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GMX Resources Inc. Message Board

  • joechentva joechentva Apr 25, 2013 3:31 PM Flag

    Let's try again to solve this mystry of pre-pack Chpt-11

    Start with Feb 8 PR, no funding for 2013 capex ($150M) & all debt interests & divi payments. This was beacuse GSO/Blackstone sat on their hands and the other secured mote holders (a few) refuse to swap.
    Then there came the lost of the Kenworthy's heir to the dynesty, the family ego is gone (which prevented accepting many offers last summer for valuable Bakken leases).
    Then hired Jefferies, stopped all interest and divi payments, caused triggering events, SOS was sent.
    Then there were THREATS of external raiders to negotiate with GMXR board (GSO/Chatham not in there) to takeover with (say10M--20M) shelf commons which can be issued by the board's order. Thus both GSO and Chatham filed form-13D on March 11 (they had 6.3M shares =87%) to express may increases their commons significantly as to seek control of the board. Now the internal raiders (GSO, Chatham) are awake. GMXR has successfully transformed to oiler by their 100% economic hits of oil from all ND wells.
    For the internal raiders (the same major Sr note & common owners), the objectives are : (1) $150M of 2013 capex; (2) block external raiders; (3) stop all interets & divi payments; (4) stop all bills; (5) continue opt & drill; (6) increase total EV to $1B by YE; (7) Take costidy of all assets; (8) re-emerge from Chpt-11.
    The revolving $50M DIP loans (super prioity in court filing) met (1), (5) & (6), yet NO doc has spelled out the exact interests of the DIP. Chpt-11 filing met (3)& (4), by filing PLAN for re-org and seek relief. Issued 23.5M add'l shelved commons to the internal raiders, without completing the transaction, thus no need to file Form 8-K until the plan is approved by the court. This act met (2). To purchase the assets with $X, between $281M(Dec 2012) to $565M (1Q 2013), again without completing the transaction, thus no filing until court approval. This would stop ANY creditors (i.e. non-secured & pref) from claiming a lien on the assets, if Chpt-7 follows.
    (to be cont'd)

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    • great drill down Joe... what anshark investation we have.
      Glad to see Gso/blk & chatham controlling the ball.
      None of the un secured creditors could move quickly or methodically.
      As you have detailed greatly in your post. GMXR inside/raiders have
      keenly met those plan critical milestones (take no prisoners)
      CH11 approval is pivitol & Key for Me.....

      Sentiment: Hold

    • (cont'd)
      Since it is GMXR owes those non-secured creditors, not GSO and Chatham (the new onwers to be), there would be no assets under GMXR to claim.

      It is the loop hole of laws when a transaction is not completed, there is no need to file any form. Just to broadcast their plan is sufficient to scare away others, if the threats becoming reality then within a heartbeat GSO/Blackstone & Chatham can come up with big cash, i.e. $2.4 March avg pps for 23.5M shares + $281M for the assets. $500M instant cash is so easy for Blackstone & Chatham combined, the transactions can be completed in a day. The importatnt parts are the agreement with GMXR existing board and the Chpt-11 filing to stall all payments & others.

      Ham, you are correct that GSO & Chatham want to steal/control the company and assets, thus they are the insiders, raiders and major common owners. if they succeed in increasing EV to $1B and re-emerge from Chpt-11, the court filings can be withdrawn while everyone is happy.

    • Still holding my common Joe, but its all but over.......... Good luck

 

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