Friday, September 23, 2016

Bonanza Creek Energy Bonds Yielding 30%

There's $500 million outstanding of the 6.75% notes due 2021. The next coupon is on October 15, about three weeks away, and it will be for almost $17 million.

Given that they used the 30 day grace period on the ~$8.6 million unsecured interest payment on August 1st, it seems like there's a decent chance that they will default on this next payment.

Arch Coal Confirmation of Plan of Reorganization

From an 8-K filing last week:

  • On September 13, 2016, the Bankruptcy Court entered an order, Docket No. 1324 (the “Confirmation Order”), attached hereto as Exhibit 2.1, confirming the Debtors’ Fourth Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code, dated September 11, 2016 (the “Plan”). The Plan incorporates by reference certain documents filed with the Bankruptcy Court as part of the “Plan Supplement.” A copy of the Plan is attached hereto as Exhibit 2.2.
  • The Plan will not become effective until certain conditions are satisfied or waived, including, (a) the documents governing the Reorganized Debtors’ new $326.5 million first lien debt facility (the “New First Lien Debt Facility”) shall have been duly executed and delivered by the Reorganized Debtors parties thereto, and all conditions precedent to the consummation of the New First Lien Debt Facility shall have been waived or satisfied in accordance with the terms thereof, and the closing of the New First Lien Debt Facility shall have occurred; (b) the Debtors’ existing securitization facility shall be reinstated on terms substantially as set forth in the Plan Supplement; (c) all documents and agreements necessary to implement the Plan, including the Plan Supplement and the Confirmation Order, shall have been executed; and (d) the Debtors shall have received all authorizations, consents, regulatory approvals, rulings, letters, no-action letters, opinions or documents that are necessary to implement the Plan and that are required by law, regulation or order. The date on which all conditions to the effectiveness of the Plan have been satisfied or waived will be the “Effective Date” of the Plan. It is possible that amendments could be made to the Plan prior to effectiveness.
  • Arch Coal currently has 21,298,872 shares of common stock, par value $0.01 per share, issued and outstanding. On the Effective Date, all outstanding shares of Arch Coal’s common stock will be cancelled and extinguished, and any rights of any holder in respect thereof, will be deemed cancelled, discharged and of no force or effect.
  • On the Effective Date, Reorganized Arch Coal will file with the Secretary of State of the State of Delaware an Amended & Restated Certificate of Incorporation authorizing the issuance of 25 million shares of New Common Stock, divided among Class A common stock, par value $0.01 per share (“Class A Common Stock”), Class B common stock, par value $0.01 per share (“Class B Common Stock”), and 50,000,000 shares of preferred stock, par value $0.01 per share.  The Class B Common Stock will have identical terms to the Class A Common Stock, except that the Class B Common Stock will not be listed on any national securities exchange registered under Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
  • On the Effective Date, Reorganized Arch Coal will issue or reserve for issuance shares of New Common Stock for distribution in accordance with the Plan. Pursuant to the Plan, 25 million shares of New Common Stock will be issued to the holders of allowed claims on account of the First Lien Credit Facility and holders of allowed claims on account of Prepetition Notes, as discussed above under “Treatment of Claims.”  Reorganized Arch Coal will reserve for issuance the maximum number of shares of Class A Common Stock issuable upon exercise and settlement of the New Warrants (assuming all New Warrants are physically settled) and a sufficient number of shares pursuant to honor incentive awards to be granted under the Management Incentive Plan.
Amazingly, the stock is still trading for 40 cents.

Wednesday, September 21, 2016

Another "Market Failure" Caused by Government


I think the market for ownership of companies is incredibly corrupt in this country and many like it with similar tax and regulatory structures. The double taxation of dividends and the taxation of corporate income breed an environment where the most tax efficient way to maximize shareholder value is to retain earnings in the company to avoid dividend tax, and to spend these retained earnings on "growth" opportunities, usually acquisitions or risky skunk works ventures, to try to grow market value.

Tuesday, September 20, 2016

Correspondent Writes Regarding GHW Bush's Vote For Hillary

There is no practical difference between the Democrat Party and the Republican Party. Both are agents of the Rothschild/Federal Reserve/IMF loan shark operation.

The Democrat Party is a collection of groups distinguished by envy of high-functioning white men. None of these groups is in on the real purpose of the Democrat Party, which is to extend and protect the power of the Rothschild loan shark operation.

All of the rage against Trump and all of the anti-Trump coverage in mass media owned or controlled by the Rothschild operation is because Trump is busting up the Rothschild's sweet deal with the two political parties. He is depriving Republican Party hustlers of their base and assembling a coalition to beat the Democrat Party.

The Republican Party are the designated losers who seldom get friendly publicity in the Rothschild media. Its members are content with various hustles, tax write-offs, an occasional kind word, a chance to sell unneeded, poorly-designed, over-priced weapons to the armed forces, and more.

One of the best parts of this election is the chance to see Republican hustlers like George H. W. Bush out themselves as parasites of white people.

You probably don't know it, but George H. W. Bush was photographed at the scene of the assassination of JFK, at the time it happened.

Thursday, September 15, 2016

High Plateau Drifter Rides Again: Hillary's Parkinson's

High Plateau Drifter writes in,

The above video is a must watch. Hopefully, all of you will help it go viral.

But when you step back a moment from the narrow and obvious issue - namely Hillary's inability to cope with the duties of the office - numerous more serious issues and concerns arise about our political system and deep state control.

Why would anyone want to place in the oval office an aging 70 year old with a severe debilitating condition like late stage Parkinson's? We already have a president who spends over 180 days of the year away from the oval office playing golf or vacationing. He is obviously taking the word of staffers who set the presidential agenda and selectively feed him the information they want him to hear. Perhaps the people who really run the government liked having Obama as a figurehead president so much that a severely disabled 70 year old woman would be just the ticket for 8 more years of unaccountable and seamless control by unelected king makers.

But then perhaps we should elect the staffers who control the president, and whoever else within the deep state holds power over his or her selection.

In many respects, running Hillary for president is a clear fraud on the American people. It was never entirely clear in advance that Obama would be a passive figurehead. But with Hillary it is crystal clear and obviously pre-planned. The powers that be have known about her Parkinson's for at least four years. One wonders how much the Chicago billionaires - the Pritzgers and Arthur Crown - controlled Obama. But then sending their boy on permanent vacation begs a more disturbing and more obvious question. Why would a figurehead be of any use unless the billionaires also pick and control the staffers? What exactly does the plumbing of such control look like?

Elections are a public process. But control over staff is obviously a very private and secretive process. However if we have an active president who drives the agenda, he or she can control that process. However, if we have reached a such pass as a nation that presidents are selected for their total lack of interest or total incapacity, then we have lost all democratic control to unelected oligarchs.

Tuesday, September 13, 2016

Resolution to EXXI Creditor Dispute?

Some interesting provisions:

WHEREAS, on September 8, 2016, the Debtors, the first lien agent, the ad hoc committee of Second Lien Noteholders, the ad hoc committee of EGC Unsecured Noteholders, the indenture trustee for the EGC Unsecured Noteholders, the ad hoc group of EPL Unsecured Noteholders, the indenture trustee for the EPL Unsecured Noteholders, and the official committee of unsecured creditors attended an in-person settlement meeting during which no agreement was reached to amend the Plan;
WHEREAS, following the filing of the Disclosure Statement and the Plan, the Debtors, in consultation with the Independent Directors and their respective Boards, have continued to engage in extensive, good-faith, arms’ length negotiations with the Restructuring Support Parties on the terms of the Plan;
WHEREAS, as a result of these negotiations, the Parties decided to amend the Restructuring Support Agreement as set forth in this Amendment;


(c) Section 4(j) of the Restructuring Support Agreement is hereby deleted and replaced in its entirety with the following:
no later than October 13, 2016, the Bankruptcy Court shall have entered the Confirmation Order; and

(d) Section 4(k) of the Restructuring Support Agreement is hereby deleted and replaced in its entirety with the following:
no later than October 27, 2016, the Debtors shall consummate the transactions contemplated by the Plan (the date of such consummation, the “Effective Date”), it being understood that the satisfaction of the conditions precedent to the Effective Date (as set forth in the Plan and the Term Sheet) shall be conditions precedent to the occurrence of the Effective Date.


Each holder of an EXXI Convertible Notes Claim receives such holder’s Pro Rata share of, on the Effective Date, .2% of the New Equity under the Plan, subject to dilution by the Management Incentive Plan.


11.6% of the New Equity will be deposited into a trust (the “EGC Intercompany Note Trust”) and distributed in accordance with the EGC Intercompany Note Trust Distribution.


The Management Incentive Plan shall be capped at 5%.