Unit Corporation (UNTC)

[YanksGhost]

This restructuring is a sleazebag deal for shareholders who get screwed so that secured lenders and noteholders get rescued. The truth is that the Superior Pipeline Company, L.L.C. property is not part of the CH XI filing. This asset remains the property of shareholders. But their interest is getting TAKEN and extinguished by Unit's management and Board who cut a secret deal with favored parties to remain a going concern.

Unit Corporation sold a 50% interest in Superior in 2018 for $300 M at a time where the petroleum market weakness was fully in force. That means that the 50% they continue to own and which is not part of the bankruptcy filing are worth $300 million, more or less.

Unit has 55.42 M common shares set to be extinguished shortly. There only two ways the "unfair discrimination test" can be avoided, which likely would trigger a CH VII liquiudation and put management out of a job and a loss of unfunded pension liabilities:

1. Provide common shareholders with a $300 M share of new equity representing the value of the non-BK Superior asset.

2. Pay every shareholder a one time claim without any impairment equivalent to $5.41 per share as part of the new Agreement.

IMO.