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G20 strikes trillion-dollar crisis deal
http://www.reuters.com/article/topNews/idUSTRE5314RX20090402
G20 strikes trillion-dollar crisis plan
http://www.reuters.com/article/topNews/idUSTRE5314RX20090402
"The G20 asked the IMF to bring forward sales from its gold reserves, raising funds to help the poorest countries, Brown said. And it agreed a trade finance package worth $250 billion over two years to support global trade flows, which have shrunk under the impact of the credit crunch."
GOLD -- 901.40 -27.00...890 support held so far.
AUY -- LOD
G20 -- The final agreement, expected about 10:30 a.m. Eastern time, will likely leave the amount and timing of fiscal stimulus measures to each nation.
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/02/AR2009040201391.html?hpid=topnews
EPRL -- Looking for news around April 3 regarding forbearance agreement or default.
FAS - Pre-Market: 6.69 +0.75
LOL.....Yes, IMO it's a lotto, Pure speculation play at this point. 1/2 a Billion in debt as of December 31, 2008 and counting. Hopefully they can negotiate a forbearance agreement or waiver with the Lenders. If so BOOM!!!!! If not BK or chopping block or buyer??? Guess we'll know by April 3? What's your definition of lotto play?
..................................................................................................................................................
The Company does not currently have sufficient cash resources to repay the borrowing base deficiency by April 3, 2009. If the Company is unable to successfully negotiate a forbearance agreement, obtain a waiver of compliance or cure the borrowing base deficiency, an event of default under the Credit Agreement will occur. An event of default under the Credit Agreement permits the Administrative Agent or the Lenders holding more than 50% of the commitments under the Credit Agreement to accelerate repayment of all amounts due and to terminate the commitments thereunder. The Company currently has $83 million drawn under the Credit Agreement. Any event of default which results in such acceleration under the Credit Agreement would also result in an event of default under the Company’s $450 million principal amount of senior unsecured notes. The Company does not have sufficient cash resources to repay these amounts if the Lenders accelerate their obligations under the Credit Agreement. If the Company is unable to successfully negotiate a forbearance agreement or waiver with the Lenders, or if the Lenders accelerate their obligations under the Credit Agreement, the Company may be forced to voluntarily seek bankruptcy protection.
On March 24, 2008 the Company received an order (the “Order”) from the Minerals Management Service (the “MMS”), which is part of the United States Department of the Interior. As previously disclosed in its Current Report on Form 8-K filed December 31, 2008, the Company had agreed with the MMS to provide additional supplemental bonds or other acceptable security to the MMS related to the Company’s plugging and abandonment liability in the aggregate amount of $36.1 million. Under the terms of that agreement, the Company was obligated to provide to the MMS no later than March 27, 2009, cash or other financial support in the amount of $16.7 million. During discussions between the Company and the MMS regarding this obligation, the Company advised MMS that it would not have the ability to meet its March 27 obligation, following which the MMS issued the Order.
Under the Order, the MMS has demanded that the Company provide to the MMS bonds or other acceptable security in the aggregate amount of $34.7 million to cover obligations associated with all of its properties in the Gulf of Mexico, with the first such installment of $1.2 million due no later than March 31, 2009, an additional installment of $1.2 million due no later than June 30, 2009 and the remaining $32.3 million due no later than July 31, 2009. The Order also requires the Company to present a plan to the MMS by May 1, 2009, detailing how the Company plans to comply with the Order, and to immediately shut-in production from all of its wells and facilities located in South Pass Blocks 27 and 28 in the federal portion of the Company’s East Bay field, while properly maintaining these facilities, wells and personnel. The production from these wells and properties that the Company is required to shut-in pursuant to the Order constituted less than 5% of the Company’s average daily production as of March 27, 2009. The shut-in will remain effective until the Company complies with all requests of the MMS set forth in the Order. The Company has completed its shut-in of production from these wells and facilities. The Company has also made the $1.2 million payment that was due to the MMS no later than March 31, 2009.
http://pinksheets.com/edgar/GetFilingHtml?FilingID=6510431
"Try reading a little history on the company and doing proper DD"
Perhaps you should take your own advise!!!...LOL
Katrina was 2005....LMAO!
"2008 was a shambles for EPL because of the after effects that hurricane Katrina had on them. Now as of a couple of months ago production levels have come back to pre-Katrina levels. "...Really.....lol
Production for the year ended December 31, 2008 totaled approximately 4.8 million Boe, as compared to 8.8 million Boe for the year ended December 31, 2007.
At December 31, 2008, our total debt was $497.5 million, which included $43.0 million of borrowings during the fourth quarter under our bank credit facility. These borrowings, which were continuing to occur during the first quarter 2009, have been necessary due to production volumes being severely curtailed as we awaited repairs to third party pipelines damaged by the 2008 hurricanes.
http://pinksheets.com/edgar/GetFilingHtml?FilingID=6486170
Our business was adversely impacted to a significant extent in 2008 as a result of a number of negative influences and factors, including:
• hurricanes in August and September of 2008 damaged third-party production pipelines, causing us to shut-in a significant amount of our production from September 2008 through January 2009;
• oil and natural gas prices declined in the fourth quarter of 2008 to the lowest levels since 2001 and have remained at low levels for much of the first quarter of 2009;
• the worldwide credit and capital markets collapsed in 2008 and the availability of debt and equity financing became significantly more scarce, thus reducing financial flexibility for most companies, including us; and
• the Minerals Management Service (“MMS”) rejected our request for waiver of supplemental bonding requirements for the decommissioning of certain of our federal offshore properties, resulting in the requirement for us to provide cash or other financial support totaling $47.3 million, $12.5 million of which was provided as of December 31, 2008, $16.7 million of which is due by March 27, 2009 (which date is the end of a 30-day grace period), and the remaining $18.1 million of which is payable in equal quarterly amounts of $1.2 million beginning March 31, 2009. We are in a continuing dialogue with the MMS concerning this matter. If we do not resolve this matter successfully, we could be forced to shut in a portion of our production.
http://pinksheets.com/edgar/GetFilingHtml?FilingID=6486170
New York Fed to Push Banks to Open Credit Clearing to Clients
Beginning of the End of this Crisis???
April 1 (Bloomberg) -- Federal Reserve Bank of New York officials will today urge Wall Street banks to offer hedge funds and other clients access to clearinghouses that protect against losses in the $28 trillion credit-default swaps market.
JPMorgan Chase & Co., Deutsche Bank AG and Goldman Sachs Group Inc. are among nine banks that last month began using Intercontinental Exchange Inc.’s New York-based clearinghouse for the credit derivatives. Bankers are meeting in New York with Fed officials today to discuss the timing of expanded market access, according to a person familiar with the agenda.
The push follows the collapse of Lehman Brothers Holdings Inc., one of the largest credit-swaps dealers, and the U.S. rescue of American International Group Inc. after it made bad bets using credit-default swaps. The privately traded, unregulated contracts complicated government efforts to assess systemic financial risk because no one knew how interconnected the banks had become.
“I support the Federal Reserve wholly in this,” New York Insurance Superintendent Eric Dinallo said in an interview yesterday. “When they urge it, it comes close to a requirement” because the Fed sets capital requirements for banks to get what it wants.
Since March 13, $50 billion of credit-default swaps have been cleared by Intercontinental in a system that is open only to the nine banks. Credit-default swap clearinghouses created by Intercontinental competitors CME Group Inc. and NYSE Euronext haven’t attracted any customers from the banks.
Buyer, Seller
Capitalized by its members, a clearinghouse acts as the buyer to every seller and seller to every buyer, reducing the default risk between parties to a trade. It also allows regulators to assess market positions and prices.
The Fed isn’t necessarily demanding that the clearinghouses grant broader access to funds to become full members. Dealers and Intercontinental Exchange already plan a framework in which funds would be granted protections against counterparty default, such as segregated collateral accounts. The lack of segregated accounts led to losses for funds that had posted excess collateral with Lehman after the securities firm filed for bankruptcy protection.
“Every credit-default swap should be on some clearinghouse or exchange or get an exemption so we know where all this is,” Dinallo said.
Fifth Meeting
Today marks the fifth meeting between the Fed and the banks since Timothy Geithner, then the New York Fed’s president and now the Treasury Secretary, almost four years ago started pushing dealers to clean up trading in the privately negotiated market, in which outstanding contracts ballooned about 100-fold to as much as $62 trillion at the end of 2007.
Fed officials want to promote a system for credit derivatives clearing modeled on how futures exchanges are organized. There, a bank acts on behalf of its client to make a trade backed by a clearinghouse so the hedge fund is exposed to the bank and the bank is exposed to the clearinghouse.
The system also has bankruptcy protections built in so that if the bank goes into default, its client funds, which are segregated, are protected and not lumped in with other creditors.
At this point, Fed officials aren’t convinced that bankruptcy protections are strong enough and will ask the banks to clarify their positions so regulators can map out how the clearinghouse structure develops.
To contact the reporters on this story: Matthew Leising in New York at mleising@bloomberg.net; Shannon D. Harrington in New York at sharrington6@bloomberg.net
Last Updated: April 1, 2009 00:00 EDT
http://www.bloomberg.com/apps/news?pid=20601103&sid=afSgjzTRIBxM&refer=us
New York Fed to Push Banks to Open Credit Clearing to Clients
Beginning of the End of this Crisis?
April 1 (Bloomberg) -- Federal Reserve Bank of New York officials will today urge Wall Street banks to offer hedge funds and other clients access to clearinghouses that protect against losses in the $28 trillion credit-default swaps market.
JPMorgan Chase & Co., Deutsche Bank AG and Goldman Sachs Group Inc. are among nine banks that last month began using Intercontinental Exchange Inc.’s New York-based clearinghouse for the credit derivatives. Bankers are meeting in New York with Fed officials today to discuss the timing of expanded market access, according to a person familiar with the agenda.
The push follows the collapse of Lehman Brothers Holdings Inc., one of the largest credit-swaps dealers, and the U.S. rescue of American International Group Inc. after it made bad bets using credit-default swaps. The privately traded, unregulated contracts complicated government efforts to assess systemic financial risk because no one knew how interconnected the banks had become.
“I support the Federal Reserve wholly in this,” New York Insurance Superintendent Eric Dinallo said in an interview yesterday. “When they urge it, it comes close to a requirement” because the Fed sets capital requirements for banks to get what it wants.
Since March 13, $50 billion of credit-default swaps have been cleared by Intercontinental in a system that is open only to the nine banks. Credit-default swap clearinghouses created by Intercontinental competitors CME Group Inc. and NYSE Euronext haven’t attracted any customers from the banks.
Buyer, Seller
Capitalized by its members, a clearinghouse acts as the buyer to every seller and seller to every buyer, reducing the default risk between parties to a trade. It also allows regulators to assess market positions and prices.
The Fed isn’t necessarily demanding that the clearinghouses grant broader access to funds to become full members. Dealers and Intercontinental Exchange already plan a framework in which funds would be granted protections against counterparty default, such as segregated collateral accounts. The lack of segregated accounts led to losses for funds that had posted excess collateral with Lehman after the securities firm filed for bankruptcy protection.
“Every credit-default swap should be on some clearinghouse or exchange or get an exemption so we know where all this is,” Dinallo said.
Fifth Meeting
Today marks the fifth meeting between the Fed and the banks since Timothy Geithner, then the New York Fed’s president and now the Treasury Secretary, almost four years ago started pushing dealers to clean up trading in the privately negotiated market, in which outstanding contracts ballooned about 100-fold to as much as $62 trillion at the end of 2007.
Fed officials want to promote a system for credit derivatives clearing modeled on how futures exchanges are organized. There, a bank acts on behalf of its client to make a trade backed by a clearinghouse so the hedge fund is exposed to the bank and the bank is exposed to the clearinghouse.
The system also has bankruptcy protections built in so that if the bank goes into default, its client funds, which are segregated, are protected and not lumped in with other creditors.
At this point, Fed officials aren’t convinced that bankruptcy protections are strong enough and will ask the banks to clarify their positions so regulators can map out how the clearinghouse structure develops.
To contact the reporters on this story: Matthew Leising in New York at mleising@bloomberg.net; Shannon D. Harrington in New York at sharrington6@bloomberg.net
Last Updated: April 1, 2009 00:00 EDT
http://www.bloomberg.com/apps/news?pid=20601103&sid=afSgjzTRIBxM&refer=us
Nice! G20 holds hands and sings cumbaya! No Worries! LOL
Good for you! Suspect some of the current price of fins is built in, M2M foregone conclusion imo. It's going to be interesting!
Yep...FAS -- After Hours: 6.05 +0.11 Fin PPS Already built in Sell the news on Thur?
Nothing like building investor confidence! LOL Geezzzz
Oh well......hope it eases things.
THX passed your post on a couple of boards.
FASB Caves on Mark-to-Market
New York (April 1, 2009)
By Michael Cohn, Editor-in-Chief, WebCPA
http://www.webcpa.com/article......;print=yes
stuffit
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36737643
FASB Caves on Mark-to-Market
Tagged with: Mark-to-Market
FASB Caves on Mark-to-Market
New York (April 1, 2009)
By Michael Cohn, Editor-in-Chief, WebCPA
|
The Financial Accounting Standards Board has bowed to pressure from lawmakers and banking interests and put forward a proposal to relax fair value standards.
The board has formally scheduled a vote for Thursday on the proposed revisions to the standards, but the outcome seems to be a foregone conclusion at this point.
After a bruising hearing last month before a House subcommittee, FASB Chairman Robert Herz was sternly ordered by one after another grandstanding congressman to meet with his fellow board members and come up with an acceptable solution forthwith (see Congress Pressures FASB to Revise Mark-to-Market). He was given three weeks to do the job and warned that he would be called again before the committee to face another round of tongue-lashing if he didn’t obey.
Herz and his fellow board members quickly responded with a pair of proposed standards that would substantially adjust the rules on fair value accounting to please the banks. Financial institutions want the ability to avoid further steep write-downs on impaired assets such as mortgage-backed securities and the exotic but hard-to-sell financial instruments clogging their balance sheets.
They do have a point that the write-downs are producing a procyclical effect that may well be exacerbating the financial crisis. On the other hand, a lot of those exotic assets were little more than an accounting fiction and part of a larger speculative bubble. Allowing them to be overvalued once again via cash flow models would give new meaning to the phrase “creative accounting.”
However, not all the board members were in harmony at FASB’s meeting before the proposals were sent forth into the world for comment. Two of the five members, Thomas Linsmeier and Marc Siegel, voted against issuing the proposed standards. The other three — Herz, Leslie Seidman and Lawrence Smith — voted to issue the proposals. The final vote this Thursday should spark a lively debate, so you may want to tune in to the webcast on the FASB Web site.
Investors have good reason to be worried about the financial statements the banks will be issuing as a result of the changes. Banks will be able to start keeping the “other than temporary impairments” on their troubled assets out of net income and reclaim billions of dollars they had previously written down.
Jonathan Weil of Bloomberg.com recommended in a recent piece that investors should instead start paying more attention to the comprehensive income figures that banks report rather than net income. Fitch Ratings in a report published this week wants to see more information in the disclosures that go along with the financial statements.
However, the banking interests are already pushing for further flexibility in a comment letter to FASB on the proposed standards, including which quarter they can recognize the suddenly inflated assets, with the American Bankers Association listing a series of short-term and long-term fixes they want.
Ironically the changes will come soon after Treasury Secretary Tim Geithner announced his plan for removing toxic assets from the banks’ books by setting up a Public-Private Investment Program to encourage private investors to start buying the toxic assets once again with some $500 billion to $1 trillion of reassurance from Uncle Sam. The suspiciously inflated assets are going to be a lot pricier for private investors to buy and a whole lot more dubious in value.
Meanwhile, the International Accounting Standards Board has also been under pressure to revise its fair value accounting standards and is soliciting feedback abroad on whether to adopt FASB’s fair value compromises. The IASB has already been accused of succumbing to political pressure from the European Commission last year and amending its standards for the classification of banks’ assets.
The new SEC Chairman, Mary Schapiro, recently expressed her reservations about the IASB’s independence during the confirmation process. But now FASB too is demonstrating that there are limitations on its independence. The banks evidently have Congress behind them, despite the outcry over the misspent $700 billion in bailout money and millions of dollars in bonuses awarded to failed investment bankers and insurance company executives who oversold credit default swaps.
Meanwhile, accountants will be left to wonder if their representatives in Washington may not be up to the task of standing up to the vested interests whose reckless behavior led to the financial crisis in the first place.
http://www.webcpa.com/article......;print=yes
stuffit
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36737643
Yes it is, from the 10-K? Stock Looks interesting...just a little wary of all the share you guys have... being dumped on my head. lol Maybe penny wise and pound foolish? It's a lotto play for sure.
Not sure of the whole story here but they where making $$$$. Lott's of $$$ making assets.
Amendment to Term Loan , or 10-K coming...? Notification of Late Filing on Form 12b-25 today for a 15-day extension
SEATTLE, March 18, 2009
NCEY - +641.67% lol..-e-
Yep, for those that got in on the .08s. lol I'm just watching at this point.
GL
Yep...suspect traders in for the day, just found it and watching. THX
Put her on watch, GL
Interesting read.... how things change
In June 2006, Bachmann targeted Stone Energy of Lafayette for buyout. But before the $2.2 billion deal could be struck, Woodside Petroleum of Australia attempted a hostile takeover of Energy Partners. Its $833 million offer would have paid EPL shareholders a 25 percent premium.
While signs point to the demise of one of New Orleans’ last independent E&P ventures, Energy Partners could be resurrected under another flag as other companies are likely evaluating EPL’s leases and reserves.
“It has a very good geological team that did a great job of finding reserves that the majors have passed by,” Ricchiuti said.
http://www.neworleanscitybusiness.com/viewStory.cfm?recID=32958
ERPL -- just delisted from NYSE, poping off low...on watch.
Interesting read.... how things change
In June 2006, Bachmann targeted Stone Energy of Lafayette for buyout. But before the $2.2 billion deal could be struck, Woodside Petroleum of Australia attempted a hostile takeover of Energy Partners. Its $833 million offer would have paid EPL shareholders a 25 percent premium.
While signs point to the demise of one of New Orleans’ last independent E&P ventures, Energy Partners could be resurrected under another flag as other companies are likely evaluating EPL’s leases and reserves.
“It has a very good geological team that did a great job of finding reserves that the majors have passed by,” Ricchiuti said.
http://www.neworleanscitybusiness.com/viewStory.cfm?recID=32958
ERPL -- just delisted from NYSE, poping off low...on watch.
Interesting read.... how things change
In June 2006, Bachmann targeted Stone Energy of Lafayette for buyout. But before the $2.2 billion deal could be struck, Woodside Petroleum of Australia attempted a hostile takeover of Energy Partners. Its $833 million offer would have paid EPL shareholders a 25 percent premium.
While signs point to the demise of one of New Orleans’ last independent E&P ventures, Energy Partners could be resurrected under another flag as other companies are likely evaluating EPL’s leases and reserves.
“It has a very good geological team that did a great job of finding reserves that the majors have passed by,” Ricchiuti said.
http://www.neworleanscitybusiness.com/viewStory.cfm?recID=32958
Na...bunch of media hype bs. Special interest groups ranting for the cameras and attention....paid? When you see average Joe's with hammers in their hand, time to look out.
Check out the pix on a couple of pages. Bunch of posers congratulating themselves over cappuccino after the march imo.
http://images.google.com/images?hl=en&ei=rIzTSbiCFcWhngf9_ay-Bw&resnum=0&q=G20%20protesters&um=1&ie=UTF-8&sa=N&tab=wi
Seems like it a successful experiment to me. Africa has always been a testing ground, not that the U.S hasn't. These megalomaniac's are going into the business of population control.
"Monsanto says they just made a mistake in the laboratory, however we say that biotechnology is a failure.You cannot make a 'mistake' with three different varieties of corn.'
http://www.digitaljournal.com/article/270101
CNO - 0.92 +0.24 +35.29%
Well that makes 2 of us that forgot. lol...Plus we're entering Tax Season! Guessing a Non Event this year........?
What? You Welcome. LOL....sure...OK, matter of interpretation. GPM is not GM stock but whatever. Nice job with the updates btw!
GENERAL MTRS DEB C(NYSE: GPM)
Posted by: citrus Date: Tuesday, March 31, 2009 3:40:23 PM
In reply to: None Post # of 131764
GM - General Motors prefers out-of-court solution that would satisfy task force, but is preparing to be ready to file bankruptcy by June 1, source says - Reuters (2.04 -0.66)
Posted by: Arrow335 Date: Tuesday, March 31, 2009 3:46:46 PM
In reply to: citrus who wrote msg# 131737 Post # of 131778
Good luck finding a buyer for this crap. GPM - 2.68 -0.22 -7.48%
YW...CNO .92 finish...weeeeeee
GL
UGH...merely commenting that BOND/Debt Holders along with share holders are in trouble. Geeeezzzz
profit taking? lol G20 Nerve's ?
Good luck finding a buyer for this crap. GPM - 2.68 -0.22 -7.48%
Only 4% short as of 3/13. Think they would of covered at .02. Pure Spec run imo. Somebody knows something or a whale or group creating a spec run? A Real Co that's for sure.
http://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=SPSN&selected=SPSN
Nice chart! Yes...break .92 could signal a full go. Although G20 outcome could throw Water on everything imo.
GL
LOVE your Glass work BTW. Something I would be interested in learning.
It's a dreamer lotto play, could go to .50 or .05. BP money...? It's not allowed on the board anyway.
GL
LOL...he's been bashing about everything. Short SOB lol.
It's going to run alright, Run away with your $$$ if your not careful.
Yep...I's watching...it. Soros predicting another 30% drop in commercial prop fwiw.
SRS...bounce off -- 48.00. after Happy Talk. lol