Monday, April 18, 2016

Goodrich Petroleum: Another One Bites the Dust

I've become so immune to smaller independents going bankrupt that when I read about Goodrich filing Chapter 11 last week, my first thought was, "didn't that already happen?"  Apparently I was thinking of GMX Resources.  Or Sabine.  Or Samson.  Or Penn Virginia.

The final collapse of Goodrich seems quite orderly, as debt holders (who are mostly hedge funds and private equity vultures who bought the debt at a steep discount) will convert their debt to equity to own the company and wait for some sort of recovery in the energy market.

Smart money wins again.

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