Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (56217)	11/14/2015 10:45:00 AM
From: E_K_S	Read Replies (2) \| Respond to of 79147

EXCO Resources Inc. (XCO) - I signed the consent solicitation I continue to receive the semi-annual 7.5% interest payments and now (w/ the consent payment) have my cost basis below that which was paid to the private equity firm that holds the new 'secured' debt ($0.50/100). Their borrowing base remains the same as stated in the consent solicitation but the secured debt holders do move in front of the line (in case of BK/liquidation). It looks like there is now an exit strategy for the company to pay down both the new secured debt and unsecured senior notes. The plan is once the new secured credit line is approved, there may be a 10:1 reverse split on the common shares. XCO could then offer a debt for equity exchange to the debt holders (unsecured & secured). The additional capital will be used to pay down debt and/or help re-capitalize all the outstanding debt. It is encouraging that Director Wilbur Ross continues to increase his common share holdings. See his new Buys nelow: Exco Resources Inc (XCO) Files Form 4 Insider Buying : John C Jr Wilder Buys 297,100 Shares Exco Resources Inc (XCO): John C Jr Wilder , director of Exco Resources Inc purchased 297,100 shares on Nov 9, 2015. The Insider buying transaction was disclosed on Nov 10, 2015 to the Securities and Exchange Commission. The shares were purchased at $1.06 per share for a total value of $315,401.38. ----------------------------------------------------- My value proposition is to hold my small unsecured notes until maturity (9/2018) and/or convert them into equity if/when a debt for equity offer is made. If they reverse split the common shares (10:1) and as part of that action they offer a debt for equity swap (secured/unsecured debt for new reverse split shares), I think both Wilbur, common shareholders and the debt holders will come out ok. At least I can see an exit strategy for this distressed debt position but it is not so clear for MHR and/or SFY. EKS