ATP Oil and Gas - Imminent Bankruptcy

It appears that ATP Oil and Gas will be forced to restructure via a bankruptcy filing in the coming weeks, the Wall Street Journal is reporting.  Shares are trading well into penny-stock territory, at just $0.36.  Negotiations are said to be ongoing with senior creditors, and the company delayed its second quarter filing until matters become more clear.  The company will obtain a $600 million loan to remain liquid during legal proceedings.

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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