It makes sense now... This chapter 11 is in order to buy time and protection while Kinder Morgan takes over most of GMXR. I believe the deal is already done. Black & Coop knew of this months ago as they were both close to Enron in which KM spun off of.
Kinder Morgan will be buying the Cotton Valley Sands remaining 60% for 100M + premium. Kinder Morgan also will be obtaining certain items / properties at a deep discount. This deal was put together with the help of Jefferies LLC.
The two units that are part of the 11 are losing money like crazy, those will be sold off for what they hope is enough to satisfy the debts. I bet that Halliburton is somehow involved.
There are a lot of interesting variables here, Endeavor being just one of them. The Haynesville property is interesting -- you can look at current gas prices and say the whole play is uneconomical and not worth very much, or you can say that when LNG export terminals get built (and supposedly GMXR's land is closest to the proposed locations) in a few years, the land is going to be worth a ton as NG is selling for $9-10 in Europe and $13-$18 in Asia. Niobrara could be a bust a worth very little, or it could hit and be worth a significant amount of $. Bakken is also interesting -- does the steep decline rates we've seen mean GMXR's land isn't in the "fairway" (Wist's term) or does it mean that GMXR is a very inexperienced and inept shale oil driller, or some combination of the two?
As I've disclosed before, I only own the 2015 bonds. I'm sweating hard, and think several things need to go GMXR's way for the asset sale to cover 50-100% of these sub bonds. I think EVERYTHING would have to go GMXR's way for the preferreds to see much recovery, and I'm afraid the common is without hope absent a miracle.
I think you are dreaming. The Endeavor services GMXR property but to my memory is not a major conduit. . Pipelines need thruput to be profitable and the GMXR property has been reducing volume. This is a minor self contained asset with a percentage interest sold in the heyday of the Haynesville. Your valuation seems well above a reasonable market value and why would Haliburton be involved?
Liquidate toxic assets and operations, sell profitable strategic parts at a premium. That's what chapter 11 is for. Business 101. Will I make money no, will fat Kenny yes. GMXR has attorneys to make sure it works out for him on OUR dime.