ATP Oil & Gas Pref Shares fka ATPGQ

[56Chevy]

hey romang..good to see you.

Think of Equity Committees in general like you would Halloween..they can be either a trick or treat for equityholders. They don't always produce what shareholders think they will or hope they will. Its a mixed bag.

I do like that equity has a seat at the table even though I'm not an equity holder in this case. And it does bode well that the Trustee felt ATPG met the "solvency" test enough that he/she felt one should be appointed ...so with that in mind I'd say its more positive than it is negative.

Have my views changed now that there is an EC? Maybe only slightly. Why? Because I think ATPG has something you don't normally see in a BK and that being a potential huge earnings boost via something like the Clipper Wells Project. It has the potential to be a complete game changer and I think that may have been the deciding factor as to why the Trustee decided to appoint one.

The equity holders fate rests on the outcome of Clipper Wells and since we don't know yet how that's going to turn out ..you'd have to go with the law of averages and those say that equity is usually always toast.

Clipper Wells would change every class' "story"..and for that I'd say it has more impact on this case than the EC ever will.

Senior Secured 2nd Lien Bonds are selling for 14 cents on the dollar today (11/23/2012) ...and that tells you alot about the survival odds for classes below. If you see those start to go up dramatically in price (.75 ~ .90) then the Preferred shares story becomes alot more interesting. Until then..no.