GREY:BXEFF - Post by User
Comment by
miketrikeon Oct 05, 2019 11:48am
113 Views
Post# 30199679
RE:RE:83.5% of shares are held by former note and debenture holder
RE:RE:83.5% of shares are held by former note and debenture holderYou are assuming that the former holders who own 83.5% of the shares are stupid. Do you think they would have converted their debt to shares if they didn't think the liquidation value would make them whole again? Remember some of the current note holders are also part of the 83.5%.
It almost seems like it was their plan to take over the company so that it could be liquidated at the first sign of trouble.
Crescent point just sold some assets for $35,000 per producing boe.
If BXE can sell theirs for say $20,000 per producing boe they would get
$20,000 * 36,000 boe = $720 million
Their total liabilities is well under 600 million but lets say it is $600 million that would leave 120 million for shareholders, which would mean $3 per share.
"Even in this environment I have never seen a deal below $20,000 per flowing barrel. " from poster Hendrick3
Also CCAA protection allows them to sell assets without creditors trying to claim them. Nobody would bother bidding on their assets if they weren't under CCAA protection.
I have a feeling that the 83.5% of shareholders are smarter than 95% of Stockhouse posters who have no clue what is going on but just like to laugh at the failures of others. Schadenfreude is alive and well on this board!
It is possible that shareholders get nothing but it is also quite possible they could get $3 per share or more once the dust has settled.
BXE is also not going bankrupt like the title the Globe printed in error!