RE:RE:Questions on PRE
Sorry to hear about your loss. a lot of investors were screwed out of their money when ohara scuttled the $6.50 deal. Today, PRE hit a record low of US$0.10 in the US OTC - PEGFF. it recovered to $0.17, but that is only $0.22 CDN. Far cry from what it was a year ago.
The issue here is debt, the company decided to restructure $5B of debt and convert that to equity. PRE over-leveraged itself with debt, then revenue crashed when oil fell to $40, also the value of the underlying assets started to crash, while interest payments were $200+ M and the Rubiales field will be returned later this summer, it was a perfect storm for a disaster.
What that means to common stock holders is the creditors have seized ownership of the company. PRE did not officially go bankrupt but in every aspect it did - its like you borrowed money to buy a house but then the market value fell and you were laid off - the bank has come a knocking and foreclosed on the house.
I don't think they can legally extinguish the commons shares but what happens is they will do a reverse split, take the current 100M shares and consolidate 100 to 1- and then convert the debt into shares and issue a whole whack of new shares - making the existing shares worth practically nothing.
its a bad situation and lots of people lost huge on this. unfortunately there is very little anyone can to to recoup the money.