Nelly Shishkova

Cano Petroleum, Inc. (PINK:CANO) Crashes Down on Bankruptcy

by Nelly Shishkova March 9, 2012
The situation for Cano Petroleum, Inc. (PINK:CANO) has been rather disturbing lately. Yesterday, the stock price crashed downCANO_chart.png 69.17%, on a traded volume that exceeded 6 million shares.

No wonder that Cano has filed for bankruptcy along with its units, as its continued losses and loan defaults prevented the company from raising capital.

The news came up yesterday when Cano and its subsidiaries reported their intention to ask the Bankruptcy Court for the Northern District of Texas to approve a marketing process in which NBI Services Inc would be appointed as a "stalking horse" bidder.

In case the process gets approved, NBI will make the first bid for CANO assets, or the amount for the reorganized company will be distributed to creditors.

Obviously, the bankruptcy news hit investors at once and CANO stock price rushed down. Now the question is, what its next move is going to be.

CANO_logo.jpgCano Petroleum, Inc. is a Texas-based oil and gas producer. In mid-February, the company filed a notification of late filing related to its quarterly results. However, the incurred losses led CANO to bankruptcy and the only option left for investors is to wait for the Court's final decision.

In the meantime, the company's negative working capital and long-term debt remain uncovered.

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