Why Whiting Petroleum Stock Is Crashing Today
Shares of Whiting Petroleum (NYSE: WLL) tumbled as much as 51% on Wednesday and were down 23% at 1:30 p.m. EST. Weighing on shares of the oil producer was market speculation that the company would hire advisors to review its capital composition.
Whiting Petroleum has held discussions with advisor groups to review its capital structure, according to Debtwire and Bloomberg. The company is looking at the potential of an "up-tiering exchange," which would replace unsecured debt with newly issued secured debt like second lien notes. Companies use these types of exchanges to reduce debt outstanding, extend maturities, or avoid bankruptcy, according to credit rating agency Fitch.
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Source Fool.com
