before delisting and the forced sale by many holders? $.30
when they announced LOI and talked about sale of pipeline? +$1.00
So if they dont go BK, there's your upside
Dallas Salazar, a Magnum Hunter investor who has publicly challenged the board to take dramatic action to keep the company viable, said last week that the company has the means to avert a Chapter 11 filing, even if it doesn’t have the will.
“I still don’t believe that will be the ultimate outcome because I don’t think they have a credible bankruptcy case without at least one more attempt at liquidity,” Salazar told Natural Gas Week.
That could range from selling its 47% stake in the Eureka Hunter gathering system – which analysts say could garner more than $500 million – to divesting some of its non-core acreage to persuading lenders to extend repayment deadlines.
“They have options. They can’t just go into a bankruptcy judge and say, ‘That’s it, we have done all we can,” he maintained.
Salazar, who said he owns less than 5% of Magnum Hunter shares through his company Atlas Consulting, has called for the ouster of Chief Executive Gary Evans and a majority of the board, whom he blames for allowing the company to fall into dire straits. While similar producers in the Utica and Marcellus Shales have found ways to navigate the bearish commodity market, Magnum Hunter’s collapse is “mindboggling,” he said.
assuming that the bond holders will sell the assets and the judge would allow it "for a song". Their assets are producing income and the minority ownership in the pipeline are valuable assets. Its not like their liquidating store leases, machinery or obsolete widgets.
MSI could have shut MHR down and forced BK if they wanted to then go after the rest of the pipeline assets on the cheap. Instead, they just asked for $5 mil now and the rest later. Dont think they would have done the agreement if there wasnt something bigger happening that gave them confidence that MHR would be around or someone else would soon own the asset which would continue to be a customer.
MHR 8K out wells back in operation so they were closed for a few days......
In accordance with the Demand Letter, on November 10, 2015, EHP suspended gas gathering services under the Gathering Agreement requiring Triad to temporarily shut-in approximately 40 of Triad's operated wells located in West Virginia (the "Shut-in Wells"). The Shut-in Wells were producing approximately 66,000 Mcfe/d of natural gas production (approximately 55,000 Mcfe/d net to Triad). Upon execution and delivery of the November 2015 Letter Agreement (as defined and described below), on November 19, 2015, EHP lifted the suspension of gas gathering services under the Gathering Agreement, and EHP and Triad collectively began the process of returning all of the Shut-in Wells back to production. Triad anticipates having all of the Shut-in Wells returned to production and flowing to sales on or before November 21, 2015.
Triad agreed to pay all amounts then currently owed by Triad to or billed to Triad by EHP (after giving effect to the application of the Payments) under and in accordance with the Gathering Agreement upon the occurrence of (a) any comprehensive recapitalization or restructuring of the Company's secured and unsecured indebtedness and/or any transaction or series of related transactions involving any business combination pursuant to which a majority of the Company's equity or core assets are sold, other than under the circumstances described in clause (b) below; or (b) in the event of the commencement of a case under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code"), the date that is no later than 30 days after such filing (the "Petition Date"), to the extent approved by the bankruptcy court (each, a "Liquidity Event");
if its good news he'll put out press release, if its bad news he wont say anything and wait till evening hours to put out 8K, if that, or just continue to hide out at the brothel...
I dont think barging is an option right now with low volumes and excess capacity. They did mention no cap spending so I think that implies no barging in the near term.
I agree. Worried about MHR impact but so far no change and a small % of volumes. Hopefully their lender works with them so they can survive through this downturn.
Just dont know if Chevron's ramp offsets MHR's potential slowdown, but recent short raid prob reflects that in price, esp if they drive it down to .10 today.
so why are you still here if you dont own the stock? just proves your postings are just to drive the stock down since you're short.
dont believe that for a second. Very little action on this board then all of a sudden two postings come out to "warn" us. We all know about MHR exposure and GRH's business trends. If you're not long or short and wont buy at a $.01, you shouldnt even be bothering posting here.
even in BK, they'll keep wells pumping for cash flow. Since he owns 51% of GRH shares, those wells would prob be the last to shut down.
whoever takes over MHR assets will still need to have their services. Only neg would be if all the current wells GRH is providing services to shut in. Even in BK, they'll still want cash flow so wells will continue to flow as will GRH services.
he had his chance to sell the whole pipeline, pay down debt even issue equity to redeem the preferreds last year but he was too greedy and didnt think the market was smarter than him when everyone told him to reduce his leverage. AXAS did that after an activist got involved so they'll survive. Too arrogant.