On Dec. 16, 2011, Delta Petroleum Corp. (PINK:DPTRQ) filed for a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Last Tuesday, the company announced it had sought court approval to make amendments regarding the bidding procedures for the company’s forthcoming auction to provide bidders with an option to buy common shares as a part of a reorganization plan. Since then, DPTRQ stock has resurrected on the charts.
Yesterday, DPTRQ gained 68% in value closing trade at $0.47 per share, its highest close since Dec. 8, 2011 when DPTR had not gone bankrupt yet. Approximately 1.6 million shares changed hands, setting a three-month record. Today, DPTRQ is still riding high on the chart. 90 minutes into the session, DPTRQ has gained 23% and shifted a volume of 1.43 million.
As it seems, the latest developments around DPTRQ’s plan of reorganization seem to resonate with stockholders’ expectations. If approved by the court today, the proposed amendments will extend the deadline for new bidding proposals to April 18.
Delta Petroleum Corp. specialized in exploring for oil and gas properties. The company carried its core business operations in the Piceance basin in the Rocky Mountains.
How will the whole reorganization process end up is still anyone’s guess. The company could either maintain its core business, or shift to an entirely different field.
