Art Penn is a master of reclassification. PNNT now owns equity positions rather than loans in several upstream defaulted former loans.
Pnnt is worth @@7.50 now. If oil recovers the 2 large defaulted loans (now equity) could add a other $1 or more. Penn has experience in managing assets and working with defaulted borrowers
Listen to last quarter's conference call. 2 large upstream oil companies defaulted. PNNT now owns one, and is part owner of the larger one.Both are negative cash flows. I m pissed since Penn promised not to put more than 10% of PNNT funds into one sector and he jumped into upstream oil companies with over 20% of his fund, and has not written off the losses, but is playing around with PICs etc.
Penn has been dishonest about the upstream energy loans all along.
Unfortunately I am long. They now own a money losing upstream driller which defaulted on their debt.