A Little Note On Otto Marine Bonds
Shares and bonds took a hit today after a creditor lawsuit for $1.2 mil which has been described by a friend as a “petition of vexatious nature”. http://www.straitstimes.com/news/business/markets/story/otto-marine-shares-tumble-creditor-seeks-liquidation-20150427
Because a $161 mio market cap company does not get wound up for 1.2 million ? and would be a real tragedy if it did !
As the company has not come out with much news other than it was in talks with the creditor, anxious investors decided to take matters into their own hands to sooth their fears.
Bond prices were apparently 90 bid in the morning and I am not sure if anything went through because we had a 90 offer early afternoon and the bid shifted to as low as 85 indicatively (ie. no firm bid).
The investment dilemma lies in the fact that the company has not been profitable for a while and that their market cap has fallen by half since their bond issue last year which means I am not sure if any financial covenants have been breached as my PC is still down (fried by Friday’s lightning storm).
https://tradehaven.net/market/sgd-new-issue-review-otto-marine-2-year-7/
I shall come back soon with some updates. If anyone knows anymore, do hasten to post comments for the benefit of other investors.
Good luck !
Otto Marine update (from SGX announcements):
Following the announcement made on 25 April 2015, Otto Marine Limited (the “Company”) wishes to announce that the Company has fully paid up the Debt of USD 200,000 and EUR
900,000 to the Creditor, and the Creditor has undertaken to withdraw the Application.
The Company has taken all reasonable care to ensure that the facts stated in this announcement are fair and accurate in all material aspects as at the date hereof and that no material facts have been omitted from this announcement.
The event is not expected to have a material impact on the financials of the Company for the financial year ending 31 December 2015.
Bond price drastically lower this morning, more to discourage selling … not sure where it is but would think 70-90 would seem safe enough to protect the banks.