Magnum Hunter Investor: We’ll Sue to Stop Bankruptcy Filing

Dallas Salazar
Dallas Salazar

A developing situation with Magnum Hunter Resources (MHR). As you know, analysts we’ve read believe MHR is about to file for bankruptcy. In fact, MHR itself indicates bankruptcy is a very real (likely?) option, judging from comments they make in a recent filing they made with the SEC (see Dire Straits: Magnum Hunter Tells SEC Heading for Bankruptcy). However, one of MHR’s largest stockholders, Dallas Salazar, CEO of Austin, TX-­based Atlas Consulting, is telling MHR to hold on (see Activist Investor Threatens Magnum Hunter with Takeover Unless…). Salazar and a growing list of supporters will fight an MHR bankruptcy tooth and nail. Salazar has assembled a team of investors who will sue MHR should the company file for bankruptcy. Salazar’s legal team is the same team that previously (and successfully) sued Washington Mutual on behalf of shareholders. Salazar, in very frank language, has sent a letter to MHR management to let them know bankruptcy is not an option (see the letter below)…

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