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Re: beachboy3 post# 475

Friday, 06/19/2015 8:59:31 AM

Friday, June 19, 2015 8:59:31 AM

Post# of 509
Values of assets

I think the reason why the assets are now much lower is that with the decline in the price of oil, that is all they can expect to get for them in any sale. Part of the problem is that all of the land will not make the same profit with oil at $60, than when it was at $90. It is also possible that with oil at $60 some of the land is not profitable to drill.

I think most of the bond holder hope that if they hold on for a year or two that oil prices will go back to $90 to $100, and then the might recover most of their money.

One of the problems is that the longer oil prices stay low and the longer the bankruptcy goes on, the more that will have to be sold off for cash to keep operating; and the less the bonds will end up with.


Louis J. Desy Jr.

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