Again, it comes down to equity equivalent of new Sandridge Commons. Same as with Atlas Resources. Why is it the proposal of the reorganized company does not list intended Commons' share price = reorganized company equity? Why? Damn straight they already know what they want. Same situation as with AR.
Good article you posted on SR.
Current pre-BK Sandridge upside is current Preferreds and Commons may get a piece of reorganized company. This will eat into first lien, secured and unsecured equity upon conversion. But then also, if Reserves are in fact much greater as SEC is interested in establishing as per the whistleblower, then more equity for everyone.
So, one can aquire the unsecured bonds now, but currently for the peasants it's guess work on after conversion. CM, your play is longer term with presumption of future increased oil prices. Might not happen. Sandrdg and Atlas may know this too and are just extending their ride before another BK filing in several years. Seems if we don't go alternate energies and infrustructure we're dealing with significant and costly remediation.
Would you not feel more comfortable knowing what your bonds will, or are projected,mto convert to in new Sandridge equity?
Where is your comfort level, solely on anticipation/speculation of stronger oil prices in months and years ahead?
Curious too, your Breitburn gain was a double in bond prices when you sold?
Think SRdg bonds may do likewise? I'd like to understand what those in the know, know. Atlas Resources bonds were priced right above bond trading value at time of conversion. You bet those in the know knew this. Seems likewise why Breitburn bonds doubled so fast. I'm not getting the value calculations others must be understanding, to know what bond trading prices are, become, should be, etc.
Sandridge bonds... are they priced as per expected equity conversion now, or should their value be significantly higher? I think you get my quandry of inquiry. I want a bond buy-in with a little greater road map, and this map does not seem to be calculable per current supplied information. Is it just speculation on future oil prices? Seems others understand more, and of info we do not have.
