Eagle Energy Inc EGRGF

RE:What am I missing here?

[BigBangOrigins]

I haven't seen the news about the assets of the company being sold to White Oak. If you have a source of this news please share.

The assets listed at about $137 million is book value only and very well could have been that the Management didn't write it down as oil prices declined. Especially during the recent price collapse, the O&G assets would be no where near their book value because of write downs. Write downs occur when the future cash generating abilitiy of an asset has declined.

The dumb management put the company into bankruptcy because of their incompetence and wanted to keep their cushy high paying jobs. As EBITDA declined, it breached the covenants of the the credit agreement with White Oak. Now I believe FTI Consulting is putting together a proposal for White Oak, which could involve either the sale of the assets and if the market value is below the principal owed, then they will likely just hand over the asset to White Oak if they are willing to accept it. 

I've lost money on this stock because of incompetent and greedy management. But it taught me a lesson that I will not be repeating in the future.

BBO