Bellatrix Exploration Ltd (Canada) BXEFF

Energy

Bellatrix Exploration Ltd is a Canada-based oil and gas company, engaged in the exploration, acquisition, development, and production of oil and natural gas reserves in the provinces of Alberta, British Columbia, and Saskatchewan. It primarily focuses on developing its two core resource plays, the Cardium and the Notikewin/Falher intervals in Western Canada. The Notikewin/Falher in Alberta's deep basin boasts abundant, liquids-rich natural gas with compelling economics. The Cardium is a highly e

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Bellatrix Exploration Ltd (Canada) > Debt Retirement - US $10M vs 7,081,837 Shares

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Comment by canneon May 04, 2018 5:41pm

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Post# 27985613

RE:Debt Retirement - US $10M vs 7,081,837 Shares

I don't think there is much of an argument that replacing debt with equity benefits mostly the debt holders. The holders of the debt walk away with a bunch of money, equity holders get to watch the share count go sky high and the stock price plummet. So you say "but now the management has financial flexibility to grow". Yeh, now management gets to assume more debt by buying when prices are high. The losers are going to be the (you guessed it) shareholders. Debt holders walk away with cash, management with a bunch of bonuses and the people that are taking all the risk get a box of Kleenex.

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