At this point it’s unclear what, if anything, might be left over for the
disheartened – and now impoverished – owners of the common stock. The stock once traded at well above $50, and
it’s a harsh reminder that “debt” can be the cruelest four-letter word in the
English language.
My original write-up on ATP Oil and Gas is here.
Disclosure: At the time this article was published, the author was long
ATP Oil and Gas options.
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Disclaimer: The host of this blog shall not be held responsible or liable for, and indeed expressly disclaims any responsibility or liability for any losses, financial or otherwise, or damages of any nature whatsoever, that may result from or relate to the use of this blog. This disclaimer applies to all material that is posted or published anywhere on this blog.
Very educating thread- been really interesting reading the whole thing now, from high expectations to the painful fall.
ReplyDeleteAssuming the court will aprove the filing, how do you believe ATP will go on operating with all of it's suppliers trying to cache what is owed to them?
ATP secured a $600 million-plus "debtor-in-possesion" loan, which will allow the company to continue operating even as it moves through the bankruptcy process.
ReplyDeleteWhile there is a lot of variability between different bankruptcy cases, secured creditors will be first in line to be repaid, unsecured next, and common stock holders at or near the bottom of the pecking order, hence the current stock price.
Visit this link for a good overview of US bankruptcy filings:
http://www.investopedia.com/articles/01/120501.asp#axzz24CtrIUyF