ROLTA wrongly prioritizes Stockholders ahead of Bondholders

We are pleased to see that Rolta (NSE:ROLTA) has reported steady and improving profits, as well as free cash flow, when comparing its year over year numbers.  We welcome this continued vigilance, but the company’s absurd proposal to their bondholders in regard to a debt restructuring is a wanton disregard for their (bondholders) senior claim on company assets, and should be NOT be taken.

Gran Colombia Bondholders Should Vote Against New Plan

Gran Colombia Gold (TPRFF) has reported strong first half of 2015 results, including a 6% year over year increase of revenues and a 25% reduction of all-in sustaining cost (“AISC”), which resulted in an adjusted net income of $0.13 per share, compared with an adjusted net loss of $0.54 per share the first half of the year prior. We expect that the increase in 2015’s gold production, coupled with the reductions in total cash cost per ounce sold and G&A expenses, will continue to result in increased net income. As a result of this, Distressed Debt 1, LP has taken a position in the company’s 5% senior unsecured bonds (the Silver notes, due in August of 2018), and we oppose the company’s debt restructure proposal under the Business Corporations Act Read More …

Our Distressed Debt Selection Process

Our distressed debt selection process After our initial daily screening of global bond issues for yields and maturities:      We review the issuer’s most recent quarter and year end financials and its relative performance to the industry segment it’s within for any signs or indications that their financial woes may have changed course.      If issuers show multiple signs of a turnaround (most do not, as they simply are just waiting for the climate that affected them to improve), we mark only the top 25% of them for further review.      In more intensive review, we compare the debt load to revenues, income, gross profits, cash flow, cash on hand, asset valuations (vs. book valuations), etc.  We believe debt to asset valuation outweighs minimal profits or low coverage ratios.      We then review its Read More …