Cobalt International Energy ($CIEIQ) Bankruptcy Update

As expected, the newly published plan of reorganization for Cobalt (one of the Distressed Watch companies) provides for no recovery for equity.

Class 10 – Interests in Cobalt
a.Classification: Class 10 consists of all Interests in the Cobalt.
b.Treatment: On the Effective Date, existing Interests in Cobalt shall be deemed canceled and extinguished, and shall be of no further force and effect, whether surrendered for cancelation or otherwise, and there shall be no distribution to holders of Interests in Cobalt on account of such Interests.

Regarding the timing of the case:

Pursuant to the Bid Procedures Motion, the Debtors currently expect that 5:00 p.m. (prevailing Central Time) on February 19, 2018 will be the final bid deadline for all Sale Transactions and an Auction, if needed, will be held at 10:00 a.m. (prevailing Central Time) on February 27, 2018.

Confirmation Hearing Date
March 30, 2018, at 9:30 a.m., prevailing Central Time

So the case may be moving pretty quickly.

The unsecured debt is trading for ~37 cents today. How's the stock doing? Up big, of course. Why wouldn't you want to own equity junior to the impaired debt?