WRD - Will Shareholders Survive Legacy Reserves Management?
Financially distressed Legacy Reserves (LGCY) has been in a tough spot for awhile. Management forced conversion of the preferred stock awhile back. The willingness to go to court over this issue should have demonstrated the severity of the financial situation. Now the resignation of some key officers and the classification of the bank line as current at more urgency to the situation. Those same officers were paid more than $13 million for their phantom shares while forfeiting nearly $8 million.
The company issued 1 million shares in exchange for about $2.6 million