Oklahoma City, Oklahoma, Monday, April 1, 2013. GMX RESOURCES INC., NYSE: ‘GMXR ’; an oil and gas exploration and production company with assets in the Williston Basin, East Texas Basin and Denver Julesburg (“DJ”) Basin announced today that it has filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court (the “Bankruptcy Court”) for the Western District of Oklahoma. In connection with this petition, GMXR is pursuing an asset purchase agreement with holders of its Senior Secured Notes due 2017 who own a majority of these secured notes (collectively referred to below as the “Principal Senior Secured Noteholders”) to acquire substantially all of the Company’s operating assets and undeveloped acreage. The Company’s joint venture, Endeavor Gathering LLC, in which the Company owns a 60% membership interest, is not included in the filing.
They had a 1:13 RS on 1/4/2013 factor that in to the $50 to $100 range and they were not doing that well for years.
As is usually the case a RS is the kiss of death, they only lasted 1 quarter maybe an all time record for crashing on the rocks.