RE:Bond holder offer wasn't a serious offer I agree ... why would they sell out and let Harbour/EIG negotiate a great deal with PRE. They would be better renegotiating the terms of the bonds to take a future premium or some equity to allow PRE to survive, particularly if they think oil will recover in a year. I think EIG took advantage of the situation and had inside knowledge (prob Alfa boardmembers) that PRE planned to take advantage of the 30 day grace period to maintain cash requires for the $1B LOC. When they annouced before PRE it painted a dire picture to the market but may be no where close to the truth particularly where you consider these points:
1. Almost half of Q1 production is hedged at $50+
2. Port sale is in the tender process with 8 interested parties for potential proceeds of up to $300M
3. Other possilbe non core asset sales pending of up to $500M
4. PRE had $300M cash in the bank last month.
We need some good news form PRE ... news release on as asset sale would be huge! GLTA Zoo