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Just remember not to go long or you will get burned, like I got burned with SDOC.
SDOC did the same, made interest payments and then declared BK, while having more than 650 mil cash in the bank.
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities.
Dangerous play!
Did any institutions hold this stock?
You forgot to mention that commons are last in line get paid.
In reality the stock market is not about optimism or pessimism. I have a first hand experience in being optimistic about a particular ticker and then losing money that I could not afford to lose, so in my opinion it's best to trade a stock to the point that it's no longer tradable. It's just my opinion not an investment advice. Relying on ihub opinions can burn you, just like it burned me.
I had a position in another medical device company and some dreamers like you were thinking the same and that dream never came true.
If you read their 10k you will see that this company is competing with many other companies that are perusing the same technology with greater resources.
Yes that all you said is true but they are not the only company in this field.
This technology is important, but not that important to raise the PPS to $1 or above.
Is more dilution is coming?
Anyone interested in selling 1.5 mil shares @ .003?
XCO is the new money maker.
Thank you.
Do you know why XCO dipped today?
Why the dip?
A closer look at L2 shows this stocking is heading to no bid.
The gap between bid and ask is scary.
Scie will pickup pace once their 4th generation device is approved and sold in the US.
Huge volume difference between bid and ask.
Do you have a date?
10q is already out, which 10q you are talking about?
Low volume and moving south.
Yes something is better than nothing.
That 4% is close to .04/share not .20/share.
When is the next hearing?
I lost 19g on SDOC yesterday and it was borrowed money that I have to pay interest on top of my loss until the loan is paid off. We are still alive and we will make it back.
Our fair value estimate for Halcon Resources is unchanged at $0.05 per share after the company announced a major restructuring plan. We previously estimated that Halcon's enterprise value was worth less than its $2.9 billion debt load. Our $0.05 per share fair value merely reflected the assumed option value to shareholders of a strong resurgence in crude prices or a meaningful recapitalization (divestiture, joint venture, or a debt exchange, for example). The May 18 restructuring announcement confirms that, subject to approval by affected stakeholders, the firm will eliminate $1.8 billion in debt and $222 million in preferred equity through an accelerated prepackaged Chapter 11 bankruptcy filing. After incorporating these transactions, our cash flow model signals positive equity for the restructured firm to the tune of $120 million. However, much of the eliminated debt will be equitized during the restructuring process, and as a result current stockholders can claim only 4% of this $120 million entity ($0.04 per share). This does not include the additional dilutive impact of numerous warrants being granted to current creditors, but these have a 4-year term and are well out of the money currently, with strike prices translating to $1.33 billion in total equity (more than 10 times our $120 million estimate). Our valuation is further supported by the observation that 4% of the May 18 closing price of $0.97 per share is also $0.04.
Real value at 0.04/share!
At least halcon is giving something to the common equity.
Halcón Reaches Agreement in Principal with Stakeholders Regarding a Comprehensive Balance Sheet Restructuring
Source: GlobeNewswire Inc.
Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”) today announced the Company has reached an agreement in principal on terms of a plan to restructure its balance sheet (the “Restructuring Plan”) with select holders of its 13.0% 3rd Lien Notes due 2022 (“3L Notes”), its three tranches of senior unsecured notes comprised of its 9.75% Senior Notes due 2020, its 8.875% Senior Notes due 2021, and its 9.25% Senior Notes due 2022 (together, the “Unsecured Notes”), its 8.0% Convertible Note due 2020 (the “Convertible Note”) and its 5.75% Perpetual Convertible Preferred Stock (the “Preferred Equity”, and together with the 3L Notes, Unsecured Notes and Convertible Note, the “Affected Stakeholders”).
The Restructuring Plan, if implemented, will result in the elimination of approximately $1.8 billion of debt and approximately $222 million of Preferred Equity, and will reduce the Company’s ongoing annual interest burden by more than $200 million. As of May 18, 2016, holders representing a majority of the value outstanding in each class of Affected Stakeholders have indicated their willingness to support the Restructuring Plan. This agreement is subject to the negotiation and execution of certain definitive documentation, including a Restructuring Support Agreement (“RSA”) to be entered into with select Affected Stakeholders. The Company expects the RSA to be executed in the near term, but there is no assurance this will occur.
Under the Restructuring Plan, all Halcón debt junior in seniority to the Company’s existing 8.625% 2nd Lien Notes due 2020 and its 12% 2nd Lien Notes Due 2022 (“2L Notes”) will be eliminated, as will all of the Preferred Equity. The Restructuring Plan contemplates that the Affected Stakeholders will receive newly issued common shares in reorganized Halcón, warrants and/or cash in exchange for their existing securities. The table below summarizes the treatment of the Affected Stakeholders in addition to other stakeholders under the Restructuring Plan.
Stakeholder Treatment
Senior Secured Revolver - New or amended reserve based facility to be provided by existing lenders
2L Notes - Unaffected and reinstated
3L Notes - Fully equitized into 76.5% of the pro forma equity
- Receive $50.0 MM in cash plus accrued and unpaid interest through March 31, 2016
Unsecured Notes - Receive 15.5% of the pro forma equity
- Receive warrants for 4.0% of the pro forma equity (4 year term, $1.33 BN equity strike)
- Receive $37.6 MM in cash plus accrued and unpaid interest through May 15, 2016
Convertible Note - Receive 4.0% of the pro forma equity
- Receive $15.0 MM in cash
- Receive warrants for 1.0% of the pro forma equity (4 year term, $1.33 BN equity strike)
Preferred Equity - Receive $11.1 MM cash
Existing Common Equity - Receive 4.0% of the pro forma equity
Following the execution of the RSA, the Company plans to solicit the support of additional Affected Stakeholders for the Restructuring Plan. If certain voting thresholds are satisfied through the solicitation process, the Restructuring Plan will be executed through an accelerated pre-packaged Chapter 11 bankruptcy filing. The proposed Restructuring Plan is subject to definitive documentation as well as court approval, so there can be no assurance the Restructuring Plan will be consummated on the terms set forth above and the final terms of any restructuring transaction could be materially different. The Company plans to operate as usual during the restructuring process and will pay all suppliers and vendors in full under normal terms for goods and services provided.
Advisors
PJT Partners is acting as financial advisor, Weil, Gotshal & Manges LLP is acting as legal counsel and Alvarez & Marsal is acting as restructuring advisor to the Company in connection with the Restructuring Plan. Houlihan Lokey Capital, Inc. is acting as financial advisor and Latham & Watkins LLP is acting as legal advisor to the select ad hoc committee of 3L Notes. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to the select ad hoc committee of Unsecured Notes.
Additional Information
More detailed information of the Restructuring Plan will be made available if and when the Company and select Affected Stakeholders enter into the RSA which will be filed on Form 8-K with the U.S. Securities and Exchange Commission (“SEC”).
Forward-Looking Statements
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, the ability of the Company and its subsidiaries to negotiate and execute the RSA upon the terms set forth herein and to confirm and consummate a plan of reorganization in accordance therewith; risks attendant to the bankruptcy process, including the effects thereof on the Company’s business and on the interests of various constituents, the length of time that the Company might be required to operate in bankruptcy and the continued availability of operating capital during the pendency of such proceedings; risks associated with third party motions in any bankruptcy case, which may interfere with the ability to confirm and consummate a plan of reorganization, potential adverse effects on the Company's liquidity or results of operations; increased costs to execute the reorganization, effects on market price of the Company's common stock and on the Company's ability to access the capital markets, and the risks set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov or through the Company's website at www.halconresources.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.
About Halcón Resources
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
Contact:
Quentin Hicks
SVP, Finance & Investor Relations
Halcón Resources
(832) 538-0557
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The odds of wining this lotto is zero.
On the Q&A says the company will emerge from BK in December of 16.
Is this good or bad for us commons?
• SDOC says it reached a restructuring support agreement with creditors that own more than two thirds of its $4.1B in funded debt obligations, which includes a reserve-based lending facility and the conversion to equity of ~$3.7B of other funded debt.
• The company says it expects to have enough liquidity to fund operations and its capital program through Chapter 11 without the need for further capital.
• SDOC says it has ~$7B in assets and $4B in debt.
Not many sellers either!
I don't care about this Sunday or the Sunday after and I'm holding.