ATP Oil & Gas (ATPG) Slammed as Bondholders Start Taking the Offensive

July 27, 2012 10:00 AM EDT
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ATP Oil & Gas (Nasdaq: ATPG) shares are getting hit Friday following speculation the commodity producer/explorer might be in trouble with bondholders.

According to Bloomberg, a group of bondholders are forming a group following delay in payment of interest on held debt.

Production delays, market prices, missed output targets, and a thinning cash cushion are adding to ATP's inability to make interest payments.

About $1.5 billion of the 11.875 percent notes due May 2015 fell 0.5 cents to $0.3825 per dollar Friday, which was the lowest reading ever.

One bondholder said there has been no word from the company about payment, and it's either looking for ATP to enter bankruptcy or some sort of restructuring. The company hasn't issued a comment on such speculation yet.

Since hitting a high of $15.25 at this time last year, ATP's shares have fallen over 90 percent to about $1.50 Friday. Shares lower today by would mark eight straight losing sessions, something ATP shareholders are all too familiar with according to recent stock action.

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