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

To: Jurgis Bekepuris who wrote (56313)	12/1/2015 3:58:13 PM
From: E_K_S	1 Recommendation Recommended By Jurgis Bekepuris Respond to of 79146

Re: Swift Energy Co. (SFY) 7.125 % Maturity Date 06/01/2017 ------------------------- (Note: We may not be out of the woods. Wait until Friday to see if interest payment is reversed. Mine came through AMTD today) Yea, I saw mine too. 2 interest payments cover almost 20% of my original cost. I was looking at what HK did when they re-structured their debt. Halcón Resources Announces Offer to Exchange Outstanding Unsecured Debt Securities for New Second Lien Secured Notes This option may also be available to SFY rather than a debt for equity swap. HK issued a new second lien 'secured' note, extended the term by 2 years and increased the interest payment by 3% to 12%. If you agreed to the new deal you also received $20.00 per $1K consent payment. I would go w/ that. The key to the value proposition is (1) you bought original note at the right price (less than $0.50/100) and (2) company has good assets but it's only really a liquidity problem. Have not seen very many go to Chapter 11 but many w/ new debt offers and/or debt for equity swaps. My exposure only in two distressed debt issues: XCO & SFY. Investment small but I am learning a lot and can see how these hedge funds can hit a home-run if/when they get in on the right horse. EKS

To: Jurgis Bekepuris who wrote (56313)	12/1/2015 10:02:57 PM
From: E_K_S	Read Replies (2) \| Respond to of 79146

RE: SFY - Swift Energy skips interest payment on some notes Swift Energy (NYSE: SFY) says it will not to make an $8.9M interest payment due on its outstanding $250M principal amount of 7.125% senior notes due 2017, even though it has sufficient liquidity to do so. SFY says the skipped interest payment, due Dec. 1, is not an event of default but would become a default if payment is not made within 30 days. The full article is below: Senior Notes Interest Payment and Continues Negotiations With Bondholder Group ---------------------------------------------------------- Those interest payments posted today will be reversed out by Friday. Look for some proposal for debt/equity swap in the next 30 days. EKS

To: Jurgis Bekepuris who wrote (56313)	12/3/2015 1:46:09 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 79146

CHK notes and my comment in CoBF: finance.yahoo.com OKLAHOMA CITY, Dec. 2, 2015 /PRNewswire/ -- Chesapeake Energy Corporation (CHK) today announced the commencement of private offers of up to $1.5 billion aggregate principal amount (the "Maximum Exchange Amount") of its new 8.00% Senior Secured Second Lien Notes due 2022 (the "Second Lien Notes") in exchange for certain outstanding senior unsecured notes of the Company, upon the terms and subject to the conditions set forth in the Company's confidential offering memorandum and related letter of transmittal, each dated December 2, 2015. Yeah. That's what a bunch of companies do now. Both positive and negative. Positive that they push out the maturities, which benefits both equity and remaining notes (that they'd have to redeem/refi before 2022). Negative is that you have even senior (secured) notes in front of you if BK happens. Interest costs might be a wash (or even lower) depending on which notes are tendered. Also shows how the company values its notes right now. I have some unsecured 2020's. Not buying more. Probably not selling now either.