Nope they didn't. The best way is to go to their website and read the BK plan. Looks to me that first lien holders get paid in full, second lien gets 85% of the new stock. Unsecured bonds 15% of the new stock and common gets cancelled
Yea. I've done the VNR/EROC thingie and for the past couple of days I've dumped my ARP at 12 and change and half went into EROC at 16.75 and half into LGCY preferred. Kinda sucks because I've paid 17.5 or so for ARP but I try to rationalize it by telling myself that EROC were going for 20 not too long ago. I figure that ARP is more of a near term risk and to get out while I still get the interest back with the stock trading at 25 cents. Now the big thing is the May 26 re-determination and of course I'm really curious how the 6/1 interest payment will affect the price of the bonds.
Can't they hedge a bit more nat gas? I mean the Dec futures are over $3. Couldn't they maybe even just sell some $3.25 calls for 36 cents?
The hell with it. Sold all of 90 of them. Got 20.5 and 20.3 on the remaining. With the same money I picked up 100 EROC. Higher interest rate and if they make it, I get a 600% return instead of 500 for VNR. All in all a better deal....if they make it
Yea I rotated 60% of my vnr bonds that I sold at 21-21.5 into EROc that I bought at 17. Eroc pays a higher interest rate too and I ended up with more bonds also. Figure VNR won't default on the smaller eroc 6/1 interest payment. Wanted to rotate the other 40% but the bid dropped to 20.3 which still make sense but I figure I'll wait a bit
I guess the question would be whether the event happens before or after the re-determination. The interest payments are due 7/15 and 8/15. It would suck to hold and on 7/15 they decide to forgo the payment and take the 30 day to think about it
that being said I have to make the decision whether to 1) dump those bonds at 11-12 cents when I'm in at 17 and change. 2) wait for re-determination and gamble that they may drop even more. 3) go all the way and basically write this (fully loaded Hyunday) off and a few months after they restructure and I'm allocated some shares pretend that it's basically found money and be happy about it...hmmm
I have to wait for the transcript but I have to say that I listened to the call and based on prof comments it was like we listened to different calls. Maybe I missed something. To me it seemed very positive. Didn't hear where the revolver was cut. In fact I heard $750 mil a couple of times and said that they would have actually qualified for more. There was a long Q&A at the end and the tone was very positive
So far it sounds pretty positive. Credit line remained the same $750 mill. Working on other financing. 85% hedged through 2018. Plenty of liquidity. Didn't hear anything bad so far
Yea. Got a bunch of ARP bonds too, but I would rather that they wouldn't file. Had several go under (BTU, LINE, SD) and I did ok but those bonds I bought really cheap. For ARP I paid $.15-$.16 and I guess in the average BK that's expected to be the average recovery. My idea was to get 100 cents eventually and collect a fat interest payment. I don't want to go back to the drawing board. Any other bonds that you're looking at Cube?
Or work with the lenders and get some covenant relief?
But if there is...can you handle the tax liability? It's not whether you lose 15 cents, it's about how much you owe uncle Sam and that could be a few dollars per unit
Still have some Linn bonds. Not a lot and only paid 3.5 cents or so. Was thinking of going through the conversion process just for my education.Bad idea? Has anyone been through it?
Lol..I know. Will be visiting Kauai next mo but I'll be bringing 4 girls with me. Kauai is paradise but night life is lacking to say the least. I prefer BKK or Pattaya to Phuket. What island are you on?
Prof. Have you done any work on VNR? I don't really care if that one pops or not but I have some bonds and I care if I get paid back. Appreciate your opinion