Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
According to annual report for FY 2011,ATP has already spent $492Mn on it. But since its not yet complete, dont know how much its worth
I know alot of guys disagree with me re: the BP claim and that's ok. I'll buy everybody here a Cheeseburger and a beer if BP pays out more than $150MM by early 2014 on that $3B claim. Winning a judgment and getting paid are 2 different things.
I'm more interested in what Octabuoy is worth.
you are right, the DIP guys did what they had to do and they are accepting the risk and reward when nobody would. I just hope what's left is enough to partially compensate 2nd lien investments. But taking away the BP claim is going to knock the wind out of any substantial compensation for the bondholders.
I hope you are right that the company is more valuable being sold in pieces, but how much is left for everybody else after what the DIP guys took?
Large? It is enormous. I think that is why the DIP wanted to nip this in the bud, rush the POR, do their credit bid and prevent ATP from developing any viable plan of survival. If the POR process took any longer, viability would have been likely and the NOL carry forward would have been useful. DIP lenders' plan was to undercut this whole process and prevent ATP and creditors/2nds/equity holdrs from reaching the promised land. If ATP successfully reorganized, it would have been a matter of time before the BP claim awards would go to EVERYBODY. But now it would ONLY go to the DIP guys if the bid gets approved.
...but it's not up to the judge to allow or disallow NOL's. He has no say in that...the IRS does.
Prior to the BK filing ATP was losing $1.1MM @ day...and if that went on for a year and half you're talking over $500MM in the red.
Again guys...ATP may well be worth more but nobody stepped up and laid cash on the line....so Mr. Market stepped up and said the ATP assets were worth exactly what OpCo paid.
I highly doubt the Judge will reject anything unless someone can bring him a legal reason to reject. Telling him "it's worth more" won't cut it..because it wasn't worth more to several Multi-billion dollar oil companies at 9am on Monday.
It may be and probably is worth more in pieces...but it takes alot of time and alot of money to sell something like this in pieces. ATP had neither time nor money.
Bankruptcy is really a state of being financially insolvent AND time insolvent.
The buyer had to take the crap with the cream in this auction ..and it was priced accordingly.
What if OpCo isn't the "bad" guys? I don't want to start any rumors or give false hopes..but we don't know who they are or what they plan to do. This isn't over. I would expect the subsidiaries to file CH 11 sometimes soon and we'll see what that holds. 2nd Lien holders are now coming to the plate..its our turn at bat.
And isn't the NOL large? Why in the world would ANYONE with a brain walk away from that with only 53 million shares, you can sure make some kind of deal to keep the value of the NOL ...???? Just another reason I THINK this ain't over yet.....
I think the judge will reject the bid if mgmt doesn't. This is the same judge that preserved the NOL. Why would he allow NOL carry forward if he doesn't want the company to reorganize or at least a fair outcome to most/all of the parties involved?
You are probably right. Can't blame CS for the situation. Whoever CS is buying for is getting a good bargain.
I agree in THEORY , BUT in reality, the real value of any O&G is MUCH higher, several times higher, when you have producing wells not unproven reserves. That being the case, it will be much more valuable once next Clipper well has history AND they have chance through BK to deal with ORRI etc....I feel thay are not using BK AT ALL to save the rest of the estate as they have a fiduciary to do....IF bleeding has stopped they need to reject bid and let Mgmt make deals and lots of this goes away...Then assets can be sold over months, piece by piece for far better pricing.....
I hear ya stoxjock..I really do.. but it's hard for me to be critical of CS in a situation like this. I would have done the same thing had purchasing the BP claim been an option for our "team".
CS/OpCo bought the assets fair and square...it may not feel that way but they really did. The whole O&G world had a chance to pony up more money and they didn't..the value simply wasn't there. ATP was grossly over-leveraged to the point I think it fooled alot of people and this auction just proved it.
CS is just the agent for the actual buyers. What I wanna know is -who really are the buyers of these assets? They're calling it OpCo ...but who is that? ..and what are their plans?
at least the unsecured creditors commitie is fighting for us :)
http://www.kccllc.net/documents/1236187/1236187130508000000000001.pdf
we should see there objection by 4pm today
Wouldn't be surprised at all if they go sub $1.00 range by Friday. I may take a gamble on them then...
Zions Direct showing 2.053/3.000
Wow ! This is Highway Robbery by Credit Suisse. I don't know how this management did the DEAL with the DEVIL... Perhaps they were 'in' on this whole BK thing. Crooked Mgmt always leaves the SHareholders holding dust!
Im with ya Chevy. Thnx for the message. There still feels like a long way to go to see this settled. It just goes WAY beyond any kind of fairness or common sense to let this dea; go through as - is. BUT i am a realist and ANYTHING can happen in the courts...In my humble opinion it is a COMPLETE travesty to not allow the estate all the way down to have a chance at the POTENTIAL windfall from the BP suit....and now that the bleeding has stopped or very close to it, why not give it some more time..?
do you have a page number for that
thanks
It will be a real travesty, especially when the people involved in the proceedings already have the April revenue number, after seeing the nice increase in the March number from just 14 days of one Clipper well, IF they approve this as is. It SHOULD be rejected and there are plenty of people who will fight this.
Whoops! Great find.
Now everyone can stop talking about the millions (or billions) flowing to the estate if the suit was successful.
It pays to read every docket filing carefully and more than once. Sorry, I checked out of this case a long time ago. Then again, that would not really be the truth. I never really do "check out".
Non-filing subs were not part of the sale.
However the claim and any awards ATP receives from BP if successful goes to CS/OpCo.
Schedule 2.02(o)
Purchased Claims
All Claims related to or arising out of the blowout of BP’s
Macondo well and the resulting explosion of the Deepwater Horizon in the Gulf of Mexico (“Deepwater Horizon Spill”), the subsequent moratorium, and/or other consequences of the Deepwater Horizon Spill against BP Exploration & Production Inc., BP America Production Company, BP p.l.c., and/or related entities (collectively, “BP”) and/or other defendants, including the Claim submitted in January 2013 under the Oil Pollution Act of 1990 for loss of profits and earning capacity as a result of the Deepwater Horizon Spill and any similar Claims against the United States of America and any agencies thereof as now or previously constituted, also arising out of the Deepwater Horizon Spill, the subsequent moratorium, and/or other consequences of the Deepwater Horizon Spill.
Source: kccllc Doc #1816-6
So true, this doesn’t look good.
The epiphany of greed, sorry boys and girls, if the board approves the sale; shame on them, if the court allows the sale; shame on them, and all those professionals working the BK for the debtor; collecting tens of millions, shame on them. It also appears these same folk’s working for the debtor will get paid with the $45M set aside; you have to give a bone to these professionals, who knows when you might need them.
I have spent a few hours reviewing the court “sales” document and will spend more time tomorrow, but it looks like the dip lenders want everything, they even want the BP claim. Looks like we get to keep ATP UK and ATP Israel, but they want the intercompany receivables. That’s more than the dip loan. So we can count on them suing us for those dollars.
If the sale is approved there will be nothing left.
With nothing left for the second lien holders, the preferred and the common, maybe it might be time to join forces with everyone else left out. With everyone, all creditors, who were left out taking an equity position in the reorganized company all the debt goes away, except for the dip.
Who thinks the company can’t get funding then, to pay off the dip?
It will be interesting to see what the board does, what the court does and if we might now see a reorganization plan from management. The shock of getting nothing is a real motivator.
It’s hard to stay focus with what appears to be bad news, but I am not selling any of my positions, bonds and preferred, this week anyway. I am waiting to see what the board will do, the court will do and the different committees might do.
If the bottom falls out while I am waiting, I might buy a few more bonds and preferred shares.
assets part of the sale
(n) all intercompany notes and receivables and interests therein held
by Seller, including notes issued by ATP UK and ATP Israel;
this doesn't look good?
$3.250 Bond price as of 5/7/2013
ATPG.GE / CUSIP: 00208JAE8
Last: $3.250
http://cxa.gtm.idmanagedsolutions.com/finra/BondCenter/BondDetail.aspx?ID=MDAyMDhKQUU4
Good Luck!
hey chevy did atp sell the North Sea uk assets and Eastern Med properties? and the claim against bp? also was titan included?
im with you good riddins dip lenders!!!
its a shame the auction didn't go for over 1 billion :(
Hard to find anything about this BK since day 1 that's been a positive for 2nd Lien Holders...but in a way I consider today's news "good" in that this means good-bye to the DIP Lender...and not a moment too soon.
It may be a fight but 2nd Lien Notes are now the Primed Lien for the rest of this story...and that should prove to get interesting.
NOTICE OF DEBTOR’S DESIGNATION OF SUCCESSFUL BID
PLEASE TAKE NOTICE that, pursuant to the Bidding Procedures approved by the Court in conjunction with the Order (A) Approving (i) Bidding Procedures; (ii) Bid Protections; (iii) Auction Procedures; and (iv) Assumption and Assignment Procedures; (B) Approving Notice Procedures for (i) The Solicitation of Bids; and (ii) An Auction; (C) Scheduling Hearings on Approval of a Sale or Sales of Substantially All of Debtor’s Deepwater Property Assets; and (D) Granting Related Relief [Dkt. No. 1419] (the “Bid Procedures Order”), ATP Oil & Gas Corporation (the “Debtor”) conducted an auction of substantially all of its assets on May 7, 2013(the “Auction).
PLEASE TAKE FURTHER NOTICE that, at the conclusion of the Auction, the Debtor selected the bid of Credit Suisse AG as administrative and collateral agent to the DIP Lenders as the Successful Bid (as defined in the Bidding Procedures) with the highest and best bid submitted at the Auction. The Debtor shall promptly submit the Successful Bid to its Board of Directors for its consideration. The Debtor did not designate a Backup Successful Bidder at the close of the Auction.
[....]
ARTICLE III CONSIDERATION
Section 3.01 Purchase Price. The consideration for the sale, transfer and assignment of the Assets by Seller to Buyer is Buyer’s payment to Seller of the sum of $690,800,000 (the “Purchase Price”), as adjusted at the Closing pursuant to
Section 7.02(c) (the “Adjusted Purchase Price”), and Buyer’s assumption of the Assumed Obligations. The Adjusted Purchase Price shall be paid by Buyer to Seller at the Closing by (i) paying $45,000,000 in cash to satisfy legitimate Liens on Assets that are ranked senior to the DIP Claims by means of a completed wire transfer in immediately available funds to the account of Seller as designated by Seller to Buyer in writing prior to the Closing (the “Closing Cash Payment”) and (ii) paying the difference between the Adjusted Purchase Price and the Closing Cash Payment, if a positive number, by a Credit Bid of a portion of the value of the DIP Claims. The amount of the Closing Cash Payment shall be held in escrow by Seller and distributed as promptly as practicable after Closing as follows: (x) to the holder of each Lien asserting priority to the DIP Claims upon agreement by Buyer or upon a final and non-appealable order determining that such Lien is ranked senior to the DIP Claims and (y) to Buyer as and to the extent that the Closing Cash Payment exceeds the aggregate amount of the remaining Liens asserting priority to the DIP Claims (excluding any Liens that have been
determined by a final and non-appealable order to be ranked junior to the DIP Claims).
[....]
Source: kcclls Doc # 1816
http://www.kccllc.net/documents/1236187/1236187130507000000000006.pdf
*This was not what the DIP wanted...they're in the Oil business now. Can you spell - For Sale soon!
In my non-attorney opinion there is no way they can put the stake through ATP heart UNTIL that has been settled.....They WILL get money from BP.......
All of the docs you referenced were dated before March 1. Was there anything more recent? A lot can happen in 2 months. It seems now a big turn for the worse unless they can hold the wolf at the door until they get a decision on the BP settlement. Seems like that at is at least another 2 months away. Chances of thier survival just keep getting thinner.
You are correct tomorrows auction does not include non-filing UK properties.
You can't seize assets of a non-filer...but what little profits (If any..because those UK properties have a negative net value) have been streamed to the Debtor per the DIP agreement. Any cream was sent to the parent co.
If 2nd Lien holders get much out of this it will come from the eventual ch 7 liquidation of those subs.
Those subs are worth more sold in pieces than they are as a business.
http://www.kccllc.net/documents/1236187/1236187130214000000000064.pdf
check page 17 property to be sold
im confused on this. I was thinking uk assets etc are not included
also
found this post on motley fool atp message board
http://boards.fool.com/deepwater-asset-sales-30437501.aspx?sort=postdate
Received the flyer for the sale of all of ATP's deepwater GoM assets this morning. The sale does not include the Titan nor any North Sea assets but it does include all of their GoM fields and their half interest in the Innovator located at Gomez. The Titan is not included because it is subject to an essential lein by Beal Bank so any deal for the Titan has to be negotiated with them. It is a separate entity from ATP and since ATP is in default I suspect Beal Bank essentially owns it.
Lots of reserves indicated. Most of them Proven Undeveloped especially at Gomez. They should have spent a lot more time developing these reserves at Gomez where they would have had immediate production from them rather than drilling Clipper and Shimshon.
No disrespect here, but there seems just a little more going on behind the scenes; true “A reorganization would require a plan to reorganize...and so far we have had no such plan put forth by anyone”.
However we do have the Mayer Brown “bill” filing #1652. Just for fun bring this document up and do a “keyword search”. There does appear to be a lot of hours billed regarding the Plan of Reorganization. (POR)
I searched POR, reorganization and the word strategy in the document.
The following are a few of my favorites;
01/03/13 Reimer, Craig E. 0.60
Email (0.20) and calls (0.40) with tax counsel (S. O'Brien and J. Hunt) regarding preservation of NOL, court procedures for obtaining commitments by substantial equity holders and plan of reorganization options.
02/22/13 Hyman, Frederick D. 4.80
Review draft term sheets for precedent (0.70). Continue working on preliminary draft of term sheet for plan, including, terms of preferred shares and warrants
(4.10).
And a few more billings addressing reorganization; POR
12/12/12 Reimer, Craig E. 1.10
Prepare for and participate in conference call with Opportune and ATP to go over issues regarding analysis of M&M liens and process for addressing same in connection with facilitating sale and/or plan of reorganization in chapter 11 case (0.80), follow-up discussions with C. Walsh regarding excel spreadsheets to prepare and legal research to perform relating to such lien analysis (0.30).
12/20/12 Lotito, Michael F. 1.70
Participated in conference call with ATP and advisors regarding plan formulation (0.60); conference with H. Beltzer, F. Hyman, and C. Walsh regarding same (0.30); researched precedent for disclosure statement, plan of reorganization,and confirmation order (0.80).
01/04/13 Toland, Rue K. 2.10
Research and analyze rights offerings in conjunction with plans of
reorganization.
01/30/13 Lotito, Michael F. 0.20
Attention to draft plan of reorganization term sheet with F. Hyman.
02/04/13 Beltzer, Howard S. 0.10
Conference with R. Hyman regarding POR issues.
02/06/13 Gray, Robert F. 2.10
Telephone conference with MB lawyers to develop POR strategy for case (1.40). Conference with Charles regarding alternative structures and interests of constituents (DIP, Seconds and UCC) in light of most recent pronouncements by Judge Isger regarding UCC (0.70).
02/08/13 Kelley, Charles S. 2.10
Meeting with Al and Keith and Bob to discuss plan concepts and strategy towards plan structure.
02/13/13 Kelley, Charles S. 1.00
Internal call with B. Trust to discuss POR planning and strategizing.
02/14/13 Beltzer, Howard S. 0.10
Read correspondence from T. Janne regarding POR concepts.
02/22/13 Beltzer, Howard S. 0.10
Correspondence with R. Hyman, T. Janne, C. Kelley regarding POR outline.
02/25/13 Beltzer, Howard S. 2.10
Read draft plan outline (0.70). Related conferences with R. Hyman (0.30). Telephone conference with R. Silverman (with R. Hyman) (0.20). Conference call with MB/Jefferies/Opportune team (0.90).
02/25/13 Gray, Robert F. 1.70
Review Preliminary Term Sheet for Chapter 11 Plan (1.00). Attend telephone conferences with Jefferies and MB re same (0.70).
02/25/13 Hyman, Frederick D. 3.30
Edits to plan term sheet (1.00). Call with plan sub group regarding plan structure (0.90). Edits to term sheet (1.00). Follow-up with R. Silverman regarding plan alternatives (0.20). Call with Bingham regarding same (0.20).
02/25/13 Lotito, Michael F. 1.20
Prepared for and participated in conference call with advisors to debt regarding plan formulation.
02/26/13 Beltzer, Howard S. 0.50
Conference with R. Hyman (0.20). Telephone conference with C. Kelley regarding issues regarding POR outline (0.10). Attention thereto (0.20).
02/26/13 Hyman, Frederick D. 2.00
Work on plan term sheet.
02/26/13 Lotito, Michael F. 0.50
Conference with F. Hyman on plan formulation.
02/27/13 Beltzer, Howard S. 0.10
Conference with M. Lotito regarding credit bid issues.
02/27/13 Hyman, Frederick D. 1.90
Work on edits/updates to plan term sheet (1.50). Call with Jefferies regarding credit bidding issues (0.40).
02/28/13 Kelley, Charles S. 2.30
Meeting with J. Latimer, J. Homier and A. Reese to discuss strategy on plan structure and related items.
Does that mean, the new owner can cancel all Stock incl. preferreds and negogiate some settlement with various classes of bondholders?
I think the auction is limited to GOM assets and does not include UK assets.
Kccllc: Document 1419 p17 (1.Property to be sold)
Plan for the worse and hope for the best!
When it’s all said and done the reorganized company may only have one asset left.
I don't know how else to say this- The new owners step into the old owners shoes..only without the debt. period.
If BP, for example, decided a year from now (assuming ATP had new owners) they wanted to settle for $1B...then the new owners would get that money.
The new owners assume all rights and responsibilities....good or bad.
What if Clipper had a blowout simular to BP's a year from now - should you as the old owner of ATP be responsible to clean it up and pay restitutions? ...or should the new owners?
Plan for the worse and hope for the best! When it’s all said and done the reorganized company may only have one asset left.
From the Mayer Brown filing #1652
E. Asset Analysis and Recovery
22. During the Second Interim Period, Mayer Brown assisted the Debtor with evaluating and prosecuting its claims against British Petroleum (“BP”) arising out of the Deepwater Horizon spill and its aftermath. These claims represent potentially significant assets of the estate. Mayer Brown worked with Motley Rice LLC and Fayard & Honeycutt APC4 to submit a claim on behalf of the Debtor to BP for over $3 billion. Mayer Brown’s services were vital to preserving these potentially significant claims for the benefit of the Debtor and creditors alike.
Don’t believe they can sell this claim to others, those holding shares in the reorganized company will be the ones benefiting from this “possible” asset, if want to call this action an asset as stated in E. 22.
I agree!
This means everything, including the CEO's desk and chair.
Does that mean, the new owner can cancel all Stock incl. preferreds and negogiate some settlement with various classes of bondholders?
Ok...and the point is?
Yes BUT.....you can also sell land (or lease) with timber rights and not hydro carbon...OR without timber and with water and without hydro carbons.....Was there any exceptions like for the proceeds of suits...?
From the Mayer Brown filing #1652
02/01/13 Gray, Robert F. 0.20
Work with Rick Hyman on foreign lien issues in DIP agreement regarding UK assets.
12/10/12 Gray, Robert F. 0.80
Review IOG proposed transaction for purchase of ATP UK (0.30); and telephone conference with John Tshirhart, Leland Tate and Charles Kelley (0.50).
02/20/13 Beltzer, Howard S. 0.10
Correspondence with C. Kelley regarding UK equity sale issues.
02/27/13 Gray, Robert F. 1.80
Attend coordinating meeting with UK to discuss US issues in connection with sale of shares of UK, process, timing and milestones (1.30); follow up call with Devi Shah and Rob Hamill (0.50).
Think of it this way - If I sold you some land that might or might not have oil on it ...and later you did find oil...who's oil is it?
It's yours...not mine. I didn't just sell you land, I also sold you my rights to any such future windfalls...(or pitfalls).
The Sale is "...free and clear of Liens, claims, encumbrances and other interests..."
The new owners step into the previous owners shoes...for better or for worse.
Good catch.....Ok...Next question....Are the claims / suits included also....Wouldn't they be an asset of ATP...? If so, then I am sure all bids will be rejected.....
even after the auction there is still other assets to go around subs of the debtor
Tough to say...other assets....lawsuit vs government $65 million + asked for.....Lawsuit vs BP, $3.1 bil asked for...North Sea....etc....other leaseholds and equipment.....
even after the auction there is still other assets to go around subs of the debtor
http://www.kccllc.net/documents/1236187/1236187130122000000000030.pdf
PERIODIC REPORT REGARDING VALUE, OPERATIONS AND
PROFITABILITY OF ENTITIES IN WHICH THE ESTATE OF ATP OIL & GAS
CORPORATION HOLDS A SUBSTANTIAL OR CONTROLLING INTEREST
Is the main reason to reject bid to allow the company to successfully reorganize? I know the DIP want a fire sale and want nothing to do with this 'oily' mess.
What would bond holders get per bond if the 1 billion plus offer is accepted?
Auction Predictions...Will be fun....Mine is that bids go slightly over $1 B and winning bid is rejected....
Thanks for your post explaining your hedging strategy, it's strategically very sound.
On Tuesday, ATP Oil & Gas Corp. (ATPAQ) is set to auction its deep-water drilling assets. The company hasn't designated a lead, or stalking-horse, bidder for the assets, but its lender, Credit Suisse AG (CS), recently disclosed it planned to make an offer by bidding debt it's owed as currency. ATP owes its top-ranking lenders, including Credit Suisse, $600 million.
The Houston bankruptcy court is slated to review the auction results at a Thursday hearing. In February, the bankruptcy court cleared ATP to auction leasehold and other working interests in 23 deep-water areas off the shores of Texas and Louisiana, including related production facilities, pipelines, machinery and equipment. The company has been searching for buyers for the deep-water assets as well as separate shallow-water assets since October. ATP said previously seven potential bidders for the deep-water assets signed confidentially agreements to review information.
ATP filed for Chapter 11 protection in August. It blamed its financial woes in part on the drilling ban put in place in the Gulf of Mexico, where 90% of its wells are located, after the disastrous 2010 Deepwater Horizon oil spill. It resumed drilling after the ban was lifted. -Jacqueline Palank, Patrick Fitzgerald, Yogita Patel and Andrew R. Johnson contributed to this article. Write to Marie Beaudette at marie.beaudette@dowjones.com.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires (END) Dow Jones Newswires
Followers
|
6
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
588
|
Created
|
09/28/12
|
Type
|
Free
|
Moderators |
For current price click on FINRA Link below
http://cxa.gtm.idmanagedsolutions.com/finra/BondCenter/BondDetail.aspx?ID=MDAyMDhKQUU4
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |