That's exactly what I was suggesting. I also am not sure that LNCO holders couldn't just receive a 1099 that includes capital gains from the bond repurchases. Do any of us really understand all the tax rules/options for these shell stocks that just own MLP shares? And BTW, LNCO has traded higher than LINE, LINE higher than LNCO and they have traded close to 1 for 1 at different periods in time. We closed more than half the gap today. Explain that other than just plain supply and demand for each stock.
It's come close to this spread before and the gap always seems to close. If the taxes are such an issue as you suggest, why doesn't the company just pay out the LINE share to each LNCO share holder and do away with LNCO?
My guess is they will have to issue the LINE shares to the LNCO holders and LNCO will cease to exist (at least temporarily). All LINE holders will then get their portion of the gain on a schedule K1. Nothing else makes sense.
DEFINITION of 'Junior Debt'
Junior debt is debt that is either unsecured or has a lower priority than of another debt claim on the same asset or property. It is a debt that is lower in repayment priority than other debts in the event of the issuer's default. Junior debt is usually an unsecured form of debt, meaning there is no collateral behind the debt.
Been here many times. Some have not made it, but more often many have been 10 baggers. You don't have a crystal ball. I rode this whole sector down in 1998 and watched many loose 90%+ share price only to fully recover and then some. These aren't bank stocks. LNCO is a straight up bet that the price of oil will recover (and it doesn't need to go back to $100). November report doesn't matter, only the story going forward.
The past should have no influence over a future investment. This stock has lots of company in the same sector that has gone down just as much due to the crash in oil prices. As usual the market momentum destroys share prices when the follow the herd mentality takes over. That appears to be ending. An investment decision should only be based on where the stock price is headed and that appears to be up. When will you realize that you are on the wrong side of the trade (after it goes up 500%+). We are already up over 50% off the low.
Why don't you reassess your situation again when BTE quickly doubles.
From the announcement: "Potential future repurchases or cancellations of outstanding senior notes at a discount and/or asset sales could result in a tax liability for LINN’s unitholders". So doesn't this make LNCO and better investment than LINE in taxable accounts. I have to assume the company has to pay any taxes owed for LINE shares that are owned by LNCO.
From the press release: "Potential future repurchases or cancellations of outstanding senior notes at a discount and/or asset sales could result in a tax liability for LINN’s unitholders". So doesn't this mean LNCO is a better investment than LINN for taxable investment accounts? It's not clear who pays the taxes for the LINN shares that are owned by the LNCO shares (the company?). I don't see how it could be the LNCO shareholders (no schedule K1).
Such a true statement. SA wants to squeeze other defunct OPEC members just as much as US shale players (mainly Iran and Ven).
He probably had a contract in place and there was no way around it. Better to just pay now than to let lawyers suck more money out of the company.