Replies to post #651 on Vanguard Natural Resources Inc. (fka VNRRQ)

[boston127]

Thanks.

But, a new buyer this week will not get the warrants, correct?

[QTRADERQ]

Existing Common is CANCELLED. Warrants worth .014 -.04.. (See below for computation)

"Existing" common shareholders will get warrants to buy 3% of "New" common stock

As per Par 229 on page 29...

“VNR Common Unit New Warrants” means the 3-year warrants issued to Holders of Allowed VNR Common Units for three percent (3%) of the New Common Stock as of the Effective Date

Source: "Petition 843" at the bottom
https://cases.primeclerk.com/vanguard/Home-DocketInfo?DockSearchValue=843

Is "Existing" common getting cancelled?
Yes. "Existing" common shareholders will be cancelled and "New" Common will be issued. "Existing" common shareholder's will receive a warrant or right to buy "New" Common shares.

What will be the formula to determine how many warrants each shareholder receives?
The formula is "No. of existing shares * 3%" That's it. On page 29 of the Second Amended Joint Plan of Reorganization dated 5/31/17, it says ...

Common shareholder's to receive warrants for 3% of "New" common.

So what are these warrants worth?
Presuming OS is still 131 mil , the warrants are worth between .014 -.04.

How is that computed?. VNRSQ traded between .46 - $1.35 in the 4 months prior to filing for bankruptcy. At 131 mil OS, VNRSQ had a market cap between $60 mil - $177 mil before they declared bankruptcy on Feb 1. So the 3% warrants are worth 3% of $60 mil - $177 mil (or $1.8 mil - $5.3 mil). Divided by 131 mil OS = .014 - .04

All imo