Linn's stated asset value is an accounting fantasy. The actual MARKET value of dubious assets from a bankrupt company is probably a third of what is actually stated. That's one reason why Linn's bankruptcy filing fails to pay off unsecured creditors, who take precedence over unit holders. Unit holders will receive nothing because there'll be nothing to give them.
Elhertetic, my margin retail acct. was in the very low 7 figures when LINE was in the high 30's and TD Ameritrade wouldn't allow me or (so they claimed) anyone else to short. And I tried several times over a few years. I asked Schwab and Scott Trade (sp?) how I'd fare if I transferred to them. Same response. A friend with Oppenheimer asked them about shorting Linn via his margin acct. (much larger than mine). Same negative response. I don't know what IB is that Mjdux mentioned, but I'd guess that it's a tiny outfit that possibly lays off bets outside the U.S. If so, I'd be really cautious about that.
You might try reading the instructions and check the supplementary guide for Linn's K-1. Of course you have to be able to read.
Not strange at all. For many years now LINE could not be shorted by retail trade, even if you wanted to short against your own long holdings as a hedge. (Moreover, you can't short stocks selling under $5.) While many posters may claim they have shorted, when I challenged them (repeatedly) to name the brokerage that allowed the trade, I never once received a reply. On the internet liars grow like weeds on an untended field.
What's new, Ryan, is that there are people who simply don't pay attention and don't know that they are uninformed. . . . Wait! That's not new either.
Right,Ops. I would completely avoid both LINE and LNCO, and that includes even a brief day trade. There's no knowing how the final adjudications will turn out, so the risk/reward odds are way too dangerous.
That 35% number is weeks out of date. Since then Linn has extended the offer and continued to publicize it. Still, there are always numerous holders who don't pay much attention to company announcements and presentation summaries. They'll be paying for neither understanding nor following their investments. Personally, I think that the taxability of CODI, whether for MLPs, bank forgiveness on percentages of mortgage loans, student loan forgiveness, etc. is blatantly unfair, despite the logic underpinning it.
Selling LINE now would get you out of 2016 CODI. But you're stuck with any 2015 CODI if there's any on your 2015 K-1 (minus the deductions of course).
Do you have a reference in law for this combining over two years, Rouppets? Surely you're not just making it up.
And you'll tell them what, MMC? That you don't like the law? That'll shake them up. Perhaps you can give a private attorney a $50K retainer to sue Linn for . . . well, something or other. If you do the latter, keep in touch. You'll get the final word on the matter in perhaps 2020. Of course you'll be suing a bankrupt company. Come 2020 you could hire another attorney to protest bankruptcy law if you happen to win and receive nothing.. Alternatively, you could just flounder on a Yahoo website and save a bunch of bucks. Or you could even ignore the K-1 (as a few of the board's turkeys recommend) and befriend the IRS when they send you a nice letter next year or so.
It seems to me that these $1 billion of 12% second lien notes are the ones given in exchange for the two billion dollars worth of various discounted notes from the Nov., 2015 deal. To the best of my knowledge there were no 12% notes in existence prior to the Nov. '15 deal. The 4/5/16 announcement refers to a subsequent deal when Linn defaulted.
MMC, once again I'm posting to you that the discounted-bonds purchase was officially concluded on Nov. 2nd, 2015. For Linn to have announced otherwise would have been blatantly illegal and unequivocal fraud. I hope you're not basing any financial decisions on anonymous posters who conceivably discover news items from between their ears and sinister conspiracies from various internet paranoids. Go to Linn's Web site and read their pertinent announcements.
I had thought I'd already read on message boards practically every inane thing that could be said about IRS policy. But to read here that you should toss and ignore your Linn Energy K-1 raises the bar for whackiness. If there's a putative error that you can prove via verifiable data evidence (and you'll need considerable expertise to do this), you need (late though it is) to immediately call your broker to make your case with the dept. that handles K-1s. You can't go to Linn directly because they sub-contract the arcane K-1 figuring anyway. Also there's a K-1 center at 1-800-203-5179. Try calling to learn how to specifically register your complaint about erroneous K-1 information (and it can't be the simplistic nonsense from some posts on this board). If you're right (unlikely) you'll be issued a corrected K-1. Meanwhile, the IRS has already attached to your 2015 tax records the K-1 that's been submitted to them. And for those who believe that your waste basket provides a solution, why not just toss your 1099s into it also. It's a neat way to make new friends with IRS personnel a year or two from now.
Boy, are you ever in error, MMC. The COD was finalized on 11/2/15. The IRS has a copy of the K-1 with each individual's tax record. And "collateral" makes no sense in the context of a bond buyback at one half of par, the discount being the taxable cancellation of debt portion. (And you received a couple of green thumbs for the post. Yikes!)