Saturday, December 6, 2014

Quicksilver Resources Inc. Strategic Transactions Update $KWK

This was from a month ago:

"In September 2014, Quicksilver appointed John Little as Strategic Alternatives Officer pursuant to an engagement agreement between Quicksilver and Deloitte Transactions and Business Analytics LLP. Mr. Little reports to the Board and, in collaboration with Quicksilver’s management team, assists Quicksilver in exploring, evaluating and implementing strategic and tactical initiatives including the company's Combined Credit Agreements’ semi-annual redetermination, other matters involving the company's capital structure including the maturity of the Senior Subordinated Notes due 2016, the marketing of Quicksilver's assets and maximizing of liquidity in the present environment.

The company also retained Houlihan Lokey Capital, Inc. to lead a broad and more formalized process to market Quicksilver's assets. This process covers any or all of the company's operating assets and is flexible with regard to structure of any transaction proposal. The marketing process calls for receipt of bids in the fourth-quarter 2014, with a targeted closing date on any transaction in the ordinary course following successful execution of sales agreements, which aligns with the company's other strategic activities.

The company continues to explore several avenues to address its capital structure, including the stated and springing maturities. The company is in frequent discussions with certain of the security holders regarding possible paths to be undertaken."


Anonymous said...

Quicksilver Resources ($KWK) is a low hanging fruit.

Did you look at Quicksilver, Inc ($ZQK) as well, CP? It seems to be a juicier but higher-hanging fruit (if you're interested as to why, then skim the most recent seeking alpha article which details "Quiksilver's Margin Problem, Covenant Breach Risk, Increasing Cash Burn" and the next article regarding the company's capital structure). The Q4 earnings will be released after the NYSE closes tomorrow, so I would suggest giving this opportunity your full attention.

CP said...

Yes, it's funny that there are two nearly defunct Quicksilvers. (Actually, yours is "Quiksilver".)

Anonymous said...

Quicksilver restructured quicker than quiksilver: