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Ernie is probably right. Glad to see you again. Ormet was a shame.....
Great entry at or under 9. Potential double up over next 6-12mths with minimal risk
No indication
Calling for an April 216 emergence. All debtholders on board.
IRVING, TX -- (Marketwired) -- 12/15/15 -- Magnum Hunter Resources Corporation (OTC PINK: MHRC) and certain of its wholly-owned subsidiaries (collectively, the "Company" or "Magnum Hunter") today announced that they have filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to facilitate the restructuring of their consolidated balance sheet through a prearranged restructuring plan. The Company also announced its entry into a restructuring support agreement with lenders that hold, in the aggregate, approximately 75% in principal amount of the Company's funded debt claims. Specifically, the parties to the restructuring support agreement hold substantially all of the Company's first lien debt, approximately 66.5% in principal amount of the Company's second lien debt, and approximately 79% in principal amount of the Company's senior unsecured notes. The restructuring support agreement contemplates the debt-to-equity conversion of (i) substantially all of the Company's prepetition funded indebtedness and (ii) 100% of the Company's contemplated postpetition debtor-in-possession financing (described below), resulting in a significantly deleveraged balance sheet upon the Company's anticipated emergence from the chapter 11 bankruptcy process in April 2016. In addition, the restructuring support agreement contemplates a significant cash recovery to vendors and trade claimants.
Notably, the restructuring support agreement provides for debtor-in-possession ("DIP") financing in the form of a $200 million senior secured multi-draw term loan that will be backstopped by lenders who are parties to the restructuring support agreement -- further evidencing the lenders' overwhelming support for the Company's chapter 11 process. The Company anticipates that the DIP financing will provide sufficient liquidity to stabilize the Company's operations and satisfy key vendor, employee, and other key stakeholder commitments for the duration of the restructuring process, and, as noted, the DIP financing is expected to be converted to equity on the Company's exit from the chapter 11 process. The restructuring support agreement represents a significant achievement for the Company in the face of historic commodity price declines in both oil and natural gas and an increasingly depressed operating environment.
Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter, said: "With the unified support of our various lenders, we anticipate this restructuring will be a success and unprecedented in our industry. I believe this restructuring will position Magnum Hunter as a market leader in the upstream sector with an ideal capital structure to capitalize on the large number of opportunities anticipated in our industry due to the precipitous commodity cycle downturn affecting the industry as a whole."
Mr. Evans continued: "At a very challenging time for the entire energy industry, when many of our competitors have been forced to either file for bankruptcy without a plan to emerge in place or continue to attempt to restructure with creditors without an 'end game,' our global restructuring accomplishment is definitely an outlier. We expect the entire process to be efficient, cost effective, and quick. We also anticipate emerging from bankruptcy financially stronger than ever before."
Like many other exploration and production companies, Magnum Hunter's operations have been significantly impacted by the recent and continued dramatic decline in both oil and natural gas prices, as well as natural gas liquids prices, and general uncertainty in the overall energy markets. These macro-economic factors, coupled with Magnum Hunter's substantial debt obligations, resulted in the Company's decision to explore all strategic restructuring alternatives to reduce its overall debt and achieve a sustainable reconstituted capital structure. Magnum Hunter believes that its in-court financial restructuring as contemplated by the terms of the restructuring support agreement will position the Company for long-term success and ultimate profitability. Magnum Hunter also owns an approximately 45% equity ownership interest in Eureka Hunter Holdings, LLC. Eureka Hunter Holdings, LLC and its subsidiaries are not part of the Company's chapter 11 bankruptcy proceedings.
Court filings and other information related to the restructuring proceedings are available at a website administered by the Company's claims agent, Prime Clerk, at https://cases.primeclerk.com/magnumhunter, or via telephone at 844-276-3026 (toll free) or 917-962-8497 (international). Additional information regarding the restructuring support agreement, including the conditions to the DIP financing and to the consummation of the restructuring plan, is contained in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission later today.
PJT Partners LP is serving as financial advisor to Magnum Hunter, Kirkland & Ellis LLP is serving as legal counsel, and Alvarez & Marsal North America, LLC is serving as restructuring advisor. Weil, Gotshal & Manges LLP and Houlihan Lokey are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the Company's first lien debt and second lien debt, in their capacity as prepetition lenders and postpetition DIP lenders. Akin Gump Strauss Hauer & Feld LLP and Centerview Partners are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the Company's first lien debt and senior unsecured notes, in their capacity as prepetition lenders and postpetition DIP lenders.
About Magnum Hunter Resources Corporation
Magnum Hunter 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. The Company's current operations are principally located in the Marcellus Shale and Utica Shale regions of the Appalachian Basin, located in in Ohio and West Virginia. The Company also has interests in acreage and production in Kentucky and has primarily non-operating leasehold working interests in the Williston/Bakken Shale region of North Dakota. For more information about Magnum Hunter, please visit www.mhr.energy.
Forward-Looking Statements
This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Magnum Hunter believes that the expectations reflected in the forward-looking statements are reasonable, Magnum Hunter can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Magnum Hunter with the Securities and Exchange Commission (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the SEC, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." Forward-looking statements speak only as of the date of the document in which they are contained, and Magnum Hunter does not undertake any duty to update any forward-looking statements except as may be required by law
Your selling price will become a few cents after another reverse split. .0001 is never a guaranteed bottom. Especially this piece of garbage. It's a greenhole. Money just gets absorbed for Michery
I'm showing 69m o/s. It was 18. One of the reason I accumulated a mil at one time. Maybe this is why it hasn't been delisted. Diluting it down beforehand.
Bk just filed... What's the point of a PR the day before?
It was energy costs that led to the demise. Their electric company, American Electric Power, essentially put them out of business with the help of a PUCO decision to not grant relief. The power costs doubled in less than 3 years. Ormet began planning the creation of its own power via on site natural gas before the PUCO decision.
Everything is gone. The property is owned by Niagara worldwide. Oil rights and pads are gone. The ormet signs are gone. I live near the site. There's nothing left. Idk why it's still listed.
There's nothing to merge here. I'm not sure why this is still listed
I'm holding regardless. Lost so much money already.... What's another couple k?
This went downhill fast... Wow
It'll pop second half of day. Covering on sudden leg up
We're rolling in premarket. Yesterday was a step forward, not a lifeline. Load up ppl
Magnum Hunter Resources bondholders have hired legal and financial advisers as the oil and gas company nears a $29 million interest payment on its unsecured bonds, sources said.
A source familiar with the situation and an industry source said a bondholder group has hired Akin Gump Strauss Hauer & Feld as legal counsel, and The Deal has learned that the law firm's Arik Preis has the assignment. The industry source said the bondholders' financial adviser is Centerview Partners LLC.
The clock is ticking for Irving, Tex.-basedMagnum Hunter to work out a plan with its bondholders and preferred stockholders and make progress on a hoped-for asset sale and joint venture as it approaches a Nov. 15 payment on its $600 million in 9.75% senior unsecured bonds due May 15, 2020.
Those bonds last traded at 39.96 on Oct. 29, down from around 49 on Oct. 5 when the company hired advisers, according to data from Bloomberg Finance.
Franklin Resources (BEN) held 11.3% of the bonds outstanding as of June 30, whileLegg Mason (LM) held 7.43% as of Sept. 30 and Jackson National Life Insurance Co. held 6.09% as of June 30, according toBloomberg Finance data.
"I am aware that the company is actively putting together a [restructuring] package for bondholders and preferred holders," Dallas Salazar, CEO of energy consulting firm Atlas Consulting, said in a phone interview Monday.
Salazar, who holds just under 5% of Magnum Hunter's equity, has launched an activist campaign that aims to replace the company's board and management. He and an unnamed strategic investor he works with would be interested in investing further in the company and potentially participating in a takeover offer, but he noted that he is waiting for potential rights offerings and other strategic initiatives to take shape.
Meanwhile, an individual investor with stakes in the bonds, preferred shares and equity sent a letter dated Oct. 28 to Magnum Hunter's management, attempting to open a dialogue.
The Deal obtained the letter from investor Kevin McGrath, who claims in his communique to have a $2.5 million position in the 9.75% bonds, a holding of about 5% of Magnum's liquidation preference series C shares (about $5 million in face value), a position of about 2% ($4 million face value) of the liquidation preference D shares, a holding of about 0.5% of the liquidation preference series E shares, and an equity position under 1%.
As McGrath sees it, energy companies such as EQT (EQT) , Antero Resources (AR) ,Gulfport Energy (GPOR) , and private equity firm Lime Rock Partners would be interested in acquiring the company for its acreage and gathering system.
In his ideal scenario, if Magnum Huntercan't find a buyer for itself or its 45.53% stake in natural gas-gathering business Eureka Hunter Holdings, it should transfer its ownership interest in the pipeline to its secured debtholders to satisfy their claims.
If the company could do that, McGrath expects bondholders and preferred shareholders would be willing to participate in exchanges for, respectively, lower-coupon secured debt and common stock.
Magnum Hunter said in a June regulatory filing that it hoped to raise $600 million to $700 million from the sale of its Eureka Hunter asset.
"Should you choose not to open a dialogue with us, I will be very disappointed and begin to solicit stakeholder support to form a coalition to protect our interests in the company and warn you and the advisors of the dangers of fraudulent conveyance," McGrath's letter asserted.
Moody's Investors Service downgraded Magnum Hunter to Caa3 on Friday, warning in a report that day, "The downgrade reflects our view that [Magnum Hunter] will need to do a debt restructuring in a continued low commodity price environment, and may miss the coupon payment on its 9.75% $600 million senior notes due on November 15 absent a substantive asset sale."
The report criticized the company's capital structure. "High interest costs and preferred dividend payouts have historically drained [Magnum Hunter]'s liquidity and limited its ability to sufficiently invest in its core E&P operations," it read.
Magnum Hunter is working with financial adviser PJT Partners LP's Tim Coleman and Peter Laurinaitis, and legal counsel Kirkland & Ellis LLP's Brian Schartz, Edward Sassower, John Pitts, and Andrew Calder.
Other than its bonds, the company has a senior first-lien revolving credit facility with an initial borrowing base of $50 million led by administrative agent Bank of Montreal, due on Oct. 22, 2018, and a $340 million second-lien term loan led by the Cayman Islands branch of Credit Suisse, due Oct. 22, 2019, and bearing interest at either the alternative base rate plus 650 basis points or Libor plus 750 basis points.
Representatives for Magnum Hunter didn't respond to requests for comment. An Akin Gump spokesman didn't return calls, and neither did officials at Centerview, PJT, and Kirkland & Ellis didn't return calls.
---Claire Poole contributed to this report
That's what I keep thinking. Keep on averaging down. I'll be holding for long term.
Turning into a slaughterhouse... Really didn't see this coming
Buy. There's asset sale ongoing. I'm loving this
Making the turn. Didn't realize short interest up so much. Id imagine that will die down now that it's been run down for so long.
It doesn't exist. It's a shell with nothing left after bk
May get burned on this one...I'm holding. Results at Friday 9am. Mind well buy into the 80s
The longer we stay at the psychological 1.00 mark the more we build support at it imo
Buying anything .90-1.00
Never thought it'd make sub dollar
Nothing on wires. Anyone find anything?
Apologize for two typos: More than likely they got some piece of the pie*** and also was suppose to read THE warrants, not three warrants speaking of OPXAW which is the ticker for the warrant
It shot up because the company who managed the rights offering initiated coverage on it with a price target of 5$. More than likely they got stone off the pie for that rights offering as compensation for those things. Second, they may have been trying to get the sticker in NASDAQ compliance with the minimum listing price of 1$ as Opexa had received notices and extension for this. They now have another 180 days which just started last week. June 4 if I remember correct. They can RS to accomplish or the stock may get there which would be nice. Three warrants also are set up for rights to .50 short-term and 1.50 long term. All this make you weary on a pos penny stock but in the biotechs everyone knows these can gap up by dollars on the word of good clinical trial results. One of which had been designated Fast Track by FDA. I think this is a great play and the right time to get in at a half dollar.
Can't find anything for that surge. What's going on here?
300m is the big number we are looking at, yes. 60 mill paid back initially. Did we forget about the larger accounts that were being held accountable for losses? That could get us WELL past the halfway mark of full repayment to Luk. I don't see the doom and gloom.
3 years?
I hope this continues to take a crap for a couple weeks.... Bought 40s, sold 90s+. The reset is perfect so far.... Cmon 50s!
Sell it for nothing or put it in the back of your account for a possible rainy day down the road.... I'll choose the latter
.91 close
Csti and arca combined for a nice 500k short at bell
ARCA just went crazy for a cpl mins
Anyone else's l2s for this just stopping completely? Only for gts tho...not all.
What time is court meeting today? 10?