Southern Pacific Resource Corp STPJF

STP halt

[bambus]

Guys is STP halted bc of CCAA protection or bc tax is reviewing it to kick it out ?

[bambus]

Sorry typo..tsx not tax

[nikehercules]

@Bambus Read below, if you don't understand, feel free to ask. Companies’ Creditors Arrangement Act (R.S.C., 1985, c. C-36) Payment - equity claims s 6.(8) No compromise or arrangement that provides for the payment of an equity claim is to be sanctioned by the court unless it provides that all claims that are not equity claims are to be paid in full before the equity claim is to be paid.

[bambus]

Secured loans are to be paid first and if there is something leftover then the common stock holders can be paid as well... accurate translation Nike? Were there any similar cases that you know of where stock holders got paid ? I tried to look and only found SH getting nothing...

[nikehercules]

Sorry Bambus, STP owes approximately $682 million according to paragraph 69 on page 11 of the court filing. There isn't enough value left in STP to pay the creditors off. Secured and unsecured creditors must be paid in full before equity gets anything. That's statute law so the judge has no choice. Look at Lone Pine Resources (LPR) for an example. PNP just avoided CCAA protection

[bambus]

That's a shat load of debt for a company producing so little... I am honestly looking at myself and asking what the heck was I thinking investing in it in the first place...it was a walking dead even a year ago when I first invested in it...

[budworm]

I hear you Bambus.  I think I first got in in 2010.  I think at that time they had cash, lots of real estate, an experienced crew of engineers.  I was way over my head but thought I did enough research.  Even asked myself, how could this possibly fail.   At least now I know.  Lesson learned.

[nikehercules]

babus, budworm, I hope you two didn't lose too much money and you guys walk away from this a little wiser. After watching 2P1 decline then flatline on IHS it was obvious something was wrong with the ICD's. STP needed 6,000+ bbls/day to break even with $90-$100 oil. With Senlac decline and McKay wells pushing out 300bbls/day this looked less and less likely. All these facts were discussed

[budworm]

Hey Nike, thanks.  I've certainly enjoyed the ride here on Stockhouse with most of you guys.  In all honesty, I meant what I said about being over my head.  Half the time I didn't know what you guys were even talking about. lol  My losses likely could have been used as a good down payment for Shats boat but I'm ok, certainly no lifestyle changes.  So I chalk it

[edmbonds]

budworm ... don't ever suspect that anyone at SH knows more than you.  Its more than 90% BS.  Of the remaining 10%, maybe half is mildly useful and a fraction of that can be helpful.  If SH is over your head, you should not be investing in equity.

[nikehercules]

If you've never seen a CCAA filing before, the list of creditors is on the monitor's website. There's also a letter addressed to STP's suppliers stating they can't pay any bills submitted before the CCAA application.

[monzie]

Well atleast they lumped the debentures in with the 260 million second lien notes under Valiant.  Come on ten cents on the dollar.  On a side note I can't wait to see what industry Lutes goes to next cause I doubt he'll find anything in the oil industry again.