Denbury Resources (DNR) (DNRCQ) appears set to emerge from bankruptcy soon after its restructuring plan was confirmed by the Bankruptcy Court. This plan will give second-lien noteholders most of the new equity in the company. Current shareholders will be left with Series B warrants equivalent to 2.5% of the new equity. The strike price for the warrants is roughly double Denbury's estimated post-restructuring price, which may end up in the high-teens if Denbury has 50 million post-restructuring shares.
Bankruptcy Case
Denbury's bankruptcy case has proceeded quickly. The company filed for bankruptcy