Swift Energy fka SFYWQ

[LouisDesyjr]

DIP financing bounce and Q4 2015 results

http://ih.advfn.com/p.php?pid=nmona&article=70771451
On March 11, the company filed a statement 8K about DIP financing. A lot of times, when a company annouces the DIP (Debtor In Possession) financing, the stock jumps because a lot of the retail market 'thinks the company is saved' and the existing common shares are going to have a better chance now.

What most (all?) of them do not understand, is that the DIP financing has super priority status in order of the classes, so the existing common shares are now at the end of an even longer line for any recovery in the bankruptcy process.

https://finance.yahoo.com/q/bs?s=SFYWQ
https://finance.yahoo.com/q/is?s=SFYWQ&annual
Even worse, is that it looks like the company took a $1.5 billion write off in 2015, making equity negative by about $852 million. As a result, the equity has all been wiped out and the existing common shares are dead.

There is nothing left for them to recover on.

Louis J. Desy Jr.