Replies to post #755 on Vanguard Natural Resources Inc. (fka VNRRQ)

[ztraderx]

Exactly right! I knew this shit was risky.

Don't buy this POS!

Although a company may emerge from bankruptcy as a viable entity, the creditors and the bondholders generally become the new equity owners -- and their first order of business is to cancel the existing equity shares.
If the company does come out of bankruptcy, there may be two different types of common stock, with different ticker symbols, listed for the same company. One is the old common stock (the stock that was on the market when the company went kaput), which will trade on the Pink Sheets or over the counter with a five-letter symbol ending in "Q".
The second is the new common stock that the company issued as part of its reorganization plan. If you are betting on the company to rise from the ashes, this is the one you want, so make sure you place your order correctly.

[ZIA SPIRIT]

That formula can be changed by the judge and most likely will be based on the value of the emerging company. It could and is believed to be much higher than that. We will run hard in the meantime.

[boston127]

X-ray - I'm a bit confused. Why would

anyone own commons shares if they are getting cancelled?

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 ...
Quote:

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.

[boston127]

QTRADERQ - I am a bit confused.

Other posts did not mention some of the facts that you highlighted. So, if I read everything correctly, if I invest $20,000 tomorrow in common shares, that gets diluted by 97%. The common share price now is .07.

Why would anyone own commons shares if they are getting cancelled?

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 ...
Quote:

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.

[crudeoil24]

Looking at .04 > That is not so good:

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...
Quote:
“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 ...
Quote:
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