- Whiting's (NYSE:WLL) Board approved a shareholder rights plan to protect $3.4 billion in net operating loss carryforwards that could be used to offset taxable federal income.
- If there was an "ownership change," defined by 5% shareholders boosting their stake by more than 50%, the ability to use the NOLs would be limited. The rights plan seeks to reduce that possibility.
- Plan was not aimed at preventing actions the Board felt could be in the best interest of shareholders.
- Rights Plan to expire following the votings results of the 2021 annual meeting of shareholders, unless shareholders ratify the Section 382 Rights Plan before then. If so, the Section 382 Rights Plan will continue in effect until March 26, 2023