I received this notice from my broker the other day:
THE DELISTING OF THE COMMON STOCK OF ATP OIL & GAS, CUSIP 00208J108, HAS
TRIGGERED A FUNDAMENTAL CHANGE EVENT. AS A RESULT OF THE FUNDAMENTAL CHANGE, THE CONVERSION RATE HAS INCREASED TEMPORARILY TO THE RECEIPT OF TWENTY (20) SHARES OF COMMON STOCK FOR EACH ONE(1) SHARE OF PREFERRED CONVERTED."
Offer is good through 9/12/12"
I also read this in the prospectus:
In the event of our voluntary or involuntary liquidation, winding-up or dissolution, each holder of Series B Convertible Preferred Stock will be entitled to receive and to be paid out of our assets available for distribution to our shareholders, before any payment or distribution is made to holders of Junior Stock (including our common stock), a liquidation preference in the amount of $100.00 per share of the Series B Convertible Preferred Stock,
So here is the question. To tender or not to tender. Personally I own 600 preferred shares (my lost 2012 vacation money). If I accept the conversion I will have 12,000 common shares. I really don't care that I might be able to recoup an extra few hundred bucks by converting and selling. I have written the loss off. However if in the event that the company does make equity holders at least alive, I doubt seriously that that 12,000 common shares would ever be worth more than the 600 preferred. According to the prospectus at least I have to get $100 a share before the common gets 1 penny.
Think I will keep my preferred. Just curious on any other holder's thoughts.