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Sounds good to me :)
Tmrw 90, dollars by Friday:)
$1 tomorrow?
LNCO above 50 we are going to follow suit!!
Nice!! Power hour starting
Almost every Tuesday, the shorters short. Almost every week. A lot of time they get screwed if they don't do it right. You will see
How do you know that shorts have to cover tomorrow ?
Here you are...shorts...untill 18th selling
about time it jumped back uo.... pass .50 come on.. hit .50 before the say is over
Yup as long as media keeps "leaking" oil freeze news we are golden
Gapper tomorrow
Same here... Would be nice if they didn't short so I didn't have to dump them AT .466 wAS REALLY HOPING it would break at least .60
nice day here got in this morning looking for 2 or 3 more nice candle 1.00+ imo this week tic toc tic toc
Oil at 42!! Going over 50 here!
Great... now they are shorting it. Couldn't they have waited til tomorrow when the stock would be way up
Also why I chose LINE over LNCO haha. Figured it had to catch up
Bought in yesterday. Had a feeling we may repeat feb
Lol yes I've been lucky to get in on good picks:) I try to post around to share good picks I see, this is only day 1 of oil rally! Going to be hype around chatter of oil freeze this weekend.
I need to start following you
I've noticed you around a bunch of tickers I like, but you obv jump in way before I do and I end up not wanting to chase the run up haha
This could obv keep going, though
GL
LINE$
Trading just like back in February on oil freeze chatter!
Whales buying LINE nice!!!
Another HOD:)
Looking sweet GO LINE!!
40 break en route!! Same pop as February!!
How is this lower than LNCO?? Should see a nice surge
Chapter 7 vs 11 doesn't make much difference here. Many Chapter 7s later convert to chapter 11. Plus...
"A Berkeley Law paper about Chapter 11 filings indicated that in at least 82% of the cases, equity holders received nothing. Only 12% of reorganization plans involved a return for equity holders when creditors had not been made whole.
http://bit.ly/1S1Pdjz
In Linn's case, the unsecureds are likely highly impaired. If that's the case, there will be no return for equity holders. You'd be hard pressed to find a case where unsecureds were looking at 10-20 percent recovery perhaps, and the equity still got something. That's just wishful thinking and not backed up by historical results from Chapter 11 cases."
http://seekingalpha.com/article/3963900-linn-energy-common-equity-going-worthless
"I don't think Linn's common equity has any value. In the case of Linn Energy's units, the value is probably significantly negative due to the tax issues surrounding the units. I don't believe that Linn's unsecured debt is a bargain at current levels either. There are some calculations to work out for the division of assets between Berry and Linn, but overall it would take the higher end of the $4.5 billion to $5 billion valuation range for the unsecured notes to potentially see some upside from current prices. I am staying out of the bonds for now."
http://seekingalpha.com/article/3963900-linn-energy-common-equity-going-worthless
And he gives well-supported reasons he's short. READ the excellent article and the comments!
•There should really be no doubt now that Linn is headed for a restructuring in which the current common equity is going to be worthless.
•The argument that there are still people willing to buy its stock/units doesn't mean much as there has previously been buying activity for stocks that were approved to be cancelled.
•Linn's enterprise value during restructuring negotiations is estimated at $4.5 billion to $5.0 billion.
•This may result in a modest recovery for the unsecured bonds, with second-lien negotiations being key.
•Current bond prices don't appear to be a bargain though.
http://seekingalpha.com/article/3963900-linn-energy-common-equity-going-worthless
From seeking alpha, he's obviously short LINE:
Linn Energy: Common Equity Is Going To Be Worthless
Apr. 7, 2016 6:24 PM ET
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About: Linn Energy, LLC (LINE), LNCO
Elephant Analytics
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Summary
•There should really be no doubt now that Linn is headed for a restructuring in which the current common equity is going to be worthless.
•The argument that there are still people willing to buy its stock/units doesn't mean much as there has previously been buying activity for stocks that were approved to be cancelled.
•Linn's enterprise value during restructuring negotiations is estimated at $4.5 billion to $5.0 billion.
•This may result in a modest recovery for the unsecured bonds, with second-lien negotiations being key.
•Current bond prices don't appear to be a bargain though.
Linn Energy (NASDAQ:LINE) appears to have cleared its path for restructuring with the unit-to-share exchange with Linn Co (NASDAQ:LNCO) and its settlement with its second-lien note holders. The restructuring is extremely likely to wipe out the common equity, yet there are still some people buying. However, the fact that Linn hasn't collapsed to zero yet doesn't mean much as even stocks which have been confirmed to be worthless soon by the courts can find buyers willing to pay pennies for it.
I estimate that post-restructuring, Linn Energy could have an enterprise value of approximately $4.5 billion to $5.0 billion. Using this value during restructuring negotiations may result in full coverage of the secured debt. The negotiations with the second-lien note holders appear to be key for determining what recovery the unsecureds could get.
Restructuring Has Been Telegraphed
Linn Energy has done many things to indicate that it is restructuring soon. It fully drew down its credit facilities. There is language in its filings about substantial doubt that Linn can continue as a going concern. It also skipped its March interest payments and started an exchange that is designed to protect unit holders from cancellation of debt income in the event of a restructuring. Finally, the agreement it reached with second-lien debt holders included a requirement for those debt holders to negotiate a restructuring in good faith. It is pretty much impossible to look at that information and come to a conclusion that Linn isn't restructuring.
There Still Are Buyers
One argument that has been trotted out in favor of Linn is that there are still buyers for its stock/units and that if the news was really that bad, there would be no buyers. I would say instead that there are always going to be buyers for a stock, regardless of how dire the situation is. Some of the buyers may be short-term traders, while others just see a stock that appears cheap (compared to historical prices) without actually doing any due diligence on the company. Even when a company outright states that its common stock is going to be worthless, there are still people willing to purchase the stock.
As an example, Exide Technologies emerged from Chapter 11 restructuring on April 30, 2015. Its common stock was canceled at that time as per the restructuring plan that was confirmed by the courts on March 27, 2015. Despite Exide indicating that the common shares would be canceled and the bankruptcy court approving the plan, its common stock still traded for pennies between March 27 and April 30. A couple million dollars worth of transactions went through after the stock was set for cancellation, with the only unknown being the exact date that the common shares would be cancelled.
Valuing Linn
In the current environment, I estimate that Linn's enterprise value could be around $4.5 billion to $5.0 billion post-restructuring. This is based on a long-term oil price of around $55 and a long-term natural gas price of around $3, which appears to be roughly around the price points that a significant number of other companies are currently being valued at. This also incorporates the remaining value of Linn's hedges.
Reducing its debt to a manageable level would require at least a $5 billion reduction in debt for Linn, while a $6 billion reduction would be more ideal. Reducing debt by that amount would bring Linn's break-even point without hedges down to the $50 to $60 oil range, along with $3 natural gas.
If Linn's enterprise value during restructuring negotiations ends up being pegged at around $4.5 billion to $5.0 billion, that would theoretically leave only a limited amount of value for the unsecured bonds. Linn has $4.5 billion in first-lien debt and approximately $1.17 billion in cash (including restricted cash) along with $1 billion in second-lien debt, which nets out to $4.33 billion in secured debt (after subtracting cash).
The second-lien debt appears to be key to the restructuring plan, since Linn probably needs to convert that to equity to get its post-restructuring debt down to what I think would be a viable level for it going forward. The second-lien debt holders also appear likely to control a significant portion of Linn's equity post-restructuring. If the restructuring negotiations with the second-lien debt holders fail, then it appears that the second-lien debt turns into $2 billion in unsecured debt again, albeit as 12% notes. Linn's common equity is certainly well out of the money and shouldn't expect a return.
Conclusion
I don't think that Linn's common equity has any value. In the case of Linn Energy's units, the value is probably significantly negative due to the tax issues surrounding the units. I don't believe that Linn's unsecured debt is a bargain at current levels either. There are some calculations to work out for the division of assets between Berry and Linn, but overall it would take the higher end of the $4.5 billion to $5 billion valuation range for the unsecured notes to potentially see some upside from current prices. I am staying out of the bonds for now.
Disclosure: I am/we are short LINE.
Quite perplexed as to how LINE and EXXI are trading so high when BK has pretty much been a foregone conclusion, meanwhile stocks like SandRidge Energy (SDOC) linger in the .05-.06 area with no confirmation of BK from the company
Gone below Tuesdays and Thursdays support level...tomorrow will reach down to 52-week low
Not really the way it works, but ok
Hope ya feel good about yourself
In bankruptcy protection three things can happen 1) shareholders lose everything 2) the price goes to a few pennies 3) reverse split and thus you're almost totally screwed
Revisiting the 20s by tomorrow evening.
Nah chap 11 commons aren't wiped
LINE just playing hardball to get creditors to renegotiate IMO
I'm holding for gains
LINE$
If bk happens you lose all plus shareholders have to pay some kind of tax....what the heck is that all about
Well it also states the investors if agreed will get one Lnco share for one Line share
Looks dead
LINE looks worse than dead. Apparently, there is some talk that instead of the shares just being worthless with a Chapter 11 filings, there could even be a tax liability triggered.
The debt exchange just looks like the high series of debt rearranging the order they will be in for the Chapter 11 filing that will probably happen within 90 days.
Louis J. Desy Jr.
Chapter 11 is they dont wipe out comon shareholders we stand to make a lot of money after restructuring.
Good example general growth properties tbey restructured comon saved and after a year went to 15 bucks a share and now 28 bucks
Atkins was behind the sucsessfull restructuring.
Buy out or meger possible.
Gl to all
Merger or buyout possible?
Linn Energy Reaches Settlement That Likely Includes Bankruptcy Filing
1:39 pm ET April 6, 2016 (Dow Jones) Print
By Stephanie Gleason
Linn Energy LLC (LINE) has reached a settlement with bondholders that likely will result in the oil and gas producer seeking bankruptcy protection to complete its restructuring during the next three months.
The company said Tuesday that it had reached an agreement with a majority of a group of bondholders, curing a default under those bonds. Under the agreement, the bondholders and Linn have agreed to resume negotiations on the terms of a debt-restructuring plan, likely to be executed through a chapter 11 bankruptcy filing.
Under the agreement, if no deal is reached before Linn files for bankruptcy, the bondholders have agreed to support Linn's request for bankruptcy-court approval of a plan that includes replacing their bonds with $1 billion in new bonds and releases certain collateral securing the current bonds.
This agreement with bondholders expires in 91 days unless Linn files for bankruptcy in that time.
These bondholders hold $1 billion worth of secured, second-lien notes that mature in 2020 and have a 12% interest rate. This group in November agreed to tender various amounts of other bonds, maturing between 2019 and 2021 and totaling $2 billion, for this new debt. On Feb. 18, Linn declined to deliver certain collateral, entering a 45-day grace period with bondholders. The company defaulted at the end of that grace period, and this settlement cures the default that could have resulted from this decision.
The company has said previously that a bankruptcy filing appears to be "unavoidable" and had hired financial and legal advisers.
Linn Energy is taxed as a master limited partnership, or MLP, rather than a corporation, a popular arrangement among energy companies when oil prices were soaring. But that structure could trigger a tax hit for investors when the company restructures.
Linn's MLP status allowed income to flow straight through to investors without the Internal Revenue Service taking a cut at the corporate level, allowing Linn to distribute billions of dollars of cash to investors. But now, investors with potentially worthless shares--or units, as they are known--may owe taxes on debt that is forgiven in a bankruptcy.
As distress has spread through the oil and gas industry, which has been crippled by persistently low prices, many are watching Linn's attempt to restructure and resolve issues related to this MLP structure.
Late last month, LinnCo LLC (LNCO)--a separate publicly traded company created to "enhance Linn Energy's ability to raise additional equity capital"--launched an exchange offer that allows the holders of Linn Energy units to swap the units for one share of LinnCo. The company said that the offer was designed to "permit holders of LINN units to maintain their economic interest in LINN through LinnCo, an entity that is taxed as a corporation rather than a partnership, which may allow LINN unitholders to avoid future allocations of taxable income and loss, including cancellation of debt income, that could result from future debt restructurings or other strategic transactions by LINN."
The Houston-based company focuses its exploration and production efforts throughout the U.S.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Stephanie Gleason at stephanie.gleason@wsj.com
(END) Dow Jones Newswires
April 06, 2016 13:39 ET (17:39 GMT)
Good thing you didn't. Psyche
Yep, get past .40 and it goessssssssssss
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