- allowing Range shareholders to live on, albeit in a different form, but avoiding BK with the likes of AR and GPOR
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They wouldn’t have the winning bid in Ch11. Chances are big private equity money would out-bid COG in CH11, due to not having to deal with public investor blowback.
Plus, RRC would probably just re-organize such that bond holders take over the company.
So, they can do a stock swap now and live on, or give it to the bond holders.
Hahahahah... they will just pick this company up in bankruptcy.
Nobody cares about handing out golden parachutes to top executives, it’s done all the time....
- 1B debt + 3.1B debt, now 4.2B debt
- 96B EBITDA + 0.68B EBITDA, now 1.6B EBITDA
Now 2.5 Debt/EBITDA (at the bottom of a cycle)
Nearly 500K contiguous acres bolt on, 2nd most economic in Marcellus only to COG core.
RRC shareholders still keep a healthy share price upside, as gas and NGls rebound over 5 years.
I seriously doubt that Dan Dinges, CEO of Cabot, will take on RRC debt and trigger the payments due five senior Range executives under change of control provisions. These payments would exceed $20MM. It is difficult to believe these individuals are still employed and entitled to additional compensation based on the financial performance of the company over their ten year reign.