There are rumors of banks being told not to mark energy loans to market on their books. Means things are a lot worse than expected in the entire sector. Go ahead, call me names and say I am this and that without doing your own research. But mark this post in your head. What you say on this post or what I say on this post doesn't move the needle. There are bigger things in play. Billions of dollars tied up in the banking system that's at the risk of getting marked down and endangering Tier 1 capital. That's what matters. Not anything you fools or I say on this post. That phone call from MUFG and Wells Fargo saying their revolver is being pulled or tightened is what keeps CHK's CEO up at night. If it doesn't, he's an idiot worried more about how to spend his millions in salary and not protecting the jobs of his employees or preserving and growing value for shareholders
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I am the OP - Evercore has a strong restructuring practice. It does debtor advisory work in (Chapter 11) and out of court. They do a lot of M&A but also Chapter 11 363 sales, so their retention doesn't mean anything except we know it's for debt reduction purposes. And one way to do that is through Chapter 11. And current management can stay on board through and post-Chapter 11 - with equity bonuses. That's what happens in Chapter 11's often. The adviser tells management that they can stay on board and exit bankruptcy at a sandbagged valuation with equity options struck at really low prices, so post-reorg they'll be easily in the money rather quickly. If the CEO has a golden parachute, that's another option as well, just to resign and take that, but if he doesn't have a golden parachute, getting equity (5-10%) in a post-reorg CHK has massive upside.
Sure let's invade Saudi Arabia and destabilize that region as well just to prop up the price of oil so energy companies can prosper. Talk about the solution being worse than the problem.
Do all of you not realize the company is going under? Evercore is an asset selling advisor... There's your sign!!!
Thank a democrat
He is working hard to make more money for himself
He's not working hard at all. DDD is busy folding his golden parachute.
Correct. Sell, sell, sell. Or find your portfolio down 30% +. The one exception is for those who wish to walk on hot coals and try to buy distressed O&G assets now with the hope to hold long and make money in say 2018. With Iranian oil flooding the market, good luck doing the latter.
It's true but no one wants to believe. The crisis will last well into 2017, there isa 1 million barrel a day of oversupply not counting the iranian oil. So unless there is an all out war in the middle east, this will be the year of bankruptcy, more layoffs and dead stock market.