"According to a Bloomberg report, the Colorado oil producer, whose stock is now trading at a very sub-eagle
$0.20, or about $6MM in market cap (the stock was at $6.00 when the
Seeking Alpha report came out) has announced it will not make even one
coupon payment on its bonds issued less than seven months ago [...] And instead of fulfilling its naive bondholders dreams that they will
collect an 11% annual coupon for the next 5 years and then get repaid in
full, the company hired bankruptcy advisers, Canaccord Genuity and
Seaport, to negotiate a restructuring plan with the bondholders [...] And since the company won't have any cash to repay anyone, the
bondholders will end up with the equity, the problem is that this is
equity in a company which even post restructuring, will be unviable
absent oil returning back to the $80+ ballpark [...] What is perhaps most odd is that American Eagle Energy actually had
downside oil hedges: the only problem, they were not nearly enough!"
Zum Artikel von 'Tyler Durden', erschienen auf ZeroHedge (5. März 2015) »
