Stalking horse bid of $70 million
It looks like it is all over for the common shares. I estimate that even if there was no debt interest or any other payments except the cost to get the oil out of the ground, that the oil revenue would only support a price of $120 million for all of the assets, minus $20 million that liabilities exceed assets by. I expect that the bidding will go to no more than $100 million, leaving the bond holders with a loss of at least $75 million on the bonds.
The bonds are higher in priority that the common shares, so the common shares are going to get wiped out, along with all of the unsecured creditors.
Louis J. Desy Jr.
News 
Market Data 
Discover 
