Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, January 9, 2009

Article Excerpt

OILEXCO INC., $0.19, symbol OIL on Toronto, announced last week that its UK subsidiary Oilexco North Sea Ltd. intends to file for bankruptcy protection. The UK subsidiary holds almost all of Oilexco’s assets. In December, 2008, The Royal Bank of Scotland, Oilexco’s main lender, provided $47.5 million U.S. in bridge-financing due January 31, 2009. That provided Oilexco with just over a month to restructure. However, Oilexco said that it needed incremental short-term financing in addition to the bridge loan. In late December, 2008, the Royal Bank of Scotland informed Oilexco that lenders were not prepared to provide any further financing, prompting the bankruptcy petition. Petro-Canada, BG Group plc and Talisman Energy have reportedly expressed interest in some of Oilexco’s assets. However, after seeking bankruptcy protection, Oilexco’s assets are likely to be sold at discount prices, leaving little for shareholders. Oilexco is now a sell. NEW GOLD, $1.83, symbol NGD on Toronto, has closed its Amapari gold/copper mine in Brazil. The mine was…

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