suggest U Read the NEWS on LINN website, the exchange offer wording is gruesome for any Linn holders in 2016, read the other news releases too about how a sell counts on the first of the month. LNCO, no effect, now sure the effect upon those that exchanged into LNCO,.
The release says "the company", so LINE is H, probably $0.00 in after hours, LNCO also shows a" H". Would not all 3, LINN, BRY, and LNCO be Ch 11, and trading at zero, or not listed on thursday, ? I got out of LNCO, following along to see who lent the 2 Billion new debt, who gets the assets, heck there are assets, and there are hedges which are assets, but, etc etc. and why is the exchange offer being still open per the news release until May 23rd w court approval. CODI still looming, I have no LINN, never had any, as I took the LNCO bath.
Somebody will be a winner, just not any shareholders.
the size of the bids look small, e.g. 25000 sh across several market makers then the price ladder dips. But your logic is impeccable for anyone on this msg board. The only buyers of LINN should live in Freeport Bahamas, they can maybe trade for couple + pennies I guess. I wonder what the k1 issue was for shorts, who might need to now cover, can you cover at zero? I am unsure, just like your questions about trading LINN in this messed up sector.
UPL still halted. mpoy STILL has a positive bid, why?
UPL was mostly nat gas, LINN 56%. Bad precedent, but try to figure out the effect on LNCO if/when LINN files if bankers do not agree. Watch to see what UPL becomes, will they sell assets w/o debt to a new co? The bank will not be an E&P operator. Can watch UPL all May essentially to figures tout. Anyone not converting to LNCO has more tax 2016 issues, not me.
Why have only 55 mil shares been tendered, see news on Lnco site. What does Lnco do w their 128m sh of line? This whole mess is confusing, now April25 is deadline, so have to wait til May to see if survival will happen when more COD probably will occur. I sold Lnco, do not have any line issues w k1 as never bot any line, as I never wanted a
K1, after having one years ago w Kmp. I will rebuy Lnco after 30 days when 70% of debt is gone, if it exists. Bankers have to be thinking of how to screw shareholders to somehow recoup their b's of loan write offs.
I got a K-1 for this preferred for last year, will get another one this year. If April gets a bank loan extension like CKK got today, this rocks.
What will the effective date of the exchange be? April 18th? or today if you call your broker? From what I read it would have been nice to make the exchange retroactive to 12/31/2015, but then 2016 tax nightmare might be enjoyable to some.
download your trades into turbo tax, easy, includes the download of i and divi also. Your printer will need lots of paper though. So far I have no k1 for LNCO and I never bot LINE for the k1 nightmare. have it on another one though, but a little less than the divi amount, which next year will be reversed I suspect.
LNCO had accumulated deficit of $3.904 B at 12/31/2015 from the 10K I opened, so any income from COD that accrues to LNCO as a result of this swap deal of the 39% ownership of LINE shares might
be shielded from income tax by the huge accumulated deficit I think, so LNCO may not need a cash distribution infusion to pay income taxes unless the COD would exceed a big B amount, which I think is unlikely, a small COD B or two perhaps, but not $4B. At least this is my opinion. so I am holding LNCO, and obviously others are selling in fear of BK. I am sure a lot of the E & P patch is looking for guidance from whatever happens w LNCO's future. Noted another small cap went into Ch 11. Emerald Oil. Never heard of em. williston oil, and it was trading @$1.37 yesterday, zilch today I guess/ but bidders for the property are circling the carcass per news on yahoo. If LNCO survives, and gets bot out maybe of course partially for any unused accumulated deficit there might be some value there. Otherwise value goes to zilch unless a lot of debt is somehow made to disappear into a big hole/ plus the hedge book looks ok for another year for sure for income for somebody. Wish I knew something about reorganization accounting to better speculate. But in any event Apruil 15th will be here and speculation can end one way or the other, or maybe before that date? Will the secured creditors force a bk before then? mgmt gets the shaft then too I think for all of those giveaway options they were granted, of course then they get new options in new company to shaft ...us.
As of Dec. 31, 2015, Emerald estimated its assets were worth about $291 million, a figure that includes only $28 million in current assets, Mr. Smith wrote in an affidavit. Liabilities add up to about $337 million, including funded debt of about $260.5 million.
Line @ 60c for Lnco @ 49c, hmm. Now if line gets rid of B's of debt by leaving the debt, exchanging un-secured for secured, ... More news to come, before I can figure out if I survive or take a 100%. Loss, now since the only asset LNCO owns is 128M shares of LINE, this gets more convoluted. I never owned any LINE, so I do not think I am exposed to taxable debt forgiveness gains, as the debt is over there, not here. It appears Lnco survives, but with what value?
LNCO only owns 128M of LINN; about 36+%. so when you apply 36% times $273M value of LINN you get say 98m for LNCO vrs current mkt cap of say $67M at roughly todays price it indeed is puzzling why LNCO is cheaper, but then....., so since it appears LNCO will survive if the APA format is followed, and if you wait 10 years like APA did after their 1987 MLP inclusion into APA we get maybe even. Problem is of course nothing is gonna happen any time soon, 29 days or so probably, and the credit line package has to be extended on April fools day or ....
Would not there already be a 2015 tax hit from the debt refi last year, even though it was a 2 for 1 deal 2B bond?
IF not, Maybe this is not bk ch 11 to me. IF this works it will provide template for other MLP's
News for 'LINE' - (DJ Linn Energy Looks to Ease Tax Hit on Investors)
By Liz Hoffman, Matt Jarzemsky and Laura Saunders
For some energy investors, there are worse things than going to zero.
A wave of expected bankruptcy filings and debt restructurings could trigger taxes for investors at a number of energy firms, a doubly unpleasant outcome that has companies searching for a fix.
Linn Energy LLC, a Houston-based oil-and-gas producer, is exploring a change to its corporate structure that could shield investors from a tax hit triggered by a likely debt restructuring, according to people familiar with the matter. Distressed peers are watching closely, hoping Linn can provide a blueprint to follow as low oil prices continue to spread pain through their ranks.
The issue stems from the fact that Linn is taxed as a master limited partnership, or MLP, rather than a corporation, a popular arrangement among energy companies when oil prices were soaring.
In good times, that status allowed income to flow straight through to investors without the Internal Revenue Service taking a cut at the corporate level. Linn distributed some billions of dollars of cash to investors as U.S. energy production boomed.
But the collapse in oil and gas prices has exposed the structure's double-sided risk: Investors with potentially worthless shares--or units, as they are known--may nonetheless owe taxes on debt that is forgiven in a bankruptcy or an out-of-court restructuring.
That is because MLPs pay no corporate taxes and instead pass certain tax burdens, along with a share of their income, to investors. Debt forgiven in a restructuring counts as noncash income, or "cancellation of debt income," which creates a tax liability for investors without an associated cash distribution.
The roughly 60% plunge in oil prices since the summer of 2014 already has sent a number of energy companies into bankruptcy, and more are set to follow. Fitch Ratings expects the default rate for U.S. high-yield energy
From what I see about the bonds, March 11th interest payment due on a slug of the 3c on the dollar bonds. I do not quite understand how(but I could) you can buy $5000 of bonds for $383, but that is what my brokerage shows for the May 2019 unsecured bonds. Comments welcome since I have not ever bot a corporate bond, Hopefully LINN bot like 2-3B for that $500 million they still have from the last bond buyback deal... If the unsecured bonds get paid this Friday, the eps probably will be out too. But there is no dividend on the horizon for 2 years at least unless somehow oil rallies way way up.
The poster that claimed debt mounting has no clue. Their latest debt refinance deal last november 13th said they had $500m left to refinance from un secured to second lien secured. And I doubt that they would do this unless they pay tops 25c on the dollar. Gettiung rid of $2 Bill from the deck in exchange for .5Bil would certainly be another step in the rise back to $10.00 stock. We find out soon (I hope this week) what, if any, more of this restructuring action is occurring, and for sure something privately is being negotiated like last Nov.
last November refinanced $2 Bil for $1 Bil. 50c on the dollar for 2019-thru 2021 unsecured debt, and that was before the big oil price crisis, and is gonna be part of Q 4 earnings announcement which has to be imminent.
Debt is not mounting, it is being reduced, that was one of the purposes of the cash draw and the dividend/distribution elimination..
Fortunately I did buy low Feb 17th (took guts to even buy any on that day) to average my $$$ cost after looking at the hedge book for LINE. 100% nat gas for 2017 and 70% for oil, $4.90-5.00mcf average I guess and $90.00 oil from the Nov 5th earnings announcement, Even some mcf hedges into 2018, maybe 20%. When the 4th qtr report finally is filed, more about current cost will be known vrs the break even point (w/o the hedge benefit). But suspect cash flow will be significant primarily because of hedges, but the real deal is q2 2017 which is all speculation for another 6 months or so. The debt reduction on Nov 13th,2015 hopefully set the tone for further moves in say Jan 2016 when the unsecured holders had a panic attack. Now with no more distributions/dividends, cash flow could be $800K+ yr, and interest $560K, yr. but if more debt was bot back for deep discount this could be better. Only can find this info in an annual report, which is overdue. there is no maturity of debt until 2019 if I am reading the 2014annual report page 71 correctly. The only hurdle now is the April credit facility debt level, which must be in discussion to extend, not reduce based upon the current every day +60% up day in this penny stock which I hold as a dollar stock, only need say a quadruple from here to get even, and I will be holding all year, might do a tax sale of my low buy after 30 days under FIFO to lock in a loss., then wait another 30 days to re-buy. The loss is worth a lot more than a quadruple gain, so that is a plan I hope comes true ($10 would be a nice gain for me), heck why not, could happen..
If the banks start calling in loans on these 25 ++ small oil/gassers , that would precipitate a recession, as the banks then start writing off loans because bk co's have some if into lots of unsecured loans. The banks caused the Great Depression by callling in loans, I am hoping the US treasury, etc are counseling these banks to keep the loans active until supply/demand again rescues LINE, AND my LNCO. I am holding as I believe 2017 will be a good year for oil, and line hedges will get it to 2017. If line has been able to buy some debt for 10c on the dollar then that... Will also make me happy. Since I am in so deep, I cannot sell, will ride to BK, or ride to 10 banger in 2018.