short term: 92 cents....That is where the share price was a few short months ago before a coordinated short bashing here and on SA knocked the shares down on spreading rumors of their complete demise; Now that they've been proven wrong we should get to 0.9 pretty soon.
Intermediate term: 3.50...That is where the share price was just before this last time when the oil prices slumped for a second time crashing through some major supports which eventually took it below 40 and then 30. It should hit 3.50 once oil prices start advancing based on a workable agreement on cuts be main oil producers.
Long term: 15....This price will only happen once oil prices stabilize around 60 or higher.
Translation: Bondholders gave up $639 million for 35% of the equity
Meaning: shareholder's 65% is nearly twice the 35% and hence its value (in long term) twice the $635 million.
with cap currently at a fraction of that amount the share price needs to get upto $15 a share to match above math.
You are our heros; I am glad I was on your side when and believed in you;
Now many here need to come out and apologize tou the management for their insults, threats, and pure bs.
The doubling of salaries was totally uncalled for and is unacceptable and the excuse of retaining employees is absolutely ridiculous because the bulk of the fund used went to themselves (I suppose they needed to retain themselves!!!) ...
But that in of itself is not sufficient to doubt this management sincerity when they say they striving with best interest of shareholders in mind; I still don't have a reason not to believe the management in this regard.
I was as disturbed as you when the management double their salary for this year despite knowing how financially distressed the company was; you would think they would take a pay cut to help out not double their pay over night for no apparent good reason (but realise if they file bk that pay raise will not stand and no bk judge will allow that).
In addition I also have to agree with you that so far there has not been a single step taken by this management solely to help the shareholders but then again I believe they've done what is been to their best judgement to help the company stay afloat (not mentioning the mistakes they've made);
Having said that I also have NOT SEEN a SINGLE INSTANT when the management, be it Stilley or Ahlstrom, has outright lied (if you don't agree please give me an example); The management is now mentioned several times in PRs, in CCs, and in public presentations that they are not going to leave shareholders high and dry and holding the bag and I have no reason not to believe those statements which correspond to what Lee has been saying to shareholders on the phone including myself.
Furthermore, and hopefully I am right, from the latest PR I get the feeling that the management is telling us that not only they are making positive progress with lenders but that they think there is a good chance of a final agreement within the next 30 days (hence deciding to postpone interest payment and take advantage of the 30 days grace period they have).
I fully and completely understand the frustration of shareholders who are over $1.5 Billion in the hole right now. I also agree with lawsuits not only against Paragon but also against Noble should the management goes back on above promises and their fiduciary responsibility and leave us holding the bag (I have to admit I do believe this management when they say shareholders will be part of any final settlement).
But what I don't agree with is this constant insults, threats of bodily harm, jail,etc et
HOUSTON, Jan. 15, 2016 /PRNewswire/ -- Paragon Offshore plc ("Paragon") (OTC: PGNPF) today announced that it has elected to defer an interest payment of approximately $15.4 million due today on its 6.75% senior unsecured notes maturing July 2022 (the "2022 Notes"). Under the terms of the indenture governing the 2022 Notes, the company has a 30-day grace period after the interest payment date before an event of default occurs. Paragon believes it is in the best interests of all stakeholders, including equity holders, to use the grace period to continue to engage in discussions with its secured and unsecured debtholders related to alternatives to improve Paragon's long-term capital structure.
Randall D. Stilley, President and Chief Executive Officer of Paragon, said, "Paragon has made the strategic choice to defer this interest payment as CONSTRUCTIVE DIALOGUE with debtholders continues. We believe WE ARE MAKING PROGRESS in achieving our objective to improve the long-term capital structure of the company. Paragon's substantial cash position at December 31, 2015, more than $750 million, provides us with flexibility as we negotiate. Furthermore, it allows us to continue to meet all of our obligations to suppliers, employees, and others as we deliver safe, reliable, and effective operations to our customers in the normal course of business."
1-Management continues to have the"BEST INTEREST OF EQUITY HOLDERS" in mind which is something they've stressed over and over;
2-'CONSTRUCTIVE DIALOGUE with bondholders is MAKING PROGRESS"
I know many have attacked me in the past for saying anything positive about the management; Here I am only quoting and not expressing my opinion or saying anything positive or negative so you can be the judge.I am only quoting.
Wasn't it just last week that Stilley said he will not leave shareholders in dust and that they are on top of his list and will be looking out for them!!!
And what about their IR guy, Lee, that over the months had assured shareholders that called him, including myself, over and over to be patient that we be fine;
Where is their shame in all of this.
I suppose they have one last leg to stand on, that of result of their negotiation with the lenders, to see just may be they will vindicate themselves; if not definite chance of lawsuit as attorneys still want to see their last move first to take up contingency against everyone involved but specially Noble and this management.
To the longs: I am sorry for believing this messed up management and trying to support them (I was wrong but it was all out of simple believing them and good will).
BK the very last resort accoeding to CEO and not likely; I would think we should hear something soon but it may be taking longer that anyone thought. Fun Trading, one of the SA contributors, had mentioned in an article last month that he was told by the management that some kind of news will be out in December; of course we are half way into December but no news yet; To me this is an indication that tough negotiation for out of court agreement continues which is good in that it shows lenders continue to be interested in this option but it also is a definite sign of lenders and management both running a tough bargain.
Again, only time will tell but I still very hopeful despite much pesimism on this board about this management's performance and their intentions with to a great extend is ver much understadable given not just how PGN is sunk but also how the management agreed to Noble loading this company with their problematic fleets and walked away causing shareholders a whopping $1.5 BILLION in losses; Yet the way I look at it short of a lawsuit trusting this very same management and keeping our fingers crossed is the best hope we have to at least recoup a fraction of our losses.
The stock holding for now; Management may be able to negotiate a very nice debt reduction agreement with bond holders and other debt holders as their timing in terms of negotiation has been almost perfect with oil prices hitting the very lows since the decline began; This should give a big leverage to management in terms of negotiations...But then again we all have to wait and see...
I am ver optimestic specially in the light of CEO making it clear a few days ago that they are looking out for sharholders and that they will not be left in dust.
Paragon Offshore in Talks With Bondholders to Cut Debt
Options include debt swap, ownership stake in company or cash payment to cut $2.6 billion in debt
By MATT JARZEMSKY
Updated Dec. 4, 2015 5:14 p.m. ET
Offshore drilling rig operator Paragon Offshore PLC is in talks with its bondholders aimed at reaching a deal to reduce its $2.6 billion debt load, according to people familiar with the matter.
The Houston company recently started confidential discussions with bondholders including AllianceBernstein Holding LP and Loomis Sayles & Co., the people said. The debt restructuring could involve a swap of bonds for new debt, an ownership...
Sentiment: Strong Buy
Today with 4 hours into trading volume extremely anemic also at just over 300k while stock is down so fsr.. Friday's volume was more than DOUBLE average daily while shares were up over 22%; Yesterday's volume was less than HALF average daily while stock was down about 5%.
From a technical point of view this would be considered a major positive signal if not for today's volitile energy sector...
Rumors have it that they may have news out sometimes in December (according to Fun-Trading guy at SA who had spoken to someone in the management).
Sentiment: Strong Buy