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WLL WHITING PETROLEUM CORP Aims to Exit Chapter 11

Long
NYSE:WLL   WHITING PETROLEUM CORP
Bankrupt shale driller Whiting Petroleum Corp. says it’s on track to emerge from bankruptcy this summer after filing Chapter 11.
Yet in the Denver-based oil company’s agreement with its bondholders, 97% of the new equity from the reorganization will go to Whiting’s debt investors, while only 3% will go to the current holders of Whiting’s stock.
Wll has a Market Capitalization of 115.18M

But let me tell you a short story about the shares of American Airlines’ parent company, AMR Corp.
AMR filed for bankruptcy in November 2011. AMR listed $29.6 billion in debt and only $24.7 billion in assets.
Shares of AMR stock plummeted the day it filed for bankruptcy, closing at 26 cents.
In of 2012, AMR shares traded below $1. The stock was delisted from the New York Stock Exchange in January 2012 because it could not maintain the listing requirements.
In February 2013, AMR announced plans to merge with US Airways as part of its bankruptcy restructuring and shareholders were told they would receive at least 3.5 percent of the new company. The AMR’s creditor claims were paid in full.
In conclusion, as the company grew, if you would bought 10 000 usd shares of that bankrupt AMR in 2012, you had more that 1 000 000 usd in Feb 2015.
This is not financial advice and buying this kind of shares is very risky, as debt holders have priority to collect what they’re owned and there’s usually nothing left for shareholders.
The oil drop in prices may eventually lead to collapse of regimes in Nigeria, Saudi Arabia, and other oil dependent economies.

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Comments

CryptoFundManager mostymosty77
@mostymosty77, Just sent you the indicators.
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With the equity being zero, per court today does that mean my 18k share go poof - or can I hold them and the company emerges out of chapter 11 they will be worth something later? So I need to be hold for long outcome or sell for loss?
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trungcrz seanmcmanus_wv
@seanmcmanus_wv, this is the question I have been ask everybody and researched but seem no one can really know the answer.
+1 Reply
@trungcrz,
I understand if the company ceases to exist then my shares are gone
BUT I assumed if I have 18k shares and company continues I have 18k shares. I’m not sure what the equity decision does to them. That would be nice to know.
I am willing to gamble on keeping the 18k shares (46k for me @2.54 per share
But if they become zero (if that’s what zero equity means then I’d prefer not to loose all of my 46k and sell for loss. I keep seeing the long posts and if wine could answer that I’d feel better.
It is hypothetically possible for WLL to succeed after emerging from CH11 and say be at 8/share and if I hold in 300% or be bought by large company and shares go up.

I just would like to know
+1 Reply
trungcrz seanmcmanus_wv
@seanmcmanus_wv, the company will continue to operate. When the company filed for chapter 11 they are try to get rid of the debt by giving their shares to the creditors for forgiveness of their debts. Pretty much paying their debt with shares. For what I know WLL will give 97% of their equity to the creditor. We as shareholder get 3% This is where I am not 100% understand how this work.
Reply
@trungcrz,
The UCC is fighting to make it 100/0 in court hearing today
Won’t be decided until August
I assume if it 0 equity that means the shares are worthless and company ceases to exist? Or company exists and all shares null? I don’t understand that
If 97/3 I understand. It goes on and we have the shares just the price will be significantly reduced. Say .50 cents from my understanding
(Which I would immediately sink 10k into that price with the hopes of making up losses on the way back up
.50 to 1.50 would make up all my loses if 2.54 to 1.50 for instance

Does 100/0 mean WLL is gone and done or our shares are all gone and done?
Reply
trungcrz seanmcmanus_wv
@seanmcmanus_wv, if 100/0 than we doom. If 97/3 like you said we still have the share but the price get reduce that is ok. WLL will get back on it feet and fully operate by the end of the year. With this production cut from OPEC. And we back to normal by next year oil will skyrock due to supply and demand. We needed someone to know what will happen to our shares when the company is exit from chapter 11 so we know what to do.
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If I have 18100 shares what happens when after new stock price issued
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Ammos1223 seanmcmanus_wv
@seanmcmanus_wv , did you find out what happens if a new stock will be issued when they will rise up from chapter 11? Thanks
Reply
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