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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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
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?