I'm not sure that any of the bondholders are just going to forgo their interest payments. As a preferred stock holder, it sounds like you don't want to forgo your dividend payment. Getting all of the bondholders to agree to forgo their payments could be like trying to herd cats, not that easy. I hope that EXXI makes it, but I'm not sure I want to put good money down on it.
EXXI seems very risky right now, especially given the low oil prices. I'm not sure it's a good strategy to buy a stock, in hopes that the bondholders will do x, y, and z. It will be interesting to see how 2016 goes.
My understanding is that EXXI is prohibited by covenants from buying back most of its debt on the open market at discount prices. I think that the road ahead is very difficult for EXXI. I considered buying some preferred, but then decided not to, at least not now, after digging down a bit on the numbers. If oil spikes up in price, then maybe. Good luck.
With oil prices staying so low, I don't see how EXXI can re-finance any of its debt, which will cause default sooner or later. EXXI should have issued more stock when the stock price was high, but now it's too late. Most of the oil sector is toxic right now, except for the refiners, in my opinion. I like Valero (VLO) at this point. Does anyone have a credible path forward for EXXI, that deals with all of its debt problems?
EXXI's business model depended on oil staying high. They took on too much debt and then the price of oil crashed. I don't see how they are going to pay the interest and not breach the covenants. The senior secured bondholders will likely take control of EXXI, the new company, after bankruptcy. Everyone else will likely go to zero. If that is the case, it may be best to cut your losses and sell for what you can get. I currently have no position in EXXI, long or short.