Nov 27 2015

International Real Estate & British Pound: Two ETFs Trading with Outsized Volume

In the last trading session, US stocks were in the red mainly on a sooner-than-expected rate hike prospect in the US Among the top ETFs, investors saw SPY lose about 0.4%, DIA shed over 0.3% and QQQ move lower by over 0.1% on the day.

Two more specialized ETFs are worth noting in particular though as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues:

(IFGL – ETF report): Volume 5.00 times average

This developed international real estate ETF was under the microscope yesterday as nearly 850,000 shares moved hands. This compares to an average trading volume of 169,630 shares and came as IFGL gained over 0.7% in the session.

The movement can largely be attributed to the ongoing accommodative policy measures in Japan and Europe, as this can have a big beneficial impact on rate-sensitive real estate stocks like what we find in this ETFs portfolio. In the last one-month period, IFGL was down about 3.5%.

(FXB – ETF report): Volume 3.42 times average

This British currency ETF was in focus yesterday as roughly 49,000 shares moved hands compared to an average of roughly 14,250 shares. We also saw some stock price movement as shares of FXB added about 0.7% yesterday.

The fund advanced on a seven-year low UK unemployment level and slight weakness in the greenback yesterday. In the last one-month period, FXB was down about 0.9%.

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Nov 27 2015

Banks Beware: DIP Loans May Prime Setoff Rights

The Court: Where do you get a right under 364 for that purpose?

This question was posed to counsel seeking to have a debtor in possession (DIP) loan1 prime a setoff right, a situation which if not monitored and timely objected to may result in a bank (or other entity with a setoff right) effectively losing its setoff right. Setoff is a matter of state law and varies according to state law, but the doctrines purpose is to avoid the absurdity of making A pay B when B owes A.2 In perhaps the most familiar setoff scenario, a debtor in bankruptcy may be both a borrower and a depositor at the same bank, with the bank holding, at times significant, deposits that it may wish to setoff against what the debtor owes on its loan.

Based solely on the language of the Bankruptcy Code, it would appear that the Code preserves the banks right to setoff as it would exist under nonbankruptcy law.3 However, in practice, DIP financing orders may contain language specifically priming setoff rights.4 In other instances likely occurring more often and of more concern to banks with a common depositor/borrower the proposed DIP order contains broad language priming all interests. Courts entering orders containing such language may be doing so either without an intention to alter setoff rights, or these courts may be doing so pursuant to a broader interpretation of the term lien in 11 USC. sect; 364 and/or pursuant to the general equitable powers of 11 USC. sect; 105. This may be the case because, notably, there is a dearth of authority explicitly holding that a DIP order may prime setoff rights, although examples of DIP orders with such explicit language exist.5

Practitioners seeking to prime setoff rights may be advancing the following argument in favor of doing so: if the deposited funds are a significant or primary asset of the debtor, and the banks right to setoff is not primed, the DIP lender will not receive the secured position that it may typically expect and desire.6 While many DIP loans end up being approved with the consent of secured lenders, a bank seeking to oppose such a proposed DIP order should consider asserting that a DIP loan proponent lacks legal authority to prime setoff rights, and that there can be no meaningful adequate protection for its interest in the deposited funds if its setoff right is primed.

If timely and proper opposition is raised with the Court, DIP orders seeking to prime setoff rights (whether using specific or catch-all language) may face this articles introductory question, which was originally posed by New Jersey Bankruptcy Judge Morris Stern, along with skepticism as to the authority to prime setoff rights, which Judge Stern expressed as follows:

The Court: If Title 11 cant affect any right of a creditor to setoff but for 362 and 363, I think you have no argument at all. And to the extent that youve advanced this argument in many courts, I think youve made a mistake and the courts, if theyve granted it, have made a mistake. Theres no impact of setoff rights by virtue of the Bankruptcy Code if 553 is complied with except with respect to the automatic stay, and certain aspects of 363, which are totally irrelevant here.7

To unpack Judge Sterns comments, the section of the Bankruptcy Code specifically addressing DIP financing, 11 USC. sect; 364(d), provides that a DIP loan may prime liens but says nothing of priming setoff rights. Likewise, the section of the Bankruptcy Code, specifically addressing setoff, 11 USC. sect; 553, provides that the Bankruptcy Code does not affect any right of a creditor to offset a mutual prepetition debt owing by the creditor to the debtor against a prepetition claim of the creditor against the debtor, except as provided in sect; 362 (providing that the automatic stay applies to setoff rights) and sect; 363 (providing, inter alia, for use by a debtor of property of the estate and for sale of such property free and clear of interests of others in the property in certain circumstances).8 The setoff provisions of sect; 553 make no mention of the DIP financing provisions of sect; 364. Thus, Judge Sterns question: where is the authority to prime setoff rights?

The answer: nowhere explicitly in sect; 364, at least inasmuch as a court finds that a setoff right, while treated as a secured claim by at least one other section (sect; 506) of the Bankruptcy Code, is not a lien.9 The Third Circuit US Court of Appeals has held as much where, in the context of a sect; 363 sale, it distinguished a lien from a setoff right:

The terms lien and setoff have also been distinguished within the purview of sect; 363(f). In Marley v. United States, 180 Ct. Cl. 898, 381 F.2d 738, 743 (Ct. Cl. 1967), the Court of Claims noted that the terms setoff and lien connote independent concepts, governed by distinct legal principles. The court turned to the definitions of these terms to illustrate its point. Setoff, the court stated, referred to situations where both plaintiff and defendant have independent causes of action maintainable against each other in separate actions which can be mutually deducted whenever either one brings a suit against the other. In contrast, the court noted that a lien has been defined as a charge or encumbrance upon property to secure the payment or performance of a debt, duty, or other obligation. It is distinct from the obligation which it secures.

It is clear from the definitions of lien and setoff that the term setoff does not refer to the same type of interest as a lien. A lien is distinct from the obligation it secures while the same is not true of a right of setoff or recoupment. They have no value separate and apart from a debtors or purchasers claim.

Folger Adam Security, Inc. v. DeMatteis/MacGregor JV, 209 F.3d 252, 259-260 (3d Cir. 2000) (internal citations omitted).

Folger is consistent with the text of 11 USC. sect; 506, which uses both the term lien and the term setoff in defining a secured claim, thus distinguishing between these two concepts:

[a]n allowed claim of a creditor secured by a lien on property in which the estate has an interest, or that is subject to setoff under section 553 of this title, is a secured claim to the extent of the value of such creditors interest in the estates interest in such property, or to the extent of the amount subject to setoff, as the case may be…

11 USC. sect; 506(a)(1) (emphasis added). Thus, the text of sect;sect; 364, 506 and 553, as well as the language of Folger, provide support for the view that setoff rights cannot be primed under sect; 364.

Putting aside the arguments and authority for or against priming setoff rights, orders priming setoff rights, once entered by a bankruptcy court, may be very difficult for a bank with a common borrower/depositor to challenge after the fact. The bottom line for such banks is to beware of such proposed orders, particularly those containing generic language priming all interests, and object as necessary or appropriate to ensure that their setoff rights are preserved.


1A debtor in possession (DIP) loan provides financing for Chapter 11 debtors while in bankruptcy and frequently includes provisions priming existing liens (ie, providing the DIP lender with the most senior priority, notwithstanding liens that may have been recorded earlier in time by other parties).
2Studley v. Boylston Nat. Bank of Boston, 229 US 523, 528 (US 1913) (discussing setoff of mutual prepetition debts and the rationale behind the doctrine). While the Bankruptcy Code requires, but does not define, mutuality,state law often provides that setoff exists if the parties and their capacities are the same, even if the transactions are different. See, eg, In re Patterson, 967 F.2d 505, 510 (11th Cir. 1992) (applying Alabama law).
3See 11 USC. sect; 553(a); see also, eg, In re Patterson, 967 F.2d at 509 (setoff right, as it exists under state law, is preserved by 11 USC. sect; 553).
4See, eg, In re deCODE genetics, Inc., No. 09-14063, 2009 Bankr. LEXIS 5013, at *13-14
(Bankr. D. Del. Dec. 11, 2009) (Except as set forth herein, the DIP Lenders Liens under this Final Order and the DIP Loan Agreement shall continue to be at all times first and senior in priority to all other liens, encumbrances or security interests of every kind and shall not be subordinate or pari passu with any other lien, encumbrance or security interest or right of setoff, including liens in respect of the Prepetition Note Obligations, and no [sic] Hen, encumbrance or security interest shall be permitted which shall be senior to or pari passu with the DIP Lenders Lien granted hereunder or under the DIP Loan Agreement.) (emphasis added).
5See supra text accompanying note 4.
6For instance, the DIP lender might ask for a bank account control agreement in the alternative.
7See In re St. Marys Hospital, No. 09-bk-015619 (Bankr. D. NJ Mar. 31, 2009), ECF No. 140 at 67:3-11.
8The Bankruptcy Code also limits the ability to setoff disallowed claims, certain claims transferred by an entity other than the debtor, and certain claims incurred by the creditor for the purpose of obtaining a right of setoff against the debtor. See 11 USC. 553(a)(1)-(3).
9A lien is defined by 11 USC. sect; 101(37) as acharge against or interest in property to secure payment of a debt or performance of an obligation.

Nov 26 2015

Editorial: Abusive real estate practices still evade legal microscope

What a shame if a new state law designed to help cities join the prosecutorial fight against real estate scam artists languished unused. The law, which became effective Sept. 1, was inspired by a multipart series of Dallas Morning News editorials and columns focusing on the real estate exploits of Douglas T. “Chase” Fonteno and his associates.

The Dallas city attorney’s office has welcomed this year’s enactment of HB 2590, which broadens city powers to take prosecutorial action. But officials are hamstrung by restrictions that prevent the pursuit of potentially fraudulent activity that occurred before the law took effect.

Nov 26 2015

Conrail Tries To Cut First Responders From Derailment Suit

By Jeannie OSullivan

Law360, New York (October 13, 2015, 4:32 PM ET) — Consolidated Rail Corp. has urged a New Jersey federal judge to whittle lawsuits filed by 20 first responders from litigation over a South Jersey derailment, arguing they never sought medical attention for their alleged injuries.

A Conrail train derailed in New Jersey in 2012, spewing hazardous gas from a ruptured freight car. (Credit: AP)

In its summary judgment bid Friday, Conrail said that the 20 law enforcement and fire department personnel had accused the railroad of negligence and sought damages for personal injuries after the 2012…

Nov 25 2015

Edward Phillips, Partner, EisnerAmper LLP, to Speak at KC’s Event

New York, NY, November 10, 2015 –(– The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that Edward Phillips, Partner, EisnerAmper LLP, will speak at the Knowledge Congress webcast entitled Instability and Bankruptcy of a Counterparty Company: Exposing the Risks in 2016 LIVE Webcast. This event is scheduled for December 8, 2015 @ 10:00 am 12:00 pm (ET).

For further details, please visit:

About Edward Phillips
Edward Phillips is a Partner in the firms Bankruptcy and Restructuring Group. He has nearly 30 years of finding solutions to problems in bankruptcy, restructuring, liquidation, accounting and forensic accounting matters. Ed has represented a variety of parties and functioned in a number of roles in bankruptcy proceedings, out-of-court restructurings, forensic accounting engagements and post-confirmation engagements.

Ed has worked with numerous debtors, creditors committees and secured lenders. He has been retained as a Chief Restructuring Officer. Additionally, he has acted as a disbursing agent, plan administrator and liquidating trustee for post-confirmation committees. He has been an elected Chapter 7 Trustee. He has been appointed as a receiver in the Delaware Chancery Court, a Permanent Receiver in the United States District Court for the Middle District of Pennsylvania, and a Liquidating Trustee in the United States District Court for the Eastern District of Pennsylvania. He has provided acquisition due diligence services to buyers of distressed assets. He routinely consults with and advises clients involved in avoidance actions such as preferences and fraudulent transfers. He has served as an expert in evaluating avoidance actions and other financial matters in dispute.

About EisnerAmper LLP
EisnerAmper LLP is a leading full-service accounting, tax and advisory firm, and among the largest in the United States. We provide audit, accounting, and tax services, as well as corporate finance, internal audit and risk management, bankruptcy and restructuring, litigation consulting, forensic accounting, and other professional advisory services to a broad range of clients across many industries. We work with closely held businesses, public companies, high net worth individuals, and Fortune 500 companies. With offices in New York, New Jersey, Pennsylvania, California and the Cayman Islands, and as an independent member of PKF International, EisnerAmper serves clients worldwide.

Event Synopsis:
Global economic turmoil and an environment of increasing interest rates in the US could increase the likelihood of bankruptcy filings. Insolvency can have profound effects for both debtors and counter-parties doing business with the company. Recovering funds from a debtor under bankruptcy protection is difficult for creditors who have been unable to collect monies owed. However, prior to a bankruptcy, when a company is in distress, creditors can adopt certain strategies to minimize the negative impact of a bankruptcy filing. Generally, upon the filing of a bankruptcy petition by a debtor, an automatic stay arises on property of the estate. In certain instances – forward contracts, master netting agreements, and swap agreements – the Bankruptcy Code allows parties to terminate and liquidate rights and to foreclose on collateral, but prompt evaluation of qualification is critical. While it can be difficult for creditors to recover funds in bankruptcy, there are still ways they can minimize the impact and maximize recoveries. An understanding of the Bankruptcy Code is critical.

It is in the best interest of counter-parties to understand the risks faced by companies with declining credit worthiness prior to their filing for bankruptcy. In these challenging times, all companies should assess and try to mitigate counter-party risks. It is prudent for every business to know the financial status of its counter-parties, customers, suppliers, and vendors. It is also essential to analyze and amend business terms, consider termination or review renewal of expiring contracts, analyze aging accounts receivable, reduce preference exposure, determine and improve available rights and remedies, and understand and protect their rights under bankruptcy.

In this two-hour, Live Webcast, a panel of distinguished professionals and thought leaders assembled by The Knowledge Group will help creditors understand the important aspects of this significant topic. Speakers will review and discuss Instability and Bankruptcy of a Counter-party Company: Exposing the Risks in 2016. The panel of speakers also will offer best practices in developing and implementing an effective program to mitigate credit risks, reduce counter-party bankruptcy exposure, and to recover funds.

Key topics include:
middot; Key provisions of the Bankruptcy Code
middot; Creditors Rights
middot; Types of Claims
middot; Recovery Options
middot; Involuntary Bankruptcy Petitions Pros, Cons and Risks
middot; Safe Harbor Provisions
middot; The Automatic Stay
middot; Executory Contracts
middot; Preferential and Fraudulent Transfers
middot; Development and Implementation of Effective CMS
middot; Compliance and Litigation Risks
middot; Best Practices

About The Knowledge Group, LLC/The Knowledge Congress Live Webcast Series
The Knowledge Congress was established with the mission to produce unbiased, objective, and educational live webinars that examine industry trends and regulatory changes from a variety of different perspectives. The goal is to deliver a unique multilevel analysis of an important issue affecting business in a highly focused format. To contact or register to an event, please visit:

Nov 25 2015

4 Ways to Kick-Start Your Career in Real-Estate Investment

Join us at Entrepreneur magazines Growth Conference, Dec. 15 in Long Beach, Calif. for a day of fresh ideas, business mentoring and networking. Register here for exclusive pricing, available only for a limited time.

I was in my early 20swhen I began investing in real estate, and while I knew theintricacies of real estate itself –investing was another story. Over the past two decades of investing, Ive learned a few rules I wish I would have known from the beginning.

The real estate market is constantly fluctuating, but many of the basics stay the same –as do these four rules. To jump start your career in real estate investment, here are the rules to follow.

Related:Star of Million Dollar Listing Says Anyone Can Make Money in Real Estate

1. Dont wait for the right time.

Much like the stock market, in real estate were always skulking and waiting, ready to pounce on what we believe is the perfecttime to jump into the market. Im here to tell you –dont keep waiting. You can spend the next few years waiting for the perfect time, but if you have the startup funds and are eyeing a particular set of properties at a good deal, its best not to wait.

Start out simple. Buy one or a few properties and go from there. The earlier you begin investing, the sooner your properties will begin to appreciate and, in turn, provide you with more capital to start your next venture.

2. Start bigger, sooner.

Its perfectly fine to begin investing in smaller, low-end properties –but thats not how you build an empire. As soon as you have the hang of investing, dont hesitate when it comes to acquiring larger properties. Larger assets tend to appreciate faster and can be more beneficial to your portfolio as opposed to smaller, cheaper properties.

When considering if you should go bigin real estate or return to the stock market, there are two more things to consider: 1)Properly investing in the stock market will cost you on averagethe same as investing in real estate, and 2) In real estate, even when the market crashes, you will still have a tangible asset to salvage. Of course, there are many other nuances when comparing the two, but to become a real estate mogul –youll have to stick to real estate.

Related:6 Advantages of Real Estate Investing for Savvy Entrepreneurs

3. Dont sell appreciating assets just yet.

When were young, we tend to be quick to sell in hopes of making a return. This is the worst thing you can do in densely populated areas or up-and-coming cities. In these hot markets, the longer you wait to sell, the better. Across the country, in places like Seattle and Houston, many properties have doubled in value over the past three years.

Many of these properties will continue to appreciate, so determining when to sell is more complicated than simply seeing a slight return. Keeping track of market forecasts will help to determine when its time to sell. This is also something that will be learned with experience.

4. Invest using a self-directed individual retirement account (IRA).

As an investor and entrepreneur, you should always be on the lookout for ways outside the obvious to improve your return. When using personal funds to invest, the best way to do it is through a self-directed IRA. A self-directed IRA is the same as the usual IRA, however, it allows alternative investments for your retirement savings. By investing through an IRA, you can avoid using your taxed income. Most banks have this option, so its best to speak with a financial advisor before diving in head first with this kind of investment –and remember to leave yourself with something for retirement.

Save yourself some trouble and remember these rules along with the basics when youre in the beginning stages of real estate investment. With so many details to consider, these simple rules can easily be overlooked.

Related:8 Ways Real Estate Is Your Smartest Investment

Nov 24 2015

Where The Chicago Real Estate Market Is Still Dead

Everyone knows that the Chicago real estate market has come roaring back. Prices are up, sales are up, and the mix of distressed property sales is way down. In particular, its the dramatic decline in sales of distressed properties that would lead you to believe that we have mostly recovered from the housing bubble meltdown. Just check out the 4th graph on my October Chicago real estate market update from Monday.

The only catch is that we know better than to believe that the recovery has been uniform across the city. So just how disproportionate has it been? I tried to answer that by looking at the percentage of distressed sales by zip code for October – only where I had at least 10 closings to work with. I produced the heat map below where dark blue is essentially zero distressed sales and dark red is close to 60%. You can click on that map for a larger version (you may need to click again on the image that loads to expand it to its full size.)

Its really no surprise that areas on the south and west sides are still mired in the aftermath of the housing bust while areas close to downtown and on the north side seem to be pretty much out of the woods. And of course Kenwood and Hyde Park are oases in what is otherwise a desert of foreclosures and short sales.

However, I was wondering how this picture has changed over time. How bad did it get in the areas that are now fine and how much have things improved in the areas that are still troubled? So I picked 3 zip codes that cover the gamut to examine over time. I looked at that deeply red zip code in the lower right corner of the map – 60617 – and 60614, which is essentially Lincoln Park with very few distressed properties selling right now. And then I picked 60605, which is essentially the South Loop and has fallen somewhere between the other two zip codes historically. Because the data is highly variable from one month to the next I looked at a 6 month moving average and plotted the results in the graph below.

First, please note that I dont trust the early data in these time series because I believe there was a time when the MLS did not capture whether or not a sale was distressed. But I could be wrong.

Anyway, you can clearly see the different patterns in these 3 zip codes where distressed sales in 60617 rose much sooner and peaked much higher than the other two zip codes and is still way higher. All 3 zip codes have improved dramatically beginning in 2013 and 60614 always fared better than the other two zip codes, never rising above 20% distressed sales. And 60605 started out and has ended in line with 60614, though it peaked much higher than 60614.

In hindsight none of this is really a surprise but it really drives home the point that the Chicago housing market has not improved uniformly across the city and some areas are still deeply in the red while others are pretty much out of the woods.

#realestate #chicagorealestate #foreclosures #shortsales

Gary Lucido is the President of Lucid Realty, the Chicago areas full service discount real estate brokerage. If you want to keep up to date on the Chicago real estate market, get an insiders view of the seamy underbelly of the real estate industry, or you just think hes the next Kurt Vonnegut you can Subscribe to Getting Real by Email. Please be sure to verify your email address when you receive the verification notice.

Nov 24 2015

Self-help transforms ‘Fargo,’ ‘Mad Men,’ ‘Americans’

Fargo’s Peggy Blumquist looks to transform her life in a very 1979 kind of way: a self-improvement program.

Peggy “wants to get out of Minnesota, but doesn’t have the tools to do that, so she puts all her energy into trying to get to this seminar, Lifespring, because she thinks it’s going to fix everything for her,” says Kirsten Dunst, who plays the married salon worker in the second-season FX drama (Monday, 10 pm ET/PT).

Peggy is just one character from a period drama seeking transformation or personal insight through the growing number of self-actualization programs of that era. AMCs Mad Men, whose finale is set in 1970, and FXs The Americans, set during the Cold War in the early 80s, both have woven that culture into their stories.

Nov 24 2015

HCSO arrests alleged child offender

HCSO received a call on Oct. 4 involving an indecency/exposure complaint. Dep. Cynthia Clements made an initial report, then the case was assigned to HCSO Investigator Cayce Hampton. Officers discovered that a 9-year-old girl made allegations regarding inappropriate sexual contact by Kjeldgaard.

During the investigation, Hampton requested assistance from the Henderson County Child Advocacy Center.  Evidence was obtained during the investigation, and a warrant affidavit for Kjeldgaard was presented to Justice of the Peace Precinct 1 Randy Daniel.

Daniel found probable cause existed for Kjeldgaards arrest and issued a warrant. HCSO Investigators Brad Gray, Cayce Hampton, Robert Powers and Jeromey Rose located Kjeldgaard and took him into custody. Kjeldgaard was transported to the Henderson County Justice Center for booking.

In another incident, Henderson County Sheriffs Office Deputies Dustin Smith and Tracy Dunnington were patrolling the area of Farm-to-Market Road 315, south of Chandler, where they observed a black Chevrolet pickup truck parked at the Flat Creek public boat ramp. They observed a white male under the truck like he was working on the vehicle.

Reports said the officers stopped to see if they could be of assistance, and learned that the identity of the person was Christopher Paul Steinpreis, 27. A check of the vehicle’s license plate showed that the plate belonged to a Dallas Car Credit Corporation, and it had no information on the vehicle it was to be affixed to.

HCSO Investigator Robert Powers, who is attached to the East Texas Auto Theft Task Force, contacted the Dallas Car Credit Corporation. He found that the dealer tag had been stolen about a week earlier in Henderson County.  The theft had been reported to Dep. Dustin Smith on Oct. 9. Deputies Smith and Dunnington arrested Steinpreis for Theft less than $100. Steinpries girlfriend, Chelsea Leanne Remdies, 23, walked up while Smith and Dunnington were conducting their investigation on the vehicle. She was found to have an outstanding warrant for bond violation from Smith County.

Nov 24 2015

Vantage Drilling in Discussions With Secured Lenders and Secured Noteholders …

Vantage Drilling in Discussions With Secured Lenders and Secured Noteholders Regarding Deleveraging Transaction Terms

November 02, 2015: 04:00 PM ET

Vantage Drilling Company, together with its subsidiaries and affiliates (collectively, “Vantage” or the “Company”) (OTC PINK: VTGDF), announced today that it is in discussions with members of an informal group of senior secured term loan lenders and secured noteholders, representing more than $1.5 billion of the Company’s secured debt, on the terms of a deleveraging transaction. The specific terms under discussion remain subject to non-disclosure agreements among the Company and the secured lender group’s members. In connection with these discussions, Vantage has not made a $40.8 million interest payment on its 7.5% senior secured notes and has elected to utilize the grace period under the notes. This interest payment grace period expires on December 2, 2015. No agreement regarding a deleveraging transaction has been entered into at this time, and no assurances can be given that the Company’s efforts will result in any such agreement. The Company emphasized that it continues to maintain ample liquidity to maintain efficient operations world-wide, with more than $200.6 million of available cash on hand.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships; the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage’s primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company’s filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.