Replies to post #288 on Seventy Seven Energy Inc. (fka SVNT)

[BocaRaton]

That depends on the value of the underwater warrants to be issued and the market conditions to purchase them.

Some information to consider:

The Solicitation and Disclosure Statement mentioned that the going concern would be in the $700M-$900M range and the equity value (for the 65% new common shareholders) in the $258M - $$458M range. The warrants give you a right to purchase stock at that strike price.

The 15% A Warrants have a strike price based on a $542M equity value, the 10% B Warrants have a strike price based on a $1.788B equity value and the C Warrants a strike price based on a $2.5B equity value.

These Warrants are all very underwater, but they may have value as the B Warrants are for 5 years and the C Warrants are for 7 years.

If you assume you get 1 B and 1 C for each share of stock, then you need to divide the value in half in looking at the value for each.