Back in 2012 I was paid 1 dividend and the trustee is seeking return of the dividend payment. They sent me a letter offering a settlement of 1/2 of the dividend received. I did not respond. They should be filing motions soon regarding anyone who did accept the settlement.

I too would appreciate knowing about this. Btw, where did you get the tip-off as to this occurring? What if anything re. the situation with the company and the Preferreds in particular else is new? -Thanks, S

Has anyone received a letter from the Law firm of Cooper and Scully regarding a settlement offer for dividends paid to you on the preferred stock?

$ATPGQ - Suspension of Trading

http://www.otcmarkets.com/stock/ATPGQ/news/Suspension-of-Trading?id=86505&b=y

big share reversal and falling again interesting for sure.

It works like so. Insiders add more debt so as to buy low and sell high cause you know the asset has depreciated to were there is no value due to lost earnings cause of assets that are no longer productive.


A pipe at the bottom of the sea with nothing running through it is worth little to anyone until something runs through it again so they turn of the tap add more debt that came from there own pockets after loaning the stock to the company to sell and then creating a debt as well as lowering the strike price S1 but they don't stop there they then forward split the shares again lowering the strike price were they end up selling billions and billions of shares giving them selves what they like to call back wages due and again lowing the strike price and sell billions of shares on the debt they are putting into the business.


Now because debt payment comes before equity payment they walk of with the cheap assets and then turn around and start running oil back through them with further servicing of the wells in question.


This can be done also by retiring equipment ect. The business are not healthy when you don't have the capital to replace worn out equipment or when you can turn off a tap.


Sure you have legislation that says the court can go back and collect should the equipment or service that can create a profit but that is good for five years and that is not long enough cause after five years the courts can't do a thing should they find use for the asset mentioned.


Now someone could come along and buy the assets from the courts but heck if you don't know what is happening or have the funds to do so chances are slim you will get anything back in return from a sale of the asset in question cause who knows what kind of shape it will be in.


Control is what you need and that is taking what ever up side you see and grab it when you can.

Conversion to chapter 11->7?

What is to be interpreted from this?
(besides the obvious)


CHAPTER 11
ORDER EXPANDING CRO AUTHORITY
James Latimer’s role as Chief Restructuring Office
r is expanded by the following
sentence. Mr. Latimer is authorized to (i) propose
a plan and to supervise the drafting of a
disclosure statement on behalf of the debtor-in-pos
session; and (ii) direct counsel to file a motion
to convert this case to a case under chapter 7.


The CRO is going to put forward his request for a chapter 7 liquidation. Commons wait at the bottom for what if anything is left?

http://www.vocm.com/newsarticle.asp?mn=2&id=42603&latest=1

Who will be selling on Monday. It has not been said who the operator is but we know they have subsiduary companies and why has the stock fell so badly along with revenues it only makes sense to me what has taken place here that they are involved someway maybe in this maybe as an consultant who knows there are few who supply this kind of service in the world as ATP does.

http://www.vocm.com/newsarticle.asp?mn=2&id=42603&latest=1

Who will be selling on Monday. It has not been said who the operator is but we know they have subsiduary companies and why has the stock fell so badly along with revenues it only makes sense to me what has taken place here that they are involved someway maybe in this maybe as an consultant who knows there are few who supply this kind of service in the world as ATP does.

http://www.vocm.com/newsarticle.asp?mn=2&id=42603&latest=1

Who will be selling on Monday. It has not been said who the operator is but we know they have subsiduary companies and why has the stock fell so badly along with revenues it only makes sense to me what has taken place here that they are involved someway maybe in this maybe as an consultant who knows there are few who supply this kind of service in the world as ATP does.

I was going to add also that most hedge funds charge huge fees to do this for a customer were if a customer did this for him self he would be twenty years ahead of the curve if you like in were he would be using a hedge fund due to there fees that for the most part are hidden from the customer should the customer not read the financials that for the most part are private to shareholders of the fund if less then five shareholders.

http://www.investopedia.com/articles/optioninvestor/10/derivatives-101.asp


For the ones who doesn't know what I was revering too the above will help to explain. The thing is not many understand that you can take your own position in the derivative and short the stock to only get it back again for the gain of the short and still hold the stock. This is often a method insiders use to short there own stock with out reporting the sale if you control insiders borrowed shares that in turn becomes revenue that can be used to underwrite more stock as well as collateral to borrow more capital to underwrite even more shares.


The initial investors are in fact the debt holders as well because there becomes billions of shares available to be bought there is also dilution in the way of fractional shares for the ones who by at the bottom who buy a crazy amount of cheap shares to the ones who bought higher and didn't buy but used derivatives to short end up the big winners in the end and often in a ten year period a $1000 can turn into a million if they know what they are doing.

Great abitrage the other day with ATPAQ and ATPGQ. You have to like a no risk play when it comes your way.


The way it works is you short the higher of the two and go long on the other to capitalize on the spread. Shorting in this case means selling the stock short and going long on the other. Long is the writing of a put on one and taking that call with the other in other wise your buying your own put that you wrote this puts downward pressure on the stock that you have shorted by selling and going long on the other.

It is risky but if you can take a good spread for the risk she can pay off the down side is if the thing folds before you execute the trade the second date I like to call it on the derivative then you out of luck not something I like to do on stocks like this unless you see a good rise that will bring in more interested parties to play


Good luck in the new years and hope you trades are profitable Derivatives can often become a good crystal ball as to were the stock is going in the future.

A couple of months off, but never the less, good call I :)

This should be sub 10C by Friday.

Dollar dollars bill yo!

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.

Many filings and mumble jumble which is not something I'm profient at decifering/understanding. Still I would like to know if there could be, or will be, any value in these ATPGQ preferreds after all is said and done? Also equally as important how to determine what that valuation is (other than the $0.60 cents currently being quoted on the PS)? -Thanks, SR

Caught my eye with that name, but I'm glad I didn't buy into anything before. However, this is one restructuring I thought I would at least look at some. Too tied up in banks these days!

http://www.siliconinvestor.com/readmsg.aspx?msgid=28652754

http://boards.fool.com/deepwater-asset-sales-30437501.aspx?sort=postdate

Other boards.

OMG

http://finance.groups.yahoo.com/group/Surfcitytownhome/message/64

Here is one.

OMG

OOPs I will post the links tomorrow as they are on my home computer.

OMG

Thanks Chevy and seismic,

Interesting Chevy's posting says 1,500,000 shares preferred and Seismic looks like over 3 million. I am sure one of you is correct...LOL

I sent e-mails to the EC members and they mostly confidentiality agreemented up. There were two members that suggested that the Clipper well could be a game changer.

I also found a couple of message boards that I will list below. On one board there was talk of a Blue or Blue water pipeline that the work is continueing on as we speak.

On the fence but looking to buy some preferred soon.

OMG

From the last 10K filed with the SEC, page 30.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
“Our authorized capital stock consists of 100,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. There were 52,051,422 shares of common stock and 3,105,000 shares of 8% convertible perpetual preferred stock outstanding as of March 2, 2012. “

Also note from the same filing;

“The number of holders of our common stock and 8% convertible perpetual preferred stock as of March 8, 2012 is 12,321 and 556, respectively.”

Link to the Preferred Share PROSPECTUS

http://www.sec.gov/Archives/edgar/data/1123647/000119312511167908/d424b5.htm

How many preferred shares are there? Any down side to investing in preferred.

TIA

OMG

Stephen S Taylor beneficially owns 3,307,251 shares (12/11/12)

Controls 6.34 percent.

Consists of 307,085 shares of the Issuer’s Common Stock owned by Stephen S. Taylor individually and 2,493,500 shares of the Issuer’s Common Stock and 112,480 shares of Series B Preferred Stock, which are convertible into 506,666 shares of the Issuer’s Common Stock, owned by Taylor International Fund, Ltd. Mr. Taylor is the Chairman of Taylor Asset Management Inc., which is the Investment Manager of Taylor International Fund, Ltd.

Mr. Taylor acquired 307,085 shares of the Issuer’s Common Stock for total consideration of $34,950.77. The source of the funds was his personal resources. The average cost paid was $.1138 per share.

Taylor Asset Management, Inc. (“TAM”) acquired for Taylor International Fund, Ltd. (“TIF”) 2,493,500 shares of the Issuer’s Common Stock for total consideration of $273,553.75. The average cost paid was $.1097 per share.

Taylor Asset Management, Inc. (“TAM”) acquired for Taylor International Fund, Ltd. (“TIF”) 112,480 shares of the Issuer’s Preferred B Stock for total consideration of $126,069.79. The source of the funds was from Mr. Taylor and other investors not named herein. The average cost paid was $1.12 per share.

Taylor International Fund began to purchase and build up a sizeable position based on the Fund’s belief that there is substantial equity remaining in the Issuer that should be realized by shareholders after an orderly Chapter 11 process is allowed to run its course.

http://www.sec.gov/Archives/edgar/data/1109389/000114420412069102/v330764_sc13d.htm

quote ( Sorry Preferred shareholders...I think you're way outside looking in under any CH 7 scenerio. )
That has been my feeling all along on the risk side of this issue. I just today bought some bonds at $11.30. I was surprised to see a close at $9.90. This has to be a screaming buy under $10 as many hedges are loaded up on the bonds, and will do all they can to get a nice profit.

As it stands today if they had to convert to chapter 7. wouldnt that bring alot of value to the bondholders currently they are trading 117

i just got my feet wet on the notes today

Thanks in advance

I hadn't but EI called me late last night to tell me about it. I've been awol from Ihub for the most part the past week or 2 as other commitments and some family health isuues have taken priority.

In a nutshell the debtor hasn't lived up to the agreements in the DIP financing so the lender wants the agreement amended. I see a heavy emphasis on what happens (and when it will happen) should the Debtor default on these new terms.

Events of Default. Add as Events of Default (i) failure to achieve commercial operation of the MC 942 S-Sand by January 2, 2013, and (ii) failure to achieve commercial operation of the Clipper Project by March 1, 2013.

The DIP lender has the power to force a sell off of the business if targets aren't met.

This is serious. It's fish or cut bait time for management.

http://www.kccllc.net/documents/1236187/1236187121126000000000007.pdf

have you read this?

thanks! romang

Thanks 56Chevy for your two responses.
Many years ago my friend had a cherry 56 Chevy, green,and white. One day he woke up,and someone stole it. Your handle reminded me of that sad event.

One last thought-

If there are any strong arguments (aside from the Clipper Wells Project) for the legacy shareholders to be included in a Plan of Reorganization (POR) would be the debtors' Net Operating Losses (NOL's).

I haven't seen the actual official NOL number but the company said they've been losing about $1.1 Million dollars a day for the past 3 years. If you do the back of a napkin math that means there must be approx $1 Billion in NOL's.

For any new potential owners that intend to make use of those NOL's it becomes legally imperative that the POR include the legacy shareholders. 50% retained legacy ownership rules apply.

The problem is you just never know how high on the list of priority those NOL's are to a potential new owner. You can't assume they'll do whatever it takes to keep them. In the minds of us retail investors it seems like a no-brainer and we have a hard time wrapping our minds around any reasons someone wouldn't want them but surprisingly its not uncommon for new owners to sacrifice them (or extremely limit how much they can be used) in order to gain a higher controlling interest over the company.

NOL's are the joker in the deck.

Sure. Clipper Wells is a bit of a gamble so naturally any added expenses that ends up a "bust" hurts all classes and diminishes the estate.

But what a diminished estate more than likely means come confirmation time is it will effect how the Bondholders are paid back. What does that mean? The first preference in recovery for bondholders in any BK is a 100% cash recovery. They want to be made whole and they'd like it in cold hard cash. period. But if that's not possible then it opens the options up to any number of possibilities such as they may have to accept a combination of cash + new shares...or maybe another possibility would be they renegotiate the terms of the bonds at a lower interest rate and extend the due date + some cash + new shares. *And last on their list of preferences would be exchanging their entire claim for shares of newco.

Any time you can climb up the "waterfall" in a BK you're gaining a higher level of safety & success. The higher...the better.

*Sometimes this last option is exactly what some groups intend to make happen. They want to take control of a company and we may have just such a group here in the ATPG BK.

The group filed a 2019...which doesn't mean conclusively they intend to "take control" ...but they are working together which usually means that's the intent if possible.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=80154610

Do you think the debt incurred with the Clipper Wells project will hurt the bond holders if the project is a bust ?
I'm more interested in a more safe play than holding equity.

Thanks chevy I will be waiting for this also the clipper wells. what would a guess be for when we would see details I remember something about 3rd quarter. :) thanks again

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.

has your views changed any on this since the equity commitie was appointed.. only pref shares I currently own

last time on wampq I got burned because the ec was appointed to late in the game

would be something if pref shares survived after the bk

thanks!

That's a tough call ROCKhard and it really depends on how much you understand about Chapter 11 corporate bankruptcy (BK).

Is there "value"? Right now today I would say no. But that could change.

As to your question "when" something may be resolved ATPG just filed for BK August 17th of this year...so based on the average length of a BK I think it's fair to say this won't be over until late 2013 ~ early 2014.

Since that's the case there isn't any rush to get in and I would encourage you to understand it better before you do.

Do you consider yourself a stock "trader" or a stock "investor"? There are entirely different considerations for each and that's the reason I ask.

Is there any value in these shares or will the end game holders be the ones holding the bag? From $100 bucks to a measly $1... boy, oh boy I sure hope there'll be something substancially more than what it's currently going for today. Any insight or thoughts as to what and when this might be?

It's official - Equity Committee is appointed in the ATPG Bankruptcy Case

NOTICE OF APPOINTMENT OF OFFICIAL COMMITTEE
OF EQUITY SECURITY HOLDERS

Source: KCCLLC Doc # 793

http://www.kccllc.net/atpog

http://www.kccllc.net/documents/1236187/1236187121107000000000003.pdf

It's official - Equity Committee is appointed in the ATPG Bankruptcy Case

NOTICE OF APPOINTMENT OF OFFICIAL COMMITTEE
OF EQUITY SECURITY HOLDERS

Source: KCCLLC Doc # 793

http://www.kccllc.net/atpog

http://www.kccllc.net/documents/1236187/1236187121107000000000003.pdf

:)

Hey how are you

could this be another wampq? or do you see no chance of recovery besided the bonds

or just maybe a runup then crash like wampq

Thanks

ATPG Court Doc Link

http://www.kccllc.net/Docket/SearchResults.asp?T=3323

ATP Oil & Gas Files for Bankruptcy Protection in Texas

Aug 17, 2012 2:02 PM PT

ATP Oil & Gas Corp. (ATPG) filed for bankruptcy in the face of falling production and a looming $89 million interest payment. The company arranged a $700 million revolving credit facility before making the filing.

The Chapter 11 petition listed $3.6 billion in assets and $3.5 billion in debt. The filing in U.S. Bankruptcy Court in the Southern District of Texas comes after Standard & Poor’s downgraded the company to CCC on Aug. 1, labeling it vulnerable to default.

The Houston-based oil and natural-gas firm has faced production delays as it tries to extract more oil from wells in the Gulf of Mexico. It has $1.5 billion of 11.875 percent notes due May 2015. In downgrading the firm’s credit rating, Standard & Poor’s said ATP won’t have money for the coupon payment on the notes and other planned spending unless it gets outside financing.

The company arranged financing from Credit Suisse Group AG, according to the court filing. ATP’s $89 million interest payment is due in November.

ATP’s stock closed at about 42 cents a share today, down about 98 percent since its peak at the end of October 2007.

Bluewater Industries LP and Nabors Offshore Corp. were listed as the company’s two largest unsecured creditors, according to court papers.

ATP’s $1.5 billion of 11.875 percent notes due May 2015 dropped to 29.4 cents on the dollar at 4:21 p.m. in New York, the lowest on record, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Bondholders’ claims rank ahead of equity investors and behind secured lenders in a bankruptcy.

The bankruptcy case is In re ATP Oil & Gas Corp., 12-36187, U.S. Bankruptcy Court, Southern District of Texas (Houston).

http://www.bloomberg.com/news/2012-08-17/atp-oil-gas-files-for-bankruptcy-protection-in-texas.html