Hornbeck Offshore Services to File for Chapter 11 Bankruptcy in Pre-Packaged Restructuring Agreement

Maritime News
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I guess i could call my broker. But while im here, Is this a good thing? It sounds like down the road the company will survive.

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still wouldnt buy the stock. its a super levered oil play. If you’re long on oil just buy an energy basket.

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Bookie or broker?

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Morty may not be far behind. KPchief, you pm’d me ,I cannot find it.

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I am so over buying maritime stock, even my own company which sucked in the end. Only one I hold now is SFL. for the last decade or so, They may slap my ass too, so far,so good. Dividends have paid more than moneys invested. The gurus say never invest more than ten percent in your employers stock. Good advice.

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Dont need a Bookie, No Sports to bet on. Although I knew the Lightning would take the Cup this Year :upside_down_face:

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On the off chance that was a serious comment:

  • Yes, call your broker to sell any HOSS stock you have.

  • No, don’t call your broker to buy any HOSS stock. It’s already trading OTC, equity stockholders typically get wiped out on restructuring and the old ticker gets delisted completely. They plan to issue up to $100mil in new stock after the restructuring, if you believe in the companies survival down the road, buy that stock after the restructuring is complete.

For other comments, this seems like a nice contrast to the route taken by Bouchard. HOS has negotiated a prepackage restructuring ahead of time complete with interim funding for maintaining operations, and not skipping paychecks for their employees. From an outsiders perspective, it seems like having corporate leadership with some compassion for employees makes a difference. Any current HOS employees care to comment yea or nay?

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Well crap, To late to sell I might as well hold what i have and wait for a miracle. it sounded like a good deal 2 years ago, s.:frowning_face:

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Not with a ten foot pole.

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What’s happening with Hornbeck is already reflected in the price of the stock. Best strategy if you’ve been holding HOSS for a while is just hold on.

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No disrespect, but generally speaking this is inaccurate and horrible advice. To be clear, if you’re thinking of investing in a company entering bankruptcy proceedings, speak to a certified investment advisor. But even the SEC straight up says it “is likely to lead to financial loss.”

What’s happening “is reflected in the price of the stock” is only true in the sense that it is approaching zero.

Until the actual restructuring agreement is made public, we won’t know the fate of existing shareholders. However, if you review most other bankruptcy filings including Seadrill, Vantage, Tidewater, and other non-marine companies, you’d find that common stockholders get wiped out. There are several ways this happens:

  • The old ticker (in this case HOSS with two S’s) may or may not continue to trade OTC on Pink Sheets, but it will no longer be tied to or reflect the success of the company following bankruptcy.

  • The company may issue New Stock shares under a new or (with permission) under the original ticker (HOS with one S)

  • The New Stock shares primarily get issued to original Bond and Note holders since they had secured holdings pre-bankruptcy.

  • Original common stock holders will typically either get nothing, or may get an insignificant fraction of diluted New Stock shares in replacement for the totality of their pre-bankruptcy shares. Either way, this is usually close to getting nothing.

Again, until you read the filing you won’t know the fate of common shareholders. But “just hold[ing] on” to HOSS right now is historically not a fiscally responsible plan.

Edit: Just to add, I get that this sucks. I’ve held shares of companies that have gone bankrupt before, and I’ve ended up with nothing. It’s an inherent risk of owning common stock shares, it is by definition Unsecured.

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Well, if you liquidate the shares now you get 2 cents a share. Unless you’re holding a significant number of shares you get close to nothing. You’ve already lost all your money. Now, I would think the question is when is best to realize the loss for tax purposes.

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Thats a fair question. If you want to harvest the tax loss, and (importantly) have not purchased any shares in the last 30 days, you can sell it now. Then, if for some reason you believe there will be a benefit to still owning the shares, you can buy them back in 31 days from the sale and still be able to claim the capital loss on your taxes. Just mind the +/-30 day rule to avoid a Wash Sale.

https://www.fidelity.com/viewpoints/personal-finance/tax-loss-harvesting