Toreador Resources shareholder asks company to cut debt, sell assets

By Lisa Kerner

Charlotte, N.C., Dec. 5 - Toreador Resources Corp. investor Nanes Balkany Partners I outlined several ways the company could rebuild shareholder value in a Dec. 4 letter included as part of a schedule 13D filed with the Securities and Exchange Commission.

Nanes Balkany, with a 5.1% stake in the company, suggested Toreador:

• Reduce its large debt and overhead expenses;

• Begin a share buyback program for at least 2 million shares; and

• Retain an investment bank to begin an open bid process to sell certain Toreador assets.

In making its recommendations, the investor cited Toreador's "dismal share price performance" which it said cannot be excused by turmoil in world financial markets.

Nanes Balkany said it believes a "significant portion of the company's stockholder base will support our belief that it is time to implement a cohesive plan to turn around Toreador."

In closing, Nanes Balkany reserved the right to seek board representation if its concerns about Toreador's performance "continue to fall on deaf ears."

Toreador recently announced the adoption of a stockholder rights plan that creates a dividend of one right for each outstanding share of the company's common stock.

As previously reported, the rights would be triggered if a person acquires 15% or more of the company's common stock or a tender or exchange offer is made that, if completed, would result in the bidder beneficially owning 15% or more of the Dallas oil and gas company's common stock.

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