Vanguard Natural Resources Inc. (fka VNRRQ)

[56Chevy]

I apprciate the encouragement $$ITS ONLY MONEY$$.

Rule #1) Corporate bankruptcy is all about the creditors and their legal rights.

Rule #2) See rule #1.

"...it is my take at the moment that we are still at a 50/50 on wether the commons will survive or not. What’s your opinion? Haven’t seen anything to suggest they are being canceled and haven’t seen anything insinuating they will be preserved".

On April 30, 2019, the Debtors filed their Plan of Reorganization (POR) and the Disclosure Statement (DS) related thereto. The Bankruptcy Court will hold a hearing to consider approval of the DS on May 28, 2019 at 2:30 p.m. (CT).

Let's get a quick word in about what a DS is and why it is required first before talking about what the POR calls for regarding common equity. When a company files for Chapter 11 bankruptcy, they must file a DS with the court. The DS must provide adequate and FULL disclosure about the debtors financial affairs to allow their creditors to make an informed decision about whether to accept or reject the debtors POR. Everything about who the debtor owes, how much, when, where and why is in that DS. The statement lists the biggest secured creditors down to the smallest unsecured creditors and or vendors. There are no secrets in the DS...think of it like a financial prostrate exam.

Ok..on to what the POR calls for regarding what will happen to the existing common equity shares if and when this POR is approved and confirmed. The legal term used for this action is called "treatment".

If you look at court document #230 and go to page 20 of 53 you will see;

ARTICLE III. CLASSIFICATION AND TREATMENT OF CLAIMS AND INTERESTS

Every security a debtor has is given a "classification". In this VNR case common equity interests are given the classification 9.

Next scroll down to page 24 of 53 and on the top of that page you will see the proposed treatment for class 9. It says as follows;

Class 9 – Existing Equity Interests

(a) Classification: Class 9 consists of all Existing Equity Interests.

(b) Treatment: Each Class 9 Interest will be canceled, released, and extinguished, and will be of no further force or effect. Each holder of an Interest will not receive any distribution on account of such Interest.

(c) Voting: Class 9 is Impaired. Holders of Class 9 Interests are conclusively deemed to have rejected the Plan under section 1126(g) of the Bankruptcy Code. Holders Class 9 Claims are not entitled to vote to accept or reject the Plan.

Source:
https://cases.primeclerk.com/vnr/Home-DocketInfo?DocAttribute=4216&DocAttrName=PlanDisclosureStatement
.........

*This POR has not been confirmed yet. There may be "amendments" to the POR however it extremely unlikely any amendment(s) will change or alter the treatment spelled out for holders of class 9.

I wish I had better news for you but this is as close to written in stone as you can get. The SEC nor the court drafts the POR.
They are there to make certain the legalities are carried out and administered.