Bye Bye Whiting Petroleum, former darling of the Bakken
"Whiting Petroleum Corporation (NYSE: WLL) and certain subsidiaries (collectively, “Whiting” or the “Company”) today announced that they had commenced voluntary Chapter 11 cases under the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Company has more than $585 million of cash on its balance sheet and will continue to operate its business in the normal course without material disruption to its vendors, partners or employees. Whiting currently expects to have sufficient liquidity to meet its financial obligations during the restructuring without the need for additional financing."
Voluntary Chapter 11 with $585M of cash (but at least $2.2B in outstanding notes ...). no details presently but the guess is that existing shareholders will see all common stock cancelled and will not have any ownership of restructured company.
In the words of WLL CEO "We are pleased to have secured a highly constructive restructuring framework with a critical mass of our noteholders." No mention of the (sucker) shareholders.
SEA Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
