Looking at their recent tax statement, it appears a good portion of last year's dividends were return of capital.
Should I be worried?
Evans sent a message to the bankruptcy court judge.
Your Honor : Please be advised that your opinions and judgments in this matter will be of no relevance. I will be making all the decisions here. You are just some worthless judge while I am the CEO.
Let's see how well that goes over.
I own some of the preferred C. I received this bulletin in the mail, apparently from the bankruptcy court. It contains lots of legal phrases but doesn't seem to say much. Anyone else get one of these? Any clue as to what it means?
Send a message to the judge and tell him he must do everything Gary tells him to.
No, I don't think so.
One possible outcome is that preferred ( and common ) shareholders will be offered shares in the reorganized company. How much will those shares be worth? That depends on whether gas prices rise to normal levels
Another thing to keep in mind is that common shareholders own the company. Complete control is what owners of a private company give up when they accept the money obtained from going public.
Everything hinges on the judge's willingness to snap his fingers and declare that the shareholders don't exist. I doubt if that's going to happen with a company with net positive assets.
What happens to the preferred shareholders will be determined by the judge. Of course the company ( any company ) wants to give them nothing, hopes to give them nothing, plans to give them nothing, prays to give them nothing. But they do not get to make that decision.
There will be chapter 11, we just don't know the terms. The company goes in with the terms they want, and the judge makes the final decisions. I do know that every interested party has a right to be heard in court. I am not sure who is representing shareholders.