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Just popping in to give a big FCK you to Grizzly Energy LLC.
SilverBack, nice call on the PHIL 0.0001 - 6 months before it happened - are you still keeping tabs? What is your take now?
I can understand the anger and the anguish over situations like this.
As a shareholder in any company I must respect the rights of my creditors to claim what is legally theirs when the debtor (which is technically speaking not just management but all the shareholders too) cannot pay their debts.
Vanguard was mismanaged not once but twice and in a very short period of time. Unforgivable..yes I agree but leading up to that bk there were huge red flags surrounding VNR and they've been there for the past 18 months. The stock went from $20 @ share down to mere pennies in less than 2 years. That alone should tell someone VNR was steaming full speed into another bankruptcy.
Keep analyzing this and it will help if you ever get into another bk stock situation down the road. BK's can rip you a new one if you don't know, or are a bit unsure, of the rules of the game.
Equity holders rarely ever "win" at this.
Oh well that makes perfect sense why the filed for a second time. what a great way to get funding from public security offerings and then just file BK and say F-u to the share holders. How that isn't illegal is amazing.
No. They exited bankruptcy as a private company.
so are they even a publicly traded company anymore?
HOUSTON, July 16, 2019 /PRNewswire/ -- Vanguard Natural Resources, Inc. announces that it successfully completed its financial restructuring and emerged from Chapter 11 as a new limited liability company under the name of Grizzly Energy, LLC.
VNRRQ BK PLAN effective. All shares cancelled.
https://otce.finra.org/otce/dailyList?viewType=Deletions
What's the address or contact number
Well there you have it! VNRRQ throws up the middle finger to all its current shareholders! Think we should all send packages of dog shit to their corporate officers!
new 8k out a/h
Pursuant to the Plan, each of the Company’s equity securities outstanding immediately before the Effective Date (including any options and warrants to purchase such securities) will be canceled and of no further force or effect after the Effective Date. As of May 10, 2019, the Company’s outstanding equity securities included 20,124,080 common shares and three and a half year warrants which are exercisable to purchase 1,262,525 common shares. Under the Plan, the Debtors’ new organizational documents will become effective on the Effective Date. The reorganized parent’s new organizational documents will authorize the company to issue new equity, certain of which will be issued to holders of allowed claims pursuant to the Plan on the Effective Date.
No clue just thought it was interesting.
I'm doing the same. Down so so much here there is no harm of holding to see what happens. Worst case it will be a write off.
I can't help but feel like no news is good news. Trying to stay optimistic. What else can you do really? Here's to hoping our patience pays off or breaks us even.
What would the reason for someone to buy 3000 warrants at 300% higher than the rest of the bid? just seems odd to me.
Yeah it's worth it to just hold at this point to see what happens after this much of a loss. Definitely got caught in the pump, seemed promising with all the DD being done, definitely did not expect the second BK
My average is a lot higher than that so I will hang on and take a tax right-off in the end of the year But theirs always hope.
maybe we get a run to .20
Unless it gets back up to my .20 average I don't have a hope
Hey Salty it's been a while...hope all is well.
These O & G bankruptcies (numbering in the hundreds now) have taken a toll on a ton of shareholders the past 3 and a half years ...and not a stinkin' one of them worked out well for the longs. You always get some day traders working the crowd in these bankruptcies early on but that fades when they know new money isn't taking the bait anymore and they sell. Its legal but a dirty way to make a buck imo.
Glad you stopped by to say hello Salty. God bless and take care!
Roger that, SM.
Trueheart
I also think his treatment of VNRRQ has been spot on!
I've been reading 56Chevy's posts since 2012 and each one has always been a solid piece of DD regardless as to what stock he was posting about.
Hell, I've still got 15000 shares and hoping for a miracle!
Hey its either that and have a sliver of hope or just give up completely!
Seems like we are the last ones standing LOL
I sure hope so, still dragging this massive bag around! lol
Maybe somebody knows something. Seems to be a boost in volume today.
Still undecided at the moment I believe.
Does anyone have any idea if we are keeping our shares here or are we done for?
Anybody else watching the warrant price vnrwq? Up 45% today
I appreciate the encouragement Trueheart..I had a good mentor.
56 Chevy, I have read your comments on this board for some time and must say that I am impressed by your breadth of knowledge, logic, consideration and the completeness of your posts.
Trueheart
In this particular bankruptcy I completely understand your position.
The dilemma Judge's face in granting bonus/incentives is a difficult one. Typically it has less to do with deciding if its right or wrong judges have to think about the thousands of employees that would lose their jobs if the company came to a complete melt-down due to some of the top execs leaving. If all the top management people jumped ship when a company files for bankruptcy the already distressed company would most likely grind to a halt...especially on the operations side of the business. Somebody has to keep drilling & pumping oil every day in order to keep the business going until better days come. Sometimes these bankruptcies take years to get through.
I don't want to see 8 or 10 thousand employees lose their jobs and neither do the judges who have to decide these matters.
Its a tough call in some cases. Is this one of those cases? I don't know but in light of this being their 2nd bk in less 2 years I would say the incentive pay was complete bs.
I hear what your saying but here and in any company, NO one should be making million plus bonuses or even salaries within months of filing for BK.
Post #4493 addressed "bonus" pay/incentives in regard to new legislation.
The problem is there are times incentives to stay with the bankrupt company are legit and when it's bs..especially when it involves key operations execs.
Bonus payouts can be easily abused and deciding if its' legit is tricky business. There is no way a bankruptcy judge can know if the reasons given to grant incentive payments are in the best interest of the company trying to successfully emerge from bankruptcy.
People that received incentive pay may be in the top levels of management but that doesn't mean they had anything to do with the financial decisions that lead to a bankruptcy. I'm not saying this is the case here but bad things do happen to good managers. Making hard and fast rules regarding incentive pay in a bankruptcy is a double edge sword.
I understand there is now legislation for this exact circumstance that will be taken to the house floor in the near future.
Now wether congress will actually get off their ass and do their job is a whole another issue (don’t get me started)!
What are they saying the "opt out" form is for? Is it some type of third-party non-debtor release?? Just curious.
Yes. I received one via TDAmeritrade.
Did anyone else here get an "opt out" form from WISE SECURITIES INC?
not sure why, purchased some at 6 today
Now you sound like me.
I'm not defending VNR management on any level. I can understand their first filing in 2017. Anyone who follows worldwide O & G knows what caused the first filing but filing again less than 2 years later is not acceptable. Heads needed to roll..and maybe some did or soon will.
Marker:
Vanguard Natural Res (VNRRQ)
0.011 down -0.0027 (-19.71%)
Volume: 21,565
Executive bonuses or retention pay with target incentives involving companies in (or about to enter) bankruptcy is quite common.
You may not have a subscription to the Wall Street Journal which would allow you to read the entire article I'm posting here but you can at least view an opening statement the WSJ did on this subject re: executive bonuses and or retention pay involving companies in a bankruptcy. Immediately after the first paragraph you will see a 4 minute video you can click on. Give it a listen.
https://www.wsj.com/articles/SB10001424053111903703604576584480750545602
As a side note Congress did pass a bill HR 6912
More Information
In-Depth: Rep. John Duncan (R-TN) introduced this bill to prevent companies in Chapter 11 bankruptcy from paying bonuses to highly compensated employees, such as executives, and insiders.
In recent years, corporations have come under fire for paying bonuses out to executives while going through Chapter 11 bankruptcy. Hostess Brands, Sports Authority, Toys 'R' Us, Radio Shack, iHeartMedia, and Borders are among the companies that have been criticized for paying their executives sizable bonuses even as their employees lose their jobs. Writing about Toys ‘R’ Us CEO David Brandon’s $2.8 million retention bonus just before his company’s Chapter 11 filing, Axios’ Dan Primack commented on the inequality between Brandon’s bonus and those of the company’s employees:
“Brandon could receive nearly $15 million that is related to a bankruptcy that it was his job to prevent from happening in the first place. Other senior execs could get over $1 million a piece. The other 3,805 employees get to share from what would be a $60 million pot, per court approval, which works out to less than $16,000 per head. Guess which group will be manning cash registers at 5pm on Thanksgiving Day, and which will be home with their families?”
Defending its executive bonuses during Chapter 11 proceedings, Hostess argued that its “prime goal now is to maximize the value of the company as it goes through liquidation,” and argued that executives’ bonuses, which were linked to their achievement of certain benchmarks for rapid disposal of the company’s assets, were needed to incentivize speedy, effective work. The company argued that the rapid disposal of Hostess’ assets was “ultimately to the benefit of all the people and the organizations to whom Hostess owes money,” including employees.
Richard Levin, a partner at the law firm Cravath, Swaine, and Moore, adds that companies in bankruptcy "need to attract the best people and compensate them for the tough work they have to perform," and finding a replacement can be expensive. For executives, the work is especially tough, as they work two difficult jobs: running the troubled business and attending to all the legal and procedural headaches associated with Chapter 11 court proceedings.
Some research also suggests that key employee retention plan (KERP) bonuses paid out to senior employees of companies in bankruptcy restructuring improve companies’ outcomes coming out of bankruptcy. In a study of 417 public companies that filed for bankruptcy from 1996-2007, Queens School of Business professor Wei Wang and Hong Kong University of Science and Technology’s Vidhan Goyal found that firms with KERPs in place moved through restructuring faster and were more likely to be successful after emerging from Chapter 11. Additionally, they found that 78% of incentive bonuses were paid out contingent on bankruptcy resolution, and almost half allowed for bonuses contingent upon the firm’s emergence from Chapter 11 — in other words, they were closely tied to performance. Finally, they found that the total cost of these plans was quite low in the grand scheme of things. Wang pointed out:
“One thing I found surprising was that the total cost devoted to these plans in the 417 companies studied was less than 1 percent of the firms’ pre-bankruptcy petition assets. So why are people so skeptical about these plans? If you think of legal fees, lawyers account for eight to 10 percent of assets, but people don’t argue about legal fees.”
However, in past Chapter 11 cases, the Justice Department’s US Trustee Program, a watchdog agency meant to protect the bankruptcy system’s integrity, has argued that many “incentive programs” like Hostess’ function as “disguised retention program[s],” which are “prohibited in bankruptcy cases absent extremely specific and unusual circumstances.”
Of Note: From 1993 to 2012, 38% of the top 500 most highly-paid CEOs headed poorly performing companies — and 22% of the top 500 CEOs’ firms either ceased to exist or received taxpayer bailouts after the 2008 financial crash.
There is a 2005 measure, fueled by popular outrage over money paid to Enron executives after that company’s implosion, that restricts “retention” bonuses that reward executives for sticking with distressed companies. However, it’s rarely enforced, and companies usually manage to justify executive pay.
Here is another good read involving the Toys-R-Us bankruptcy:
https://www.marketplace.org/2018/04/10/how-companies-toys-r-us-get-approval-pay-executive-bonuses-during-bankruptcy/
Great post, and exactly why I believe SEC should be involved with investigating their behavior, protecting us small investors from what may be dishonest manipulation.
Hope your doing well Chevy....
What angers me about this entire situation was the behavior of the executive team.
They drew down a portion of the credit facility to pay themselves bonuses prior to filing for bankruptcy. This should be a criminal case against these executives.
https://www.otcmarkets.com/filing/html?id=13131141&guid=FC53UnwS_ftC93h
All while in their previous investor presentation they painted a much rosier picture of increased revenues, paying down debt, better debt ratios, and increased profits as hedges rolled off over the next year.
Meanwhile institutional investors were dumping massively 14 days prior to the bankruptcy filing, without filing any kind of Form 4’s to reflect changes in their ownership. Insider knowledge that no one will be punished for.
This good ole boy club with executives and their sweetheart compensation packages for each other to only do this. I'm pissed at these criminals. That is essentially what they are, and they behaved no better than sleazy penny stock executives.
https://www.otcmarkets.com/filing/html?id=13173742&guid=FC53UnwS_ftC93h
I'm sorry, but ineffective management, do not warrant the salaries they command. You do not perform, you deserve no bonus.
They should have managed the business with the fiduciary duties that were intrusted in them.
$1.5 Billion in Assets
$1.2 Billion in Liabilities
$470 Million in Annual Revenues
$274 Million in Shareholder Equity.
This is what you should do as an executive of a company.
I hope this failure follows Sloan and Midget for the rest of their professional careers.
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