And back in the real world of day to day company operations, I can kiss goodbye to a former well (pun) established GoM driller that was growing, profitable and paying a dividend. May they rest in peace along with my (small) capital investment.
Energy XXI (EXXI) has voluntarily filed for Ch 11. They have put forth a Restructuring Support Agreement (RSA ...who needs a drink) to the court
"....The RSA eliminates substantially all of the Company's prepetition funded indebtedness other than its first lien credit facility.
The RSA contemplates that secured second lien noteholders will receive 100% of the new stock in the reorganized company, subject to dilution from a management incentive plan which is also contemplated by the agreement..."
Supersenior (IRS, Payroll) paid first, then 1st lien senior secured (i.e. Bank), then 2nd lien secured noteholders and then left with nothing are the unsecured noteholders, preferred equity holders and last but not least come the common equity holders (long term holders who invested and short term traders who got caught).
Company's current CEO remains and will participate in the equity incentive plan which is proposed to be 8% of the new restructured company. His genius plan didn't work out and the "lower for longer" oil price killed the company. Wasn't his fault though. He hedged, worked JVs, tried everything he could. An oilman through and through. Blah Blah (cue the sarcasm card).
Not all E&P companies are going to make it. Fact.
One less to be concerned with. My bad for keeping it. Was great in $80 oil days
An opportunity to share some schadenfreude. Linn Energy shouldn't be too long now either. Are there many (any?) coal companies left now.... Peabody also filed Ch 11.
GFTA
SSN Price at posting:
0.6¢ Sentiment: None Disclosure: Held
