Cramer's whole point when he first mentioned NVGS was that it was being hit because of an incorrect association with oil which then brought on the discussion on this board whether that point was valid or not.
mdb is saying that PWE is in Breach, "Well welcome to reality now that they are in breach of all their covenants." and Ohio is saying "by Sept 2015 in order to avoid the breaches", so mdb and ohio which is it?
Remember this is Carl Icahn talking, wouldn't surprise me if he was loading up on the oil stocks at the same time he was talking them down. Follow what he does not what he says.
Including FXCM, 226 million is just about equal to shareholders equity at the end of 2013. This stock is most likely on it's way to zero.
The last I computed the senior bond holders were getting 18 cents on the dollar with out exercising any second lien rights, based on the current price of the bonds I would guess they are getting even less now, common doesn't get anything until the seniors are made whole so It is safe to guess they are getting zero. There is a majority group of Senior Bond holders who have positioned themselves nicely to try and take the whole company, I'm guessing over 90% of it anyway based upon info provided by the above poster even to the detriment of the remainder of the senior bond holders. The best scenario for the minority senior bond holders and a long shot for the common might be for the company's assets to be outright sold. I have learned with the few times I have played with BK companies that you position your self with the guys with the money, in this case it looks like it is lining yourself up for the second lien convertibles and dumping in more money if you can. I bought into the Senior Bonds after they declared BK and still it appears I am about to get bit in the assets.
If anyone knows more about the bond situation or can correct any misunderstandings I may have I would certainly appreciate the input. Thanks!
You are right if they come out of Bankruptcy "the stock won't be .08 for much longer", it will be $0.00. Then again they may still be trading the old GM shares, so who knows. I have senior bonds which would have to be paid off first before the stock holders get anything and I am not sure that I am going to get any money back out. You want a 20 banger and you think the common is going to get something then you should be buying the bonds, the last I checked they were 5 cents on the dollar,
I have the Senior Bonds and I don't feel lucky, last I looked they were 5 cents on the dollar and my understanding is I will have to add money on top of my losses so as not to get bent over on the restructuring. Seems like there is a group of investors who have the majority of the Senior Bonds who have positioned themselves quite nicely to take the company. If you have anything left in the common you would be better off taking what you can.
rongstag, I do have a lot to learn but certainly not as much as you do, senior debt is positioned at the front of the line for a reason and that is they want their money back first and if it means the equity holders get bent over in the process they will show no concern. There are scavengers out there that purposely look for discounted senior debt just so they can get the equity, I have personally done it a few times. I'm still learning.
If I were a bond holder in PWE and they defaulted on the bonds why would I want to risk my capital by excepting shares in their place when I could just take my money back in assets and let the share holders hope for some scraps. If the note holders were to work something out they certainly would not do something that would put them at a level equal to the equity holders, that would be just plain stupid. Try again.
“The covenants in the credit facility have been aligned with the covenants in the Company's senior notes. The main covenant in the senior notes is the senior debt to EBITDA threshold of 3:1. The other significant covenant is a senior debt to book capitalization limit of 50 percent, which is not impacted by the market capitalization of the Company. As at September 30, 2014 these covenants were at 2.0 times and 23 percent respectively.”
Trying to get my head around these numbers, their efforts must now be focused on staying inside of these covenants with the significant drop in the price of crude. The ratios looked OK at the end of September but I am assuming things have really tightened up. So the market through its current valuation is questioning PWE’s ability to meet the covenants under current conditions?
iitriumvirate, I find it interesting that you left out GW and the overthrow of Sadam Hussein, a main contributor to todays destabilized Middle East. Papa Bush advised Baby Bush best leave that bee hive alone son, Baby Bush decided to listen to Rumsfeld and Cheney instead. Some times it's better the devil you know.
Gartman was talking down oil on the 16th so he was short, and was talking up oil on the 19th so he had gone long.
"Humm, let me think", 1/2 second pause, "The diamond you idiot, oh and you might want to call for take out cause I'm busy tonight." Most of them have been dreaming their whole lives about the ring, they know exactly what they think it should look like and I will guarantee you their dreams did not include a CZ and a check. I'm guessing your single.
I can see it now, " OH my god it's gorgeous whuncensored, yes, yes I will marry you" his love of his life says. "I'm glad you love it, it's a Cubic Ziconia, very practical and a far better choice than an unimpressive costly little diamond." " A what???!!!" she responds as she drops it in his glass of Ripple and walks out.
Whoever the Saudi's are trying to punish I have the sense that there has not yet been enough pain to suit them, Russia has no plans to pull out of Ukraine, no country has defaulted nor fracking company declare BK. More pain to come, I unfortunately still have one long position left in oil but threw in the towel figuring the worse it could do at this point is go to 0. Hope to go long RSX once everyone has finished puking it up.
mrcapital, it is just as likely we are watching a ball (oil) that was dropped down a set of steps, it bounces on it's way to the bottom. Don't get me wrong I am long and probably took as bad a hit as most here. I agree with bondo that the Saudi's targeted fracking and Russia, the other is getting the rest of OPEC to understand that they need to honor their quotas tohave the power to remain relevant.