Delta Petroleum (fka DPTRQ)

[56Chevy]

I really hesitate to say rockythedog - The first rule of investing in Bankrupt (BK) companies is - US Bankruptcy Court is ALL about the rights & recovery of the creditors ...not the debtors' equity holders. Period. You have to start with that firmly planted in your mind on any bankrutcy.

Sales or auctions of assets by the debtor are typically not good for the shareholders. I don't know if this is a 363 sale...I haven't looked into this enough but it appears that's what this is.

363 sales can end up being a "fire sale" of the companies assets. Bidders are looking to cherry pick the best parts of the business at deeply discounted prices. The debtor knows that and is hoping someone includes the net operating losses (NOL) in their bid which would presumably make bids higher and include a plan with no change of ownership. That would be a good thing for legacy shareholders BUT I would be very cautious...color me skeptical that actually happens. If the debtor is considering a 363 sale the business probably does not have strategic value as a whole.

Again, I just don't know the entire picture. Good luck.

http://www.mcguirewoods.com/news-resources/publications/financial_services/jblp.15.02.pdf