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).


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 !