I wouldn't be surprised if they booked some new business with oil near $50. Companies looking for cheap drilling options at this price would possibly navigate to Paragon. Just speculation
LINE files bankruptcy just as oil begins to rebalance and rebound. Seriously; does Ellis ever make ANY decisions that are in the interest of anyone other than himself? This guy really needs to be jailed at the least. Biggest con I have ever seen in 30 years in the market. I'm not kidding.
Drawing down the revolver.....it sickens me how these priks can get away with that; it's blatant outright fraud; called LOADING. If an individual tried to load up by maxing out their credit cards gearing get up for a bankruptcy they'd be tarred and feathered,,,,yet it's OK for companies??
I would hope they would for at least another year; even at such low prices. Why? Because it would pretty much ensure their ability to avoid a bankruptcy.
You're missing the point; the entire transaction that would have generated the CODI never materialized, and is in fact fraudulent. The K1 is bogus and based on a transaction that was not executed in good faith. The lawsuits will be the least of worries for Mark Ellis. The blowback will be unbelievable.
Management will reap millions.
The fraud perpetrated by these con artists should result in the death penalty. This is WORSE than Enron. My god.
Yup. No way in hell they'd file DURING the exchange....although this management team is so incompetent I wouldn't put anything past their ability to produce another colossal fumble.
For example, if LINN seeks protection under Chapter 11 of the U.S. Bankruptcy Code in May, some amount of CODI may arise upon the closing of the transactions contemplated in the Settlement Agreement (the timing of which is uncertain). However, a more substantial amount of CODI may also arise at the time a plan of reorganization is consummated. Therefore, LINN unitholders that exchange during the subsequent offering period will continue to avoid future allocations of CODI to the extent such CODI arises in calendar months following any settlement of LINN units made during the subsequent offering period.
Ellis has another 4 weeks of take the money and run!