The common shares are worthless.
It is very easy to find out that the common shares are worthless. While I do not know the exact reorganization plan that will be proposed, I can tell you that the common shares will have no part or say in any such plan because they are too far down the list for any rights or recovery. It is possible that even the trade payables and unsecured debt may get nothing in any reorganization plan. All of the information that anyone needs was contained in the quarterly reports for the past year. The company lost money almost every quarter, and that was while oil prices were high, and stockholders equity was about $1 billion negative the entire time. Once you know and understand that, you then would know that the first problem that came along, like oil prices declining by 50% in late 2014, was going to finish the company off. There is no reason why the other classes of unsecured debt are going to allow the common shares to recover anything or have any rights in a reorganization plan unless they are paid in full first. As of the date of the filing, it is very possible that all of the unsecured loans are going to be wiped out also; i.e. the unsecured may get zero because there may not be enough to pay off the secured debt due to expenses from the bankruptcy filing or the problem of selling the assets with oil being down 50% from where it was last year. The problem for the common shares is that the unsecured debt has higher priority in the Chapter 11 than the common shares.
In order for Quicksilver common shares to have a chance at any recovery, the value of the assets would have to at least double within the next few months.
Louis J. Desy Jr.
News 
Market Data 
Discover 
