GMX Resources Stock is Gone For Good $GMXR $GMXRQ $STPFQ
As previously reported, on April 1, 2013, GMX Resources Inc. (the “Company” or “GMXR”) filed a voluntary petition (In re: GMX Resources Inc., Debtor, Case No. 13-11456) for reorganization under chapter 11 of title 11 of the U.S. Code (the “Bankruptcy Code”) in the Bankruptcy Court for the Western District of Oklahoma (the “Bankruptcy Court”). Two of the Company’s subsidiaries, Diamond Blue Drilling Co. and Endeavor Pipeline, Inc. (collectively with the Company, the “Debtors”), also filed related petitions with the Bankruptcy Court (Case Nos. 13-11457 and 13-11458, respectively). The Company’s petition and its subsidiaries’ petitions are referred to herein collectively as the “Bankruptcy Case.” On December 5, 2013, the Debtors filed the First Amended Joint Plan of Reorganization of GMX Resources Inc. and its Debtor Subsidiaries under Chapter 11 of the Bankruptcy Code (as subsequently modified, the “Plan”). On January 22, 2014, the Bankruptcy Court entered an Order Confirming First Amended Joint Plan of Reorganization of GMX Resources Inc. and its Subsidiaries Under Chapter 11 of the Bankruptcy Code.It may take a while, but sooner or later worthless shares get cancelled.
The effective date of the Plan was February 3, 2014 (the “Effective Date”). As of the Effective Date, secured claims under the senior-most indenture, allowed by the Bankruptcy Court in the amount of $338,000,000 have been exchanged for equity interests in the reorganized Company and/or a new limited partnership subsidiary. General unsecured creditors received a pro rata share of (1) interests in a creditor trust created as of the Effective Date; and (2) $1.5 million in cash. At the option of the Debtors (with certain required consents), intercompany claims were either reinstated or eliminated, in full or in part. As of the Effective Date, all rights and interests of holders of the Company's common and preferred stock have been terminated.
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3 comments:
Is there a reason there isn't a greater than zero market for the publicly traded shell of a now bankrupt company for buyers interested in getting public market access on the cheap?
Is it because it comes with the stigma of a bankruptcy?
Why extinguish these entities instead of selling them to someone in a "reverse merger" kind of situation that wants a public ticker for their holding co?
The shares cease to exist as a result of the bankruptcy plan confirmation. It creates a new capital structure with a new equity class.
Hmm, I think I get that. I am asking, "is there no other way in these cases than to cause the shares to cease to exist?"
I mean TECHNICALLY don't the creditors of the company get control of the shares? And they sometimes leave the equity as an exchange tradable entity, right?
This is mostly an academic concern so ignore it if I am asking a pointless question that I can't see the pointlessness of at the present moment.
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