This was a long overdue forced sale. NGAS is selling the company for about 1/8 of its book value however its the best option management has; it has been the best option that management has had available to them for several years.
They should not have allowed the company with so many significant assets to run out of its liquidity. It should not have gotten to the point where by missing a deadline they went into default on their bonds.
By failing to close this deal by the end of the last quarter they were forced to give 7% of the company away to the bondholders in the form of 3.25 million $0.37 warrants.
Magnum Hunter (MHR) was up 7.3% today on the news of the steal that it was getting for NGAS. MHR is wisely doing this as an all stock deal since their stock is up 900% since mid 2009. At $0.0846 per share of MHR, NGAS shareholders are getting at $.609 as of todays close.
I think NGAS was over a barrel.. Might have been yet more bleak alternatives.
News 
Market Data 
Discover 
AI
