Vanguard Natural Resources Inc. (fka VNRRQ)

[56Chevy]

do you think that the court can deny them the ability to cancel class 9 common equities do to the fact that they just went through chapter 11 in 2017

The question should be - will the court deny them the ability to cancel class 9 equities? No. There is no case to be made for equity and no outside pressure to include equity in the plan.

Think of the judge as a "referee". His or her main mission is to officiate what happens between the debtor and the treatment of its' creditors. Period! Equity holders do have "rights" but rarely ever come into play in a bankruptcy. They are on the bottom of the list and in no way equate with creditors.

As a shareholder its important to remember you are an owner in the insolvent business which means you are the guy that OWES somebody money. You are not the guy who is OWED money. You are "the company".

Re: bonuses. It is very common to see "incentives" paid to critical members of the mangement team while in a bankruptcy. Keep in mind these same members just lost their entire equity stake, some were sizeable, as well and they ain't happy! But in order to keep the machine running while going through the restructuring the company needs to keep critical people in place. Its not uncommon for key people to leave once a company files. When a company files bankruptcy the day to day operation has to keep churning. Oil & gas has to be pumped, shipped and sold and keeping critical members in place is crucial or the business simply grinds to a complete halt. Tens of thousands of average joes out in the oil patch would lose their jobs if that were to happen. The word 'bonus' conjures up something altogether different than what is actually happening. VNR is a rare exception but most bankruptcy's take years to get through.

Re: another filing for bankruptcy just 2 years after their last filing is not all that rare. Beginning in 2015 thru until now approx 167 oil & gas companies have had to file bankruptcy. Many were liquidated. Out of that 167 a whopping 15% of those filed again ( aka a ch. 22) not long after their first filing. VNR is one of those companies. It happens. My guess is in 2017 they were banking on the price of oil & natgas going up enough to service their debt load and it didnt.

The company will have new owners which is why existing equity has to be eliminated.