ATP Oil & Gas Pref Shares fka ATPGQ

[56Chevy]

Hey ROCKHard, I hate to give buy or sell recommendations. I agree the legal stuff can get confusing. Let me ask you a question and I'll try to make it relatable to this situation.

What if you bought a house in 2002 for $350K and you borrowed the money from Wells Fargo Bank. They hold the note on your house and you make monthly payments. Everything went along great for 8 long good years but suddenly one day you lost your job and you couldn't make your payments anymore...months go by and you still can't make your payments ...you get behind on your NatGas home heating bills ...and your electric bills ...credit cards...etc etc..and the whole thing just spiraled out of control. You still owe Wells Fargo $300K on the house. You owe the NatGas co $500 ...and the electric company $500.

You decide to sell your home in the hopes to make enough to pay off all your debts ...but the housing market went sour and now your home is only worth $200K. You tried selling it for $301K but nobody would buy it for that price so Wells Fargo finally had to foreclose and kick you out. Since they hold the note to the house they own it..and they decide to put the house up for sale ..and it sells for $200K...which wasn't enough to cover their losses but that was all they could get.

Would the gas company or electric company (who are unsecured creditors) get any of that $200K?..or are they screwed?

Hopefully that gives you some idea how this works. I would not be holding these if I knew the guys ahead of me (who are secured) weren't going to get ALL they had coming. Because unless they get 100% of their money back first there won't be one thin dime left over for preferred shareholders. In this example you are the gas & electric company when you hold preferred shares of ATP. I hope that makes sense. Hold them at your own risk.

These Preferred shares sold for $100 each when they were originally issued.

Best of Luck ROCKHard.