Halcon Resources Corp (NYSE:HK) has provided an update on its quarter earnings and restructuring plans. The balance sheet being pursued by the company is through Chapter 11 which is an accelerated packaged bankruptcy filing. The terms of the restructuring plan are still unchanged from what the Company had already disclosed to the public.
Halcón had on July 20, this year finished a solicitation asking for support from affected shareholders towards the restructuring plan. The results were positive as all the consent levels required for the consummation of Chapter 11 were achieved.
Stakeholders are willing
Around May 18 the Company announced that they had reached an agreement with on the terms of restructuring their balance sheet. By then the restructuring plan was to result in the elimination of a debt that amounted to approximately $1.8 billion and a Preferred Equity. At that time majority of the holders had shown willingness to support the restructuring plan which also included entering into a restructuring support agreement with a certain number of stakeholders affected.
The restructuring plan states that the stakeholders affected will get new common shares which will be issued. The company is having favorable earnings of recent. The signs are seen from the way analysts are giving great estimates just before the earnings. This is the best indicator. The estimates are as accurate as $18 cents for every share. This is a difference of $4 compared to Zacks Consensus of $14 cents per share.
When Zacks give a rank it has proven to be very reliable and powerful. They usually over perform in the market and mainly do so surprisingly. This has been so for the last decade. Their estimations always hold with a positive rate of 78% and they always have an annual return with an average of 28%.
Halcon Resources Corp (NYSE:HK) specializes in acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.