Floating...I don't have any info other than my speculation but I did review several case studies this weekend of companies who went into bankruptcies, had their stock price destroyed, and when they emerged, they were Huge Life Changing Events for the shareholders who bought in low. There aren't many but there are some, and this definitely may be the next one. They all had the commonality of 1) having an EC formed and approved by the court, 2) had assets in a company that were worth more than liabilities and 3) those assets were meaningful to others and BBEPQ CHECKS THE MARK IN ALL 3 OF THOSE BOXES. I REPEAT....BBEPQ CHECKS THE MARK IN ALL 3 OF THOSE BOXES.
I have mentioned the Sand Ridge case often and again I refer to that in terms of potential motive by the debtors. I also again mention the quality and experience of people lining up here to support Equity. So when it comes to valuations, if there is more than $2B of a difference, that should make you suspicious right off the bat of the debtors. I mean Martin Lewis has nothing to gain by making up some crazy valuation.
If anything, 674 appears to be angling for what others have speculated, and that is for a liquidation where parts are auctioned off. I have no idea why a company would buy the whole thing, but I do know that there have been a lot of investors circling oil and gas investments recently. There are lots of big names on the hunt and some have already done so with other companies, so no I wouldn't be shocked to see that happen.
Remember this, there wasn't even an EC until Friday afternoon. We are just at the beginning here. An EC changes the ballgame IMO. The next step is to start following the money that comes in as I think there will be some, especially when the threat of CODI is removed, and it's hard to not think that it will be with an EC now representing equity.
