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Linn Energy Question
Posted on 5/1/16 at 10:56 am
Posted on 5/1/16 at 10:56 am
What will stock do if and when they file chapter 11? Best way to profit on said scenario?
2
Posted on 5/1/16 at 11:06 am to Strannix
The stock holders owe the debt on the company since it's set up as an MLP.
Posted on 5/1/16 at 11:07 am to b-rab2
I mean it looks like a foregone conclusion at this point, how much lower can it go?
Posted on 5/1/16 at 3:10 pm to Strannix
well its .37 why dont you do long and find out how much lower it can go????
Posted on 5/1/16 at 3:14 pm to Strannix
You don't understand.. you will owe money.. the shareholders will have to pay the debt..
Posted on 5/1/16 at 4:11 pm to dabigfella
Thanks asshat
Posted on 5/1/16 at 4:15 pm to Strannix
Don't buy it.
Posted on 5/1/16 at 4:32 pm to cwill
quote:
cwill
you never answered my question the other day, why is BHP the worst operator?
Posted on 5/1/16 at 4:33 pm to b-rab2
Highest costs, worst well performance.
Posted on 5/1/16 at 4:34 pm to cwill
im sitting on a Shenzi well right now haha
Posted on 5/1/16 at 4:38 pm to b-rab2
Limited partners will have a tax consequence for forgiven debt.
Wouldn't their share of the debt be limited though?
Wouldn't their share of the debt be limited though?
Posted on 5/1/16 at 4:39 pm to Iowa Golfer
I'm not sure how it all works out. I was told by a relative that is very very high up in an MLP that if one goes bankrupt, you will be held liable since you are a "partner" and not so much a unitholder.
Posted on 5/1/16 at 4:43 pm to b-rab2
Limited partner, not a general partner. Not 100% sure, but pretty sure as they aren't responsible for the debt, only the general, or managing partners would be.
Having said this, they're on the hook for debt forgiven as ordinary income I believe.
Easier than understanding the minutia of tariffs as an example.
Having said this, they're on the hook for debt forgiven as ordinary income I believe.
Easier than understanding the minutia of tariffs as an example.
Posted on 5/1/16 at 4:54 pm to Iowa Golfer
I don't fully understand it either. I was just advised to sell if you think one is going under.
Posted on 5/1/16 at 6:55 pm to b-rab2
If you want to dabble in it, buy LinnCo. Same company with the shares structured as a c-corp. They recently allowed the MLP unit holders to swap into LinnCo to avoid the MLP tax ramifications of forgiven debt income allocations. I'm not suggesting you play in it, but there is an alternative to the MLP units.
Posted on 5/1/16 at 10:23 pm to txtiger79
So buy into a company that's sole asset is LINE shares, a company that will be filing for bankruptcy at any moment? 
Posted on 5/2/16 at 6:50 am to cwill
I didn't say to buy in. Just that there is a c-corp and an MLP route. If the OP wants to light his money on fire, that's up to him.
Posted on 5/2/16 at 7:14 am to txtiger79
I'm asking the best routes to short it, did anyone read the OP? Is the coming chapter 11 built into the current price? Will it go to zero?
Posted on 5/2/16 at 7:58 am to Strannix
Buy puts. At least you have a loss certain with this method.
Posted on 5/2/16 at 10:02 am to Strannix
LINE is about to be de-listed and bankrupt is pending...sounds like you missed the short opportunity.
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