made money, hence the buyout...but have significant assets. Jeffrey's suggested a fair market value of around $7/share but I don't think we'll get close to that, based upon Oliver's offer of $3/share in the private deal, research done back in 2007 based upon their valuation, as well, they lended TMY a chunk to keep them afloat during this process. The company stated last week that they should "complete financining arragments shortly" but reports are surfacing that the company is in the process of transferring all licenses to the new company, in Khazakastan, that could take months. 3 month horizon, but could be significantly less if paperwork gets done quicker. bondholders could be taken out at 110 - 115.
$1.3 (02/27/08)
