So the end has arrived for Lonestar via a "Prepackaged Ch 11" filed with SEC last night.
"As set forth in the RSA, including in the term sheets attached thereto (the “Term Sheets”
, the parties to the RSA have agreed to the principal terms of a proposed financial restructuring (the “Transaction”
of the Company. The Transaction is contemplated to be implemented through a prepackaged chapter 11 plan of reorganization (the “Plan”
to be implemented through voluntary cases to be commenced by the Debtors under Chapter 11 of Title 11 of the United States Code (the “Cases”
. "
https://www.sec.gov/Archives/edgar/data/1661920/000119312520245548/d942788d8k.htm
Highlights???
(b) Noteholders: On the effective date of the Plan, each holder of an allowed Notes claim will receive itspro rata share of 96% of the New Equity Interests (subject to dilution by the MIP Equity and the New Warrants).
(d) Preferred Equity Interests: All existing Series A-1 PreferredStock (the “Preferred Stock”
of the Company shall be cancelled, and each holder of such Preferred Stock shall receive on account of such Preferred Stock, its pro rata share of 3% of the New Equity Interests (subject to dilution bythe MIP Equity and the New Warrants).
(e)
Common Equity Interests: All existing Class A Common Stock (the “Common Stock”
in theCompany
shall be cancelled, and each holder of the Common Stock shall receive on account of such Common Stock, its
pro rata share of 1% of the New Equity Interests (subject to dilution by the MIP Equity and the New Warrants).
I'd rather have 0% than be reminded,
But management have of course taken care of the concern that
Management Incentive Plan: On or before the 60th day following the Plan effective date or as soon asreasonably practicable thereafter, the reorganized Company shall enter into a management incentive plan (the “Management Incentive Plan”
, which shall (a) reserve 8% of the New Equity Interests (or restricted stock units, options, orother rights exercisable, exchangeable, or convertible into such New Equity Interests) on a fully diluted basis (the “MIP Equity”
Will that be the "pro forma" for Sundance?
But what I really want all to see (
@tt2000 what are your thoughts on this set of financials) is this
https://www.sec.gov/Archives/edgar/data/1661920/000119312520245548/d942788dex991.htm
That's what "minimal to flat production growth" looks like with curtailed spending in 2020 and moderate drilling activity beyond". FCF positive ... but not enough to settle debts due.
IMO one of the key numbers is PDP NPV1-10 at the Strip pricing with the Hedgebook = $299M
