ATPG Senior 11.875% 2nd Lien Bonds (fka ATPG.GE)

[56Chevy]

The ATP BK fooled alot of people..some were very sophisticated investors...so don't feel alone.

All BK's have their "gotcha" moments but anything involving Oil & Gas is extremely hard to value. The bulk of the assets are hidden deep underground (or under-sea) and can only be 'guesstimated'...and when you combine that with the ever-changing price of oil it can get dicey.

I also think the enormous discoveries and emergence of domestic crude from shale in places like the Bakken, Marcellus and Eagle Ford have played a huge role in the future value of all off-shore operations. Why buy an oil platform way out to sea subject to hurricane work stoppages or Gov't drilling restrictions that you have to haul men and equipment to by boat...when you can have a oil rig on land you can get to with a pick-up truck and the crew goes home at night?? The difference in costs to set-up and operate are huge ..but the price of the oil each rig fetches is about the same.

ATP had alot of problems from terrible management to just plain old bad luck but I think this auction should and will send a sobering signal to alot of off-shore companies that their sea iron operations may not be worth what they used to be :~O