No decent company will pay top dollar for assets owned by another in bankruptcy. CHK put themselves in this situation. The company needs to be completely liquidated and management put in prison for their lies. I personally haven’t seen where they (current management) in any way respects their “Core Values”. It’s a joke.
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If they can afford to hold on to those assets, sure they’d get more $ out of them IF the market rebounds in the next year. I think right now those assets are worth more to other operators than CHK (do we even have enough DIP financing to operate those assets? Probably not.), and such decisions may not even be up to management at this point. Big decisions like that are likely heavily influenced by the court and/or creditors. It’s likely less risk and more prudent, given our situation, to shed some assets. The company will have to shrink at some point.
Yes?
Liquidate midcon and Wyoming to what end? Wouldn't it be smarter to hold those and sell when the market rebounds next year? Or are they doing it to attempt to dismiss the bk?
They are trying to liquidate Midcon and Wyoming.
How did it go? What was the decision?