Gastar Exploration Inc.

22 Jan 2019listing compliance notice▼ BadMajor

Gastar Exploration Inc. terminated the registration of a class of securities, ending its reporting obligation for them.

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28 Dec 2018bankruptcy or receivership▼ BadMajor

On December 20, 2018 the bankruptcy court confirmed Gastar's amended prepackaged Chapter 11 plan; the plan takes effect once its conditions are met, and the filing says this is not yet certain. Existing common holders other than Ares share $150,000 in cash and their shares are cancelled, leaving Ares and its affiliates as sole stockholder; preferred holders share $150,000 and are cancelled. One preferred holder may elect by January 4, 2019 to take warrants for less than 1% of the new common equity instead. The term loan and convertible note claims convert into the new common equity and a second lien exit facility, and the hedge claims are paid in full in cash. The market check opened in November is not mentioned as producing a different outcome.

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18 Dec 2018bankruptcy or receivership▼ BadMajor

On December 12, 2018 Gastar filed a modified plan that replaces the earlier warrant recovery for existing shareholders with cash: preferred holders share $150,000 and common holders (excluding Ares) share $150,000, and those shares are cancelled. This is worse for shareholders than the earlier plan terms, which offered warrants for 2.5% of the new equity to common holders and 2.5% to preferred holders. Gastar warns that trading prices may bear little relation to actual recovery.

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16 Nov 2018material agreement● NeutralMajor

On November 16, 2018 Gastar and the Ares-affiliated parties amended the October 26 restructuring support agreement so the company can run a market check and look for buyers of the whole company or substantially all its assets. Gastar sent bidders a process letter asking for all-cash proposals, with a bid deadline of December 17, 2018, and the court set the plan confirmation hearing for December 20, 2018 (objections due December 17). This opens a possible alternative to the Ares-led plan; the filing says the company will seek confirmation of the plan unless it receives a bid it deems higher or better.

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1 Nov 2018bankruptcy or receivership▼ BadMajor

On October 31, 2018, Gastar and a subsidiary filed a prepackaged Chapter 11 case in the Southern District of Texas under a Restructuring Support Agreement signed October 26 with Ares affiliates. This resolves the strategic-alternatives search and the delisting and default risk of the preceding months. All voting classes accepted the plan, including 100% of term lenders and second-lien noteholders. Under the plan the term loan and convertible notes are swapped for a $200M second lien exit facility and 100% of the new common equity, and the company receives $100M of new money. Existing common holders get only warrants for 2.5% of the new equity, and Series A and B preferred holders share warrants for another 2.5%, both conditional on not opposing the plan. Existing common equity is cancelled, and Gastar itself warns equity holders could see a significant or complete loss.

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14 Sept 2018listing compliance notice● NeutralMajor

Gastar Exploration Inc.'s exchange filed to remove a class of its securities from listing.

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14 Sept 2018listing compliance notice● NeutralMajor

Gastar Exploration Inc.'s exchange filed to remove a class of its securities from listing.

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14 Sept 2018listing compliance notice● NeutralMajor

Gastar Exploration Inc.'s exchange filed to remove a class of its securities from listing.

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6 Sept 2018listing compliance notice▼ BadMajor

On September 6, 2018, NYSE American suspended trading in Gastar's common stock and both preferred series because of the abnormally low price, as the August warning had flagged. The securities are expected to be quoted on the OTCQB from about September 7, and the exchange intends to start delisting. The company is reviewing whether to appeal while its search for third-party proposals continues. A delisting would let convertible noteholders demand repurchase at 101%, which could set off defaults and acceleration of the Ares term loan.

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