On Monday MDN brought you the news that Halcon Resources, a Utica Shale driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play (in Ohio) and currently doesn’t drill on any of that acreage, had gotten buy-in from most of the people to whom it owes $1.8 billion to turn that debt into ownership in the company (see Halcon Gets Majority Buy-in for “Pre-Packaged” Bankruptcy). What we didn’t know is that Halcon actually has $3.12 billion in debt–far more than they previously (publicly) acknowledged. We know that because yesterday Halcon filed their pre-packaged bankruptcy plan in Delaware federal bankruptcy court. The filing (copy below) lists $3.12 billion in debt and $2.85 billion in assets. Although the plan calls for existing shareholders to be issued new stock in the company, the reality is that those who were previously debtholders (not owners) will become the new owners, while existing shareholders’ new stock will be worth toilet paper…
On Monday MDN brought you the news that Halcon Resources, a Utica Shale driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play (in Ohio) and currently doesn’t drill on any of that acreage, had gotten buy-in from most of the people to whom it owes $1.8 billion to turn that debt into ownership in the company (see 