Gastar Exploration Inc. (fka GSTCQ)

[Renee]

GSTCQ: Final Distribution will be made to holders at a rate of $0.00092469 per share. All shares will then be cancelled. ***NOTE: PPS closed at .0034 today.

FINRA deleted symbol:

https://otce.finra.org/otce/dailyList?viewType=Deletions

[Longer Than Most]

Nice volume, less selling. Double bottom formed. Possibly due for a pop

[Enterprising Investor]

Amended Order Approving the Debtors' Disclosure Statement for, and Confirming, the Debtors' Joint Prepackaged Chapter 11 Plan (12/21/18)

Source: BMC Group [Docket 282]

[MANOFTHEPEOPLE]

whoops! why? everyone knew GSTC was going to 0 by the 22nd... LMAO
dddduuuuuuuuuuuuuuuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrrrr

[Enterprising Investor]

Basing the calculation on OS actually understates the result.

Shares held by Ares should be excluded from the calculation. I just did not have time to look up the actual number prior to leaving my office for a party.

[MANOFTHEPEOPLE]

.000685 per share based 218,928,414 O/S

you couldn't figure that out? LMAO

[Enterprising Investor]

Preferred shareholders look to receive less than 2.43 cents per share based on $150,000 and 6.185 million preferred shares in total.

I will let someone else try to figure out what common shareholders will receive.

[Enterprising Investor]

Modification to the Proposed Pre-Packaged Chapter 11 Restructuring (12/18/18)

As previously disclosed, pursuant to the Restructuring Support Agreement by and among the Company and Ares Management LLC and certain of its affiliates (collectively, “ Ares ”), the Company commenced the solicitation of votes on the Plan on October 26, 2018, by causing the Plan and a related disclosure statement to be distributed to certain creditors of the Company that are “accredited investors” (as defined in Regulation D of the Securities Act of 1933, as amended). The Plan, which remains subject to confirmation by the Bankruptcy Court and other closing conditions, provides for the treatment of holders of equity interests in the Company and the treatment of claims arising in connection with the Chapter 11 Cases.

On December 12, 2018, the Company filed a modified version of the Plan (the “ Modified Plan ”), which modifies the proposed treatment of holders of Gastar’s 8.625% Series A Cumulative Preferred Stock and 10.75% Series B Cumulative Preferred Stock (collectively, the “ Existing Preferred Equity”) and holders of Gastar’s outstanding common shares (the “ Existing Common Equity”). Pursuant to the Modified Plan, holders of Existing Preferred Equity will receive their pro rata share of $150,000 in cash and the Existing Preferred Equity will be canceled. Additionally, holders of Gastar’s Existing Common Equity (excluding Ares) will receive their pro rata share of $150,000 in cash and the Existing Common Equity will be canceled.

https://www.sec.gov/Archives/edgar/data/1431372/000156459018021094/gst-10q_20180630.htm

[DFRANK1970]

GASTAR EXPLORATION INC. (GSTCQ) has released a new communication to its
shareholders.

https://materials.proxyvote.com/Approved/36729W/20181031/INFST_377544.PDF

[Mean Weimaraner]

Nice buys coming in this morn

[Mean Weimaraner]

Look out above

[Mean Weimaraner]

Paul shift 0088-011

[Mean Weimaraner]

Grabbed some 69/7

[Enterprising Investor]

It appears that the Plan was "officially" and "successfully" challenged.

Investors holding either common or preferred shares will receive warrants as long as no one challenges the current plan.

Can you please provide the docket or a link because no one is going to believe you, me or anyone else in a matter of days?

Gastar Exploration I (GSTCQ)
0.0036 +0.00105 (41.18%)
Volume: 3,512,170

[freddie me]

False - as per debtors counsel deathtrap triggered and NO WARRANTS for preferred or common

both are zeros

[Enterprising Investor]

Correct.

Investors holding either common or preferred shares will receive warrants as long as no one challenges the current plan.

[jdp2000]

All shares to be cancelled

if the plan is approved.

Class 10 Interests will be canceled, released, and
extinguished as of the Effective Date, and will be of no
further force or effect, and holders of Class 10 Interests
will not receive any distribution on account of such Class
10 Interests. To the extent no holders of Class 10 Interests
or Class 11 Interests seek appointment of an official
committee of equity security holders, seek the appointment
of a trustee or examiner, or object to or otherwise oppose
the consummation of the Restructuring Transactions,
Confirmation of the Plan, or entry of the DIP Orders,
holders of Class 10 Interests shall receive their Pro Rata
share of the New Preferred Warrants. If any holder of
Class 10 Interest or Class 11 Interests seeks appointment
of an official committee of equity security holders, seek
the appointment of a trustee or examiner, or object to or
otherwise oppose the consummation of the Restructuring
Transactions, Confirmation of the Plan, or entry of the DIP
Orders, holders of Class 10 Interests shall not receive the
New Preferred Warrants.

[Enterprising Investor]

Notice of (I) Commencement of Prepackaged Chapter 11 Bankruptcy Cases, (II) Combined Hearing on the Disclosure Statement, Confirmation of the Joint Prepackaged Chapter 11 Plan, and Related Matters, and (III) Objection Deadlines and Summary of the Debtors' Joint Prepackaged Chapter 11 Plan. (11/15/2018)

Voting Record Date: 10/25/18

The date for determining which holders of claims in Class 3, Class 4, Class 5, and Class 6 of the Plan were entitled to vote.

Deadline for Objections to the Plan: 12/17/18 at 4:00 Central Time.

https://docs.bmcgroup.com/Gastar/docs/txsb_4-18-bk-36057_179.pdf

Source: BMC Group [Docket 179]

[shurtha2000]

Any chance this pops NG going crazy

[freddie me]

Who is your daddy?

[MANOFTHEPEOPLE]

Appears so... GAINS WIPED OUT!

[freddie me]

Mkt action indicates committee denied

I know nothing for sure

[MANOFTHEPEOPLE]

BREAKTHROUGH the .04s and we are clear sailing back to a DIME!!!!

Super thin LFGO!

https://www.barchart.com/stocks/quotes/GSTCQ/cheat-sheet

[freddie me]

if they are fundamentally worth ZERO doesnt really matter whether you have committee or not

[ErnieBilco]

UNLESS the committee is approved - then you have the valuation fight.

I believe that blackmail is illegal even in BK courts and these kind of outright "bribes" are frowned upon by the court and usually goes against the scumbag CEO & his gang leading to the approval of a equity committee to fight for a fair piece of the new pie once baked.

JMO

[freddie me]

Equity and Prfds are worth ZERO imo based on fundamentals

Now that they have pushed for committee they are entitled to NOTHING

Bet you cant make an argument for value based on fundamentals

[ErnieBilco]

I've always done very well on post bankruptcy warrants - The preferred are set to get like 5% on the other side from the initial disclosure.

[ErnieBilco]

I jumped in really low low low - I never dive in too deep in case I need to get out fast. It's been good to me in the few days I've been in - ridin da freebies now so let it land where they will.

I will add if I see new lows.

[56Chevy]

Full Disclosure EB - I hold no position in Gastar...and it's highly unlikely I will. I'm here to do a little play by play announcing is all. It seems the market has been in a bit of a malaise as the big election approaches.

Personally I think Gastar is a terrible investment. Daytraders may make a buck or two but thats always laced with far more risk than they'll admit to. Think Russian Roulette. I know this isn't your first rodeo EB and you're well aware of the hype game that always accompanies a bankruptcy.

There have been over 300 O&G bankruptcies since November of 2014. About half of those were publically traded. You can count on one hand how many of those included equity in with the reorg ..and out of those few none (the companies or its shareholders) have done well upon exiting bankruptcy ..which begs the question why should Gastars' outcome be any different?

For me Gastars' ultimate success (for the company and its new or old shareholders) has less to do with how they structure a POR than it does that whatever plan Gastar comes up with it won't change the properties they hold. Oklahoma STACK players need $80 oil minimum to play ball. Gastar may find bankruptcy easier to survive than the task they'll be faced with post emergence.

Best of luck in whatever you decide to do here EB.

Marker:
Gastar Exploration I (GSTCQ)
0.029 down -0.001 (-3.33%)
Volume: 1,112,700

[freddie me]

*Objection of Funds Affiliated with Ares Management LLC to Emergency Motion of Certain Shareholders and Ad Hoc Committee of Certain Preferred Shareholders of Gastar Exploration to Appoint an Official Committee of Equity Security Holders

[freddie me]

If no committee, prfd and equity likely ZERO

May be last chance to sell

Appointment of committee difficult

Ares loaded for bear

[Enterprising Investor]

Wouldn't a challenge be the same as opposing the current plan?

[ErnieBilco]

Ahhhh, always a good sign when I run across 56Chevy.

[MANOFTHEPEOPLE]

OTCX now on the bid! Watch for a move here!

[56Chevy]

A and Series B Preferred Stock Holder retains Hunton Andrews Kurth and Surveys Preferred Stock Class

https://www.prnewswire.com/news-releases/gastar-exploration-inc-series-a-and-series-b-preferred-stock-holder-retains-hunton-andrews-kurth-and-surveys-preferred-stock-class-300705544.html

Marker:
Gastar Exploration I (GSTCQ)
$0.02925 up 0.00775 (36.05%)
Volume: 2,012,898

[freddie me]

WSJ:Gastar Shareholders Challenge Ares-Backed Bankruptcy Plan

[freddie me]

Isgur said some GSTC issues may make equity committee appropriate

[freddie me]

Judge Isgur appointed equity committee in Energy XXI
He mentioned this in GSTC proceedings

[Big Momma]

I like bankrupt companies that soar in price.

[Enterprising Investor]

Parties to the Restructuring

Company: Gastar; Northwest Property Ventures LLC; and any other future subsidiaries of Gastar (collectively, the “Company”).

Term Lender: AF V Energy I Holdings, L.P., as a lender (the “Consenting Term Lender”) under the Third Amended and Restated Credit Agreement, dated March 3, 2017 (as amended, restated, modified or supplemented from time to time, the “Term Credit Agreement”), by and among Gastar, as Borrower, the Guarantors specified in the Term Credit Agreement or in related transaction documentation, the Lenders from time to time party to the Term Credit Agreement and Wilmington Trust, National Association, as administrative agent (the “Term Agent”).

Second Lien Noteholders: The entities identified on Annex 1 attached to this Restructuring Term Sheet, in their capacities as holders of the notes (the “Second Lien Notes”) (in such capacities, the “Consenting Second Lien Noteholders”) issued pursuant to the Indenture dated March 3, 2017 (as amended, restated, modified or supplemented from time to time, the “Second Lien Indenture”), by and among Gastar, as issuer, the Guarantors specified in the Second Lien Indenture or in related transaction documentation, and Wilmington Trust, National Association, as trustee and collateral agent (the “Second Lien Trustee”).

Ares Equity Holders: The entities identified on Annex 1 attached to this Restructuring Term Sheet, in their capacities as holders of Gastar’s outstanding common shares (such common shares, together with any and all outstanding and unexercised or unvested warrants, options or rights to acquire Gastar’s currently outstanding equity, the “Existing Common Equity”) (in such capacities, the “Ares Equity Holders”; together with the Consenting Term Lender and the Consenting Second Lien Noteholders, the “Consenting Parties”).

The Company and each of the Consenting Parties is referred to in this Restructuring Term Sheet as a “Party”, and they are collectively referred to in this Restructuring Term Sheet as the “Parties”.

It is pretty simple. Ares is the plan proponent and a party as Term Lender. Ares is also a party as the largest stockholder.

Public shareholders are not a party.

However, all common shareholders receive the same treatement under the proposed plan as long as preferred and common shareholders both play along.

xii.Existing Common Equity: Holders of Existing Common Equity shall receive their pro rata share of 100% of the New Common Warrants (as defined below), which New Common Warrants shall be convertible into up to 2.5% of the number of shares, units or equity interests (as the case may be based how the New Common Equity is denominated) of the New Common Equity outstanding on the Effective Date. Notwithstanding the foregoing, holders of Existing Common Equity will not receive any New Warrants if any holder or holders of Existing Common Equity or Existing Preferred Equity seek official committee status or the appointment of a trustee or examiner, or object to or otherwise oppose the consummation of the Restructuring Transaction, the confirmation of the Plan by the Bankruptcy Court or the approval of the DIP Facility by the Bankruptcy Court.

I am a firm believe that throwing a bone to impaired classes just to move things along is a great idea.

However, this does not mean there will be much, if anything, left on the bone.

[Renee]

GSTC changed to GSTCQ, bankruptcy: (also GSPBQ, GSPAQ)

http://otce.finra.org/DLSymbolNameChanges

[56Chevy]

From the 8-k released this morning;

On October 26, 2018, the Company entered into a Restructuring Support Agreement (the “ RSA ”) with [....] (iii) certain holders of Gastar’s outstanding common shares (the “ Existing Common Equity ”) that are affiliated with Ares.

But in the Prospectus, also released this morning but an hour after the 8-k, it reads;

• subject to certain conditions, including that such holders not seek official committee status or the appointment of a trustee or examiner, or object to or otherwise oppose the consummation of the Plan, holders of the Existing Common Equity will receive their pro rata share of warrants to purchase 2.5% of the New Common Equity (together with the warrants listed in the previous bullet, the “ New Warrants ”).

Perhaps this is just legalese and doesn't really mean what it appears to be saying..??.. but the 8-k identifies who the "certain holders" of the existing common equity are that are included in the RSA i.e. those being affiliated with ARES. Period. Then in the Prospectus it says holders of the Existing Common Equity will recieve their pro rata share of warrants to purchase 2.5% of the New Common Equity.

If this is actually the plan [to include some legacy shareholders in the restructuring but not all] how does this not fly in the face of unequal treatment for the entire class?

And todays action seems to suggest that there may be alot of people (who are not affiliated with ARES but because of the wording in the Prospectus) are under the impression they too as legacy shareholders will be included in the RSA. ??

Which is it??

Marker:
Gastar Exploration I (GSTC)
0.0228 up 0.0176 (338.46%)
Volume: 16,459,224

[freddie me]

Gastar's offer of warrants is withdrawn
if someone files/ filed for committee...

[Enterprising Investor]

One of two things: short covering or II's.

Most likely both...

• subject to certain conditions, including that such holders not seek official committee status or the appointment of a trustee or examiner, or object to or otherwise oppose the consummation of the Plan, holders of Gastar’s 8.625% Series A Cumulative Preferred Stock and 10.75% Series B Cumulative Preferred Stock will receive their pro rata share of warrants to purchase 2.5% of the New Common Equity; and

• subject to certain conditions, including that such holders not seek official committee status or the appointment of a trustee or examiner, or object to or otherwise oppose the consummation of the Plan, holders of the Existing Common Equity will receive their pro rata share of warrants to purchase 2.5% of the New Common Equity (together with the warrants listed in the previous bullet, the “New Warrants”).

[Garyst]

That's what I'm wondering. Co files Bankruptcy and the price soars.

[JMMatthews]

What happened here? Wow

[davidsson10]

Wheeeee!

[Zardiw]

Thanks Chevy!........



z

[SaltyMutt]

When GSTC went splut, it didn't play around!

[56Chevy]

As expected and predicted GSTC could not avoid bankruptcy. Expect the filing very soon.

RSA = Restructuring Support Agreements

Current Report Filing (8-k)
Date : 10/29/2018 @ 7:03AM
Source : Edgar (US Regulatory)
Stock : Gastar Exploration Inc. (GSTC)
Quote : 0.0155 -0.0295 (-65.56%) @ 11:56AM

[....]

Item 1.01 Entry into a Material Definitive Agreement.

Restructuring Support Agreements

After an extensive private marketing process, beginning in August 2018, Gastar Exploration Inc. (“ Gastar ”) embarked on a public marketing process to try to address its balance sheet liabilities. On August 21, 2018, Gastar publicly filed a process letter that again invited proposals and informed the public how any interested party could participate and make a proposal. The process letter established the bid deadline of October 1, 2018 (the “ Bid Deadline ”). Gastar received three bids on the Bid Deadline, none of which provided a basis for repaying Gastar’s indebtedness described below. Gastar’s board of directors (the “ Board ”) determined that none of these proposals presented an actionable alternative.

In parallel with the foregoing marketing process, Gastar engaged with funds affiliated with Ares Management LLC (“ Ares ”) regarding a comprehensive financial restructuring transaction. On October 26, 2018, Gastar and its subsidiary (collectively, the “ Company ”) entered into a restructuring support agreement (the “ RSA ”) with (i) AF V Energy I Holdings, L.P., an affiliate of Ares (the “ Consenting Term Lender ”) and party to the Third Amended and Restated Credit Agreement, dated March 3, 2017 (as amended, restated, modified, or supplemented form time to time, the “ Term Credit Agreement ”) (ii) certain holders affiliated with Ares (the “ Consenting Noteholders ”) of the Company’s Convertible Notes due 2022 issued pursuant to the indenture dated March 3, 2017 (as amended, restated, modified or supplemented from time to time, the “ Second Lien Indenture ”), by and among Gastar, as issuer, the guarantors specified therein and Wilmington Trust, National Association, as trustee and collateral agent and (iii) certain holders affiliated with Ares (the “ Ares Equity Holders ” together with the Consenting Term Lender and the Consenting Noteholders, the “ Consenting Parties ”) of Gastar’s outstanding common shares (the “ Existing Common Equity ”), to support a restructuring (the “ Restructuring ”) on the terms set forth in the term sheet annexed to the RSA (the “ Restructuring Term Sheet ”). The RSA contemplates that the Company will file for voluntary relief under chapter 11 (the “ Chapter 11 Cases ”) of the United States Bankruptcy Code (the “ Bankruptcy Code ”) in a United States Bankruptcy Court (the “ Bankruptcy Court ”) to implement the Restructuring pursuant to a “prepackaged” plan of reorganization (the “ Plan ”) and the various related transactions set forth in or contemplated by the Restructuring Term Sheet, the DIP Term Sheet (defined below) and the Exit Facility Term Sheet (defined below). Shortly after entering into the RSA, the Company commenced solicitation of the Plan consistent with section 1126(b) of the Bankruptcy Code, which solicitation the Company anticipates will conclude on or about October 30, 2018. After the conclusion of such solicitation, the Company intends to commence the Chapter 11 Cases to implement the transactions contemplated by the RSA and Plan.

Pursuant to the terms of the RSA and the Restructuring Term Sheet, the Consenting Parties and other interest holders will receive treatment under the Plan summarized as follows:

• holders of claims under the DIP Facility (defined below) arising on account of the New Money Loans (defined below) will receive pro rata participation in the First Lien Exit Facility (defined below) in an amount equal to such claims arising on account of New Money Loans;

• holders of claims under the DIP Facility, other than claims arising on account of the New Money Loans, will receive (a) pro rata participation in the Second Lien Exit Facility (defined below) up to an aggregate amount of $200 million and (b) to the extent any such claims exceed $200 million, such excess will receive a pro rata share of 100% of the common equity in the reorganized Company (the “ New Common Equity ”);

• holders of claims under the Term Credit Agreement will receive (a) to the extent there is remaining availability under the Second Lien Exit Facility, pro rata participation in the Second Lien Exit Facility in an equal face amount not to exceed $200 million and (b) to the extent any such claims remain outstanding, their pro rata share of 100% of the New Common Equity, subject to dilution upon the issuance of common stock upon exercise of the New Warrants described below and pursuant to a new management incentive plan to be entered into at the discretion of the board of the reorganized Company following emergence from bankruptcy (the “ Management Incentive Plan ”);

[....]

Source:
https://ih.advfn.com/p.php?pid=nmona&article=78556630