It is not a 'common practice'
That is not correct. If there was a reasonable expectation there would be money left over, either as equity in the reformed company or a distribution from a liquidation, then they would not have made such a statement. People over at the Radio Shack (RSHCQ) made the same argument when that company put such language in a 8K report, and now they are watching as the company converts the Chapter 11 to 1 Chapter 7 with nothing for the RSHCQ shares.
If you look at the filing schedules for the three entities that compose Dune Energy on PrimeClerk.com, you will see that two of the entities have liabilities that far exceed assets. The third entity, which I believe is the parent company, does have assets that exceed liabilities but most of that consists of receivables from the other two subsidiaries, which have no way to pay it off.
One of the assets (land or oil right) sold off was so bad off that it only got sold for $1 plus the assumption of liabilities.
This stock probably went up today because the sale went through but people are not looking at how much the company got for the sale verses what it was being carried on the book for. Right now there is not enough information to tell exactly how much they loss, until they file a monthly operating report or the 10Q; but I expect it will show the shareholder equity is now negative. That means the common shares will get nothing in the reorg and are wiped out. I also expect that at some point the Chapter 11 filing will be converted to a Chapter 7 liquidation once all of the land is sold off.
Louis J. Desy Jr.
