GMX Resources (GMXR) files for Chapter 11 bankruptcy protection after failing to find any viable funding solution to meet its long-term liquidity needs. GMX obtains a commitment for debtor-in-possession financing from its principal senior secured noteholders which will provide up to $50M of additional financing to fund operating expenses.
GMX Resources (GMXR) -13.9% AH after delaying its 10-K filing and saying it may seek bankruptcy protection if it is unable to reach agreement with senior debt holders in a way to restructure its finances.
GMX Resources (GMXR) -27.7% premarket after receiving a non-compliance notice from the NYSE for failure to reach $50M in market cap for 30 consecutive trading days. GMXR now has 45 days to submit a plan showing how it intends to comply with the NYSE's continued listing standards.
Today's plunge in GMX Resources (GMXR -21.2%) caps a 60% collapse in shares since the company's Feb. 19 production update. Its turnaround strategy has hinged on Bakken production, but it hasn't been enough; an even bigger worry is the liquidity crisis which appears to lie ahead, as GMX said it had just $46M cash on hand. For investors, today's hiring of a financial adviser looks like the last straw.