% | $
Quotes you view appear here for quick access.

Gastar Exploration Inc. Message Board

  • hddriven hddriven Aug 19, 2013 10:48 AM Flag

    GST news

    just released, Cubic exercised their option to extend the deal for one more time til end of aug, Cubic paid the additional deposit of $1.15 million for a total of $4.6 million that GST has received from Cubic.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • At this rate, GST will make more money on Cubic deposits than on the sale... just hope the funds are escrowed

    • dragon_legal_department dragon_legal_department Aug 19, 2013 11:42 AM Flag

      Yeah, I don't see this as that much of a long term negative. (Short term, this quarter, sure, if the don't close at all.)

      They close, they close, great.
      They don't close, GST just made some nice coin on the deal anyway.

      And they clarified all the questions asked at the last extension:
      "Per the terms of the extension agreement, Cubic Energy has paid an additional deposit of $1.15 million to Gastar bringing the total non-refundable deposit received to $4.6 million, or 10% of the transaction's $46 million value."

      So GST has the money, it's been paid, AND it's not refundable.

      I'm good with that.

      Sentiment: Strong Buy

      • 2 Replies to dragon_legal_department
      • The Bankruptcy Code permits a trustee (or a debtor in possession) to recover from creditors payments made shortly before the bankruptcy filing where the payment gave the creditor more than other, similarly situated, creditors would get through the bankruptcy process.

        The policy behind the statute is to diminish the advantages that a creditor might get by litigation or by aggressive collection actions that force the debtor into bankruptcy. That is accomplished by making payments received in the 90 days before the filing recoverable in bankruptcy.

        Cubic Energy will go into Bankruptcy if this Deal is not done.


      • I'm with your, long term this is not big deal, but short term the shorts and flippers will make this mole hill into mountain. Luck I've got plenty of dry powder and will be ready to start accumulating.

0.9552-0.0260(-2.65%)11:19 AMEST