I completely agree, I've done my homework 10x over. even before Breitburn declared bankruptcy I was following, watching, and doing homework.
Was stunned that they declared bankruptcy. But of course they would declare bankruptcy. Drop debt, management incentives, shark lenders (Dip lenders) can steal the company, etc. It happens almost every. single. bankruptcy.
Also, why do you think huge money players were buying bonds? They KNOW breitburn has value, yet stay the **** away from the commons because 9/10 times commons get wiped out. And this wipe out is always led by the debtors and their DIP lenders.
Many times a year a companies equity is wiped out in bankruptcy illegally and that is just how the court system works. Maybe it will be different here but statistically, equity gets screwed over 9/10 EVEN when their is value left.
This judge has acted different then most when it comes to the equity question, and that's nice and all. SEC backing equity committee is new also. But i'm a little pessimistic about US BR court so eh. I hope to god an EC is appointed, I like your "got caught and will pay for it." above all an EC getting appointed would feel like sweet justice. At least in the short term. In the long term hopefully equity gets a meaningful recovery, that would REALLY stick it to the DIP lenders MMMM.
Oh and the bond buyers who thought they were buying the company for 25 cents on the dollar a few months ago. that is still a decent recovery though..
Why must Longs and Shorts hate each other? Can't we all just get aLONG?
