Return Email from Investor RelationsDon't know if anyone received a response back from IR but here is the response I got back from my email I sent in regarding my concerns for us existing shareholders.
Miguel;
Thanks for the email. As a result of the restructuring of the company that was announced yesterday morning, the TSX suspended trading in PRE and is moving towards an “expedited delisting” as PRE no longer qualifies for a TSX listing as a result of the restructuring announcement. That is the short answer on the stock/trading/price etc.
The restructuring will result in Pacific E&P applying for CCAA insolvency protection while the restructuring is worked out with Catalyst and the debtholders. This will be overseen by a court-appointed Monitor and the Court itself. Approximately $5 billion of debt is being converted to equity to give the debtholders some of their money back. They will own the equity in the company (as per the press release yesterday morning) and will appoint a new Board of Directors, who will appoint a management team who are going to oversee the assets once the process is completed.
The restructured company will see a huge dilution of shares due to new equity being issued for the outstanding debt. Assuming that the Court approves of the process, the existing equity shares will be minimal compared to the potential billions of new shares to be issued, or the Court might decide to extinguish them entirely. That process is expected to be concluded by the end of September.
It is hard to believe they are going to make all of the existing shareholders wait until the end of September to find out how bad they are going to screw us. This just seems criminal.... If they apply for CCAA insolvency protection and it gets approved we are pretty much screwed. Unless by some miracle they turn the company around while this whole process takes place which is highly unlikely.
If anyone can see any light in this tunnel please share it!
Miguel