Debt | Debt Debt consisted of the following balances as of the dates indicated (in thousands): Successor Predecessor December 31, 2016 December 31, 2015 Principal Carrying Fair Principal Carrying Fair Exit Credit Facility (7) $ 16,651 $ 16,651 $ 16,651 $ — $ — $ — 13.50% Convertible Second Lien Term Loan (8) 41,170 30,554 29,036 — — — Senior Credit Facility — — — 27,000 25,387 27,000 8.0% Second Lien Senior Secured Notes due 2018 (2) (6) — — — 100,000 87,529 14,512 8.875% Second Lien Senior Secured Notes due 2018 (6) — — — 75,000 91,364 7,586 8.875% Senior Notes due 2019 (6) — — — 116,828 115,599 9,346 3.25% Convertible Senior Notes due 2026 (6) — — — 429 429 64 5.0% Convertible Senior Notes due 2029 (3) (6) — — — 6,692 6,692 67 5.0% Convertible Senior Notes due 2032 (4) (6) — — — 98,664 95,882 6,923 5.0% Convertible Exchange Senior Notes due 2032 (6) — — — 26,849 42,625 26,649 Total debt $ 57,821 $ 47,205 $ 45,687 $ 451,462 $ 465,507 $ 92,147 (1) The carrying amount for the Senior Credit Facility represents fair value as it was fully secured. The fair values of the notes were obtained by direct market quotes within Level 1 of the fair value hierarchy. The fair value of our Second Lien Notes and 2032 Exchange Notes were obtained using a discounted cash flow model within Level 3 of the fair value hierarchy. Level 1 and Level 3 of the fair value hierarchy are defined in this Item 8. (2) The debt discount was being amortized using the effective interest rate method based upon a two and a half year term through September 1, 2017, the first repurchase date applicable to the 8.0% Second Lien Notes. The $13.1 debt discount that existed when the Bankruptcy Petitions were filed on the Petition Date was written off to Reorganization items, net during the second quarter of 2016. The debt discount as of December 31, 2015 was $11.0 million . (3) The debt discount was amortized using the effective interest rate method based upon an original five year term through October 1, 2014. The debt discount was fully amortized as of December 31, 2014. (4) The debt discount was being amortized using the effective interest rate method based upon a four year term through October 1, 2017, the first repurchase date applicable to the 2032 Notes. The $1.7 million debt discount that existed when the Bankruptcy Petitions were filed on April 15, 2016 was written off to Reorganization items, net during the second quarter of 2016. The debt discount was $2.0 million as of December 31, 2015. (5) The carrying amount of debt is net of deferred loan costs of $5.1 million as of December 31, 2015. Deferred financing costs were amortized using the straight-line method through the contractual maturity dates for the Senior Credit Facility and the 2019 Notes, through the first put date of September 1, 2017 for the 8.0% Second Lien Notes and through the first put date of October 1, 2017 for the 2032 Notes. The $3.0 million of deferred loan costs for the 2019 Notes, 8.0% Second Lien Notes and 2032 Notes that existed when the Bankruptcy Petitions were filed on the Petition date was written off to Reorganization items, net during the second quarter of 2016. (6) Classified as Liability subject to compromise as of October 12, 2016. (7) The carrying amount for the Exit Credit Facility represents fair value as it was fully secured. (8) The debt discount is being amortized using the effective interest rate method based upon a maturity date of August 30, 2019. The principal includes $1.2 million of Paid-In-Kind interest. The carrying value includes $10.6 million of unamortized debt discount.The fair value of the notes was obtained by using a Binomial Lattice Model within Level 3 of the fair value hierarchy. The following table summarizes the total interest expense for the periods shown including contractual interest expense, amortization of debt discount, accretion and financing costs and the effective interest rate on the liability component of the debt (amounts in thousands, except effective interest rates). Period from October 13, 2016 through December 31, 2016 Period from January 1, 2016 through October 12, 2016 For the Year Ended December 31, 2015 Interest Effective Interest Effective Interest Effective Senior Credit Facility $ — — $ 3,342 — $ 4,308 5.1 % Exit Credit Facility 306 7.3 % — — — — % 13.50% Convertible Second Lien Notes 1,518 24.7 % — — — — % 8.0% Second Lien Senior Secured Notes due 2018 — — 936 * 11,515 16.4 % 8.875% Second Lien Senior Secured Notes due 2018 — — — — 2,333 * 8.875% Senior Notes due 2019 — — 3,107 * 21,668 9.2 % 3.25% Convertible Senior Notes due 2026 — — 4 * 13 3.3 % 5.0% Convertible Senior Notes due 2029 — — 97 * 335 5.0 % 5.0% Convertible Senior Notes due 2032 — — 2,382 * 12,495 8.6 % 5.0% Convertible Exchange Senior Notes due 2032 — — 1,484 * 2,088 * Other — — 46 * 52 * Total $ 1,824 $ 11,398 $ 54,807 * - Not meaningful The Chapter 11 Cases constituted an event of default that accelerated the Company’s obligations under all of its outstanding debt instruments. The agreements governing the Company’s debt instruments provided that as a result of the Bankruptcy Petitions, the principal and interest due thereunder was immediately due and payable. However, any efforts to enforce such payment obligations under the Company’s debt instruments were automatically stayed as a result of the Chapter 11 Cases, and the creditors’ rights of enforcement in respect of the debt instruments were subject to the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On October 12, 2016, upon the Company’s emergence from bankruptcy, the Second Lien Notes were exchanged for 98% of the common stock of the reorganized Company and the unsecured senior notes along with certain other unsecured claims were exchanged for 2% of the common stock of the reorganized company. The $40.4 million amount outstanding amounts under the Senior Credit Facility was paid down to $20.0 million with proceeds from the sale of the Convertible Second Lien Notes and cash on hand at closing. Senior Credit Facility As of October 12, 2016, we had $40.4 million outstanding under the Senior Credit Facility inclusive of the accrued default penalty. Following the reduction of the borrowing base to $20.0 million after the April 1, 2016 borrowing base redetermination, the Company had a borrowing base deficiency of $20.2 million . Pursuant to the terms of a cash collateral order entered in the bankruptcy proceeding on the Petition Date, interest was accrued and paid monthly based on a 2.25% margin which calculated to 5.75% per annum. Additionally, a post-default rate of 2.00% is accreted on the outstanding balance. Substantially all of our assets were pledged as collateral to secure the Senior Credit Facility. The Senior Credit Facility had a maturity date of February 24, 2017. The commencement of the Chapter 11 Cases on the Petition Date constituted an event of default that accelerated the Company’s obligations under the Senior Credit Facility. Additionally, other events of default existed which included, but were not limited to, the presence of an explanatory paragraph regarding the substantial doubt about our ability to continue as a going concern in the report of our independent registered public accounting firm that accompanied our audited consolidated financial statements for the year ended December 31, 2015. We were also not in compliance with the certain financial covenants under the terms of the Senior Credit Facility as of the 2016 quarter ends and at December 31, 2015. On October 12, 2016, in connection with the consummation of the Plan of Reorganization, the Senior Credit Facility was terminated. Exit Credit Facility On October 12, 2016, upon consummation of the Plan of Reorganization, the Company entered into an Exit Credit Agreement (the “Exit Credit Agreement”) with the Subsidiary, as borrower (the “Borrower”), and Wells Fargo Bank, National Association, as administrative agent (“the Administrative Agent”), and certain other lenders party thereto. Pursuant to the Exit Credit Agreement, the lenders party thereto provided the Borrower with a $20.0 million senior secured term loan credit facility, with an outstanding principal amount of $20.0 million . The maturity date of the Exit Credit Agreement is September 30, 2018, unless the Borrower notifies the Administrative Agent that it intends to extend the maturity date to September 30, 2019, subject to certain conditions and the payment of a fee. Until such maturity date, the Loans (as defined in the Exit Credit Agreement) under the Exit Credit Agreement shall bear interest at a rate per annum equal to (i) the alternative base rate plus an applicable margin of 4.50% or (ii) adjusted LIBOR plus an applicable margin of 5.50% . As of December 31, 2016, the interest rate on the Exit Credit Facility was 6.39% . The Borrower may elect, at its option, to prepay any borrowing outstanding under the Exit Credit Agreement without premium or penalty (except with respect to any break funding payments which may be payable pursuant to the terms of the Exit Credit Agreement). The Borrower may be required to make mandatory prepayments of the Loans under the Exit Credit Agreement if the total borrowings exceed the aggregate credit amounts, and if the Borrower is not in compliance with the Total Proved Asset Coverage Ratio (as defined in the Exit Credit Agreement) or the Secured Debt Asset Coverage Ratio (as defined in the Exit Credit Agreement). Additionally, if the Borrower has outstanding borrowings and the Consolidated Cash Balance (as defined in the Exit Credit Agreement and First Amendment and Consent to Exit Credit Agreement dated December 2016) exceeds (i) the sum of $27.5 million plus $21.3 million , which is calculated as the Equity Issuance Net Proceeds from the December 19, 2016 private placement of less $2.5 million , as the as of the close of business on the most recently ended business day on or before March 31, 2018 or (ii) $7.5 million as of the close of business on the most recently ended business day on or after April 1, 2018, the Borrower may also be required to make mandatory prepayments in an aggregate principal amount equal to such excess. Furthermore, the Borrower is required to make certain mandatory prepayments within one business day of (i) the issuance of any Equity Interests (as defined in the Exit Credit Agreement) of the Company, (ii) the consummation of any sale or other disposition of Property (as defined in the Exit Credit Agreement) and (iii) the assignment, termination or unwinding of any Swap Agreements (as defined in the Exit Credit Agreement). Amounts outstanding under the Exit Credit Agreement are guaranteed by the Company and secured by a security interest in substantially all of the assets of the Company and the Borrower. The Exit Credit Agreement contains certain customary representations and warranties, including organization; powers; authority; enforceability; approvals; no conflicts; financial condition; no material adverse change; litigation; environmental matters; compliance with laws and agreements; no defaults; Investment Company Act; taxes; ERISA; disclosure; no material misstatements; insurance; restrictions on liens; subsidiaries; location of business and offices; properties; titles, etc.; maintenance of properties; gas imbalances, prepayments; marketing of production; swap agreements; use of loans; solvency; sanctions laws and regulations; foreign corrupt practices; money laundering laws; and embargoed persons. The Exit Credit Agreement also contains certain affirmative and negative covenants, including delivery of financial statements; conduct of business; reserve reports; title information; collateral and guarantee requirements; indebtedness; liens; dividends and distributions; investments; sale or discount of receivables; mergers; sale of properties; termination of swap agreements; transactions with affiliates; negative pledges; dividend restrictions; gas imbalances; take-or-pay or other prepayments; and swap agreements. The Exit Credit Agreement also contains certain financial covenants, including the maintenance of (i) a Total Proved Asset Coverage Ratio (as defined in the Exit Credit Agreement) not to be less than 1.5 to 1.0 initially, and increasing to 2.0 to 1.0 on or after December 31, 2018, (ii) Secured Debt Asset Coverage Ratio (as defined in the Exit Credit Agreement) not to be less than 1.10 to 1.00 initially, and increasing to 1.35 to 1.00 after March 31, 2017 but before September 30, 2017 and 1.50 to 1.00 after September 30, 2017, in the case of clauses (i) and (ii), to be determined as of January 1 and July 1 each year and as of the date of any Material Acquisition (as defined in the Exit Credit Agreement) or Material Disposition (as defined in the Exit Credit Agreement), (iii) commencing with the fiscal quarter ending March 31, 2018, a ratio of Debt (as defined in the Exit Credit Agreement) as of the end of each fiscal quarter to EBITDAX for the twelve months ending on the last day of such fiscal quarter, not to exceed 4.00 to 1.00, (iv) limitations on Consolidated Cash Balance, (v) limitations on general and administrative expenses and (vi) minimum liquidity requirements. The Exit Credit Agreement also contains certain events of default, including non-payment; breaches of representations and warranties; non-compliance with covenants or other agreements; cross-default to material indebtedness; voluntary and involuntary bankruptcy; judgments; and change of control. As of December 31, 2016, we were in compliance with all covenants within the Exit Credit Agreement. 13.50% Convertible Second Lien Senior Secured Notes Due 2019 On October 12, 2016, the Company and the Subsidiary, entered into a purchase agreement (the “Purchase Agreement”) with each entity identified as a Shenkman Purchaser on Appendix A to the Purchase Agreement (collectively, the “Shenkman Purchasers”), CVC Capital Partners (acting through such of its affiliates to managed funds as it deems appropriate), J.P. Morgan Securities LLC (acting through such of its affiliates or managed funds as it deems appropriate), Franklin Advisers, Inc. (as investment manager on behalf of certain funds and accounts), O’Connor Global Multi-Strategy Alpha Master Limited and Nineteen 77 Global Multi-Strategy Alpha (Levered) Master Limited (collectively, and together with each of their successors and assigns, the “Purchasers”), in connection with the issuance of $40.0 million aggregate principal amount of the Company’s Convertible Second Lien Notes. The aggregate principal amount of the Convertible Second Lien Notes is convertible at the option of the Purchasers at any time prior to the scheduled maturity date into an amount of the Company’s common stock equal to 15% of the New Common Stock of the reorganized Company on a fully diluted basis. The Purchasers were also issued 10 -year costless warrants for common stock equal to 20% of the common stock of the reorganized Company on a fully diluted basis, received a second priority lien on all assets of the Debtors, and have the right to appoint two members to the Board. For additional information regarding the option to covert and the issuance of the ten year costless warrants, see Note 9. The Convertible Second Lien Notes will mature on August 30, 2019, or such later date as set forth in the Convertible Second Lien Notes, but in no event later than March 30, 2020. The Convertible Second Lien Notes bear interest at the rate of 13.50% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The Company may elect to pay all or any portion of interest in kind on the then outstanding principal amount of the Convertible Second Lien Notes by increasing the principal amount of the outstanding Convertible Second Lien Notes or by issuing additional Second Lien Notes (“PIK Interest Notes”). The PIK Interest Notes are not convertible. During such time as the Exit Credit Agreement (but not any refinancing or replacement thereof) is in effect, interest on the Convertible Second Lien Notes must be paid in-kind. The Indenture governing the Second Lien Notes contains certain covenants pertaining to us and our subsidiary, including delivery of financial reports; environmental matters; conduct of business; use of proceeds; operation and maintenance of properties; collateral and guarantee requirements; indebtedness; liens; dividends and distributions; limits on sale of assets and stock; business activities; transactions with affiliates; and changes of control. The Indenture also contains certain financial covenants, including the maintenance of (i) a Total Proved Asset Coverage Ratio (as defined in the Exit Credit Agreement) not to be less than 1.10 to 1.00 on or before March 31, 2017 initially and increasing to 1.35 to 1.00 after March 31, 2017 but on or before September 30, 2017 and 1.50 to 1.00 after September 30, 2017, to be determined as of January 1 and July 1 of each year; (ii) limitations on general and administrative expenses and (iii) minimum liquidity requirements. As of December 31, 2016, we were in compliance with all covenants within the Indenture that governs the Second Lien Notes. 8.0% Second Lien Senior Secured Notes due 2018 On March 12, 2015, we sold 100,000 units (the “Units”), each consisting of a $1,000 aggregate principal amount at maturity of our 8.0% Second Lien Notes and one warrant to purchase 48.84 shares of our $0.20 par value common stock. The 8.0% Second Lien Notes are guaranteed by our subsidiary that also guarantees our Senior Credit Facility. The 8.0% Second Lien Notes are secured on a senior second-priority basis by liens on certain assets of the Company and its subsidiary that secures our Senior Credit Facility, which liens are subject to an inter-creditor agreement in favor of the lenders under the Senior Credit Facility. The 8.0% Second Lien Notes were to mature on March 15, 2018 or on September 1, 2017, if certain conditions were not met. Interest on the 8.0% Second Lien Notes was payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2015. The 8.0% Second Lien Notes and the warrants became separately transferable on June 4, 2015 when a registration statement related to the resale of the warrants was declared effective by the SEC. The warrants were exercisable upon payment of the exercise price of $4.664 or convertible on a cashless basis as set forth in the agreement governing the warrants. We separately accounted for the liability and equity components of our 8.0% Second Lien Notes in a manner that reflected our nonconvertible debt borrowing rate when interest is recognized in subsequent periods. We measured the debt component of the 8.0% Second Lien Notes using a discount rate of 32% on the date of issuance. We attributed $78.7 million of the 8.0% Second Lien Notes relative fair value to the debt component, which compared to the face value results in a debt discount of $21.3 million . Additionally, we recorded $15.8 million within additional paid-in capital representing the equity component of the 8.0% Second Lien Notes. The debt discount has been amortized using the effective interest rate method. The $13.1 million unamortized debt discount that remained when the Bankruptcy Petitions were filed on the Petition Date was written off to Reorganization items, net during the second quarter of 2016. We also identified an embedded derivative associated with the 8.0% Second Lien Notes stemming from the length of time between the maturity date of March 15, 2018 and the put date of September 1, 2017. We valued the embedded derivative at $5.9 million using the discounted cash flow method on the date of issuance. The embedded derivative feature was recorded at fair value each reporting period with changes in fair value being reported as interest expense in the consolidated statements of operations. The $0.9 million fair value of the embedded derivative that existed when the Bankruptcy Petitions were filed on April 15, 2016 was reduced to zero during the second quarter of 2016. On October 12, 2016, the obligations of the Company with respect to the 8.0% Second Lien Notes were canceled and the holders receive common stock of the reorganized company pursuant to the Plan of Reorganization. 8.875% Second Lien Senior Secured Notes due 2018 On October 1, 2015, we closed on a privately-negotiated exchange agreement under which we retired, in two tranches, $158.2 million in principal of our 2019 Notes for $75.0 million in principal of 8.875% Second Lien Notes. The first tranche exchanged $81.7 million of 2019 Notes for $36.8 million of 8.875% Second Lien Notes. The second tranche exchanged $76.5 million of 2019 Notes for $38.2 million of 8.875% Second Lien Notes which also included the issuance of 38,250 warrants. Each warrant was entitled to purchase approximately 156.9 shares of our $0.20 par value common stock for $1.00 per share. The 8.875% Second Lien Notes are secured on a senior second-priority basis by liens on certain assets of the Company and its subsidiary that secures our Senior Credit Facility, which liens are subject to an inter-creditor agreement in favor of the lenders under the Senior Credit Facility. The new 8.875% Second Lien Notes had a maturity date of March 15, 2018 or earlier on August 1, 2017 if certain conditions were not met. Interest on the 8.875% Second Lien Notes was payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2016. We accounted for this transaction as a troubled debt transaction pursuant to guidance provided by FASB ASC section 470-60 “Troubled Debt Restructurings by Debtors”. We had determined that the prospective undiscounted cash flows from the 8.875% Second Lien Notes through their maturity did not exceed the adjusted carrying amount of the retired 2019 Notes, consequently a gain of $62.6 million was recognized for this exchange in 2015. Accordingly, on the date of the exchange, a carrying amount of $91.4 million was recorded as a liability and we recorded $2.5 million in additional paid in capital representing the fair value of the warrants issued. The carrying amount of the 8.875% Second Lien Notes was adjusted downward from $91.4 million to the $75.0 million principal amount when the Bankruptcy Petitions were filed on the Petition Date, with the $16.4 million gain recognized in Reorganization items, net on the Consolidated Statements of Operations in 2016. On October 12, 2016, the obligations of the Company with respect to the 8.0% Second Lien Notes were canceled and the holders receive common stock of the reorganized company pursuant to the Plan of Reorganization. 8.875% Senior Notes due 2019 On March 2, 2011, we sold $275 million of our 2019 Notes. The 2019 Notes were to mature on March 15, 2019, unless earlier redeemed or repurchased. The 2019 Notes are our senior unsecured obligations and rank equally in right of payment to all of our other existing and future unsecured indebtedness. The 2019 Notes accrued interest at a rate of 8.875% annually, and interest was paid semi-annually in arrears on March 15 and September 15. The 2019 Notes were guaranteed by our subsidiary that also guarantees our Senior Credit Facility. As described above, on October 1, 2015, we closed a privately-negotiated exchange under which we retired, in two tranches, $158.2 million in aggregate original principal amount of our outstanding 2019 Notes in exchange for the issuance of $75.0 million in aggregate original principal amount of our 8.875% Second Lien Notes and 38,250 warrants. Each warrant was entitled to purchase approximately 156.9 shares of our $0.20 par value common stock for $1.00 per share. Following this exchange, approximately $116.8 million aggregate original principal amount of the 2019 Notes remained outstanding. On October 12, 2016, the obligations of the Company with respect to the 2019 Notes were canceled and the holders receive common stock of the reorganized company pursuant to the Plan of Reorganization. 5.0% Convertible Senior Notes due 2029 In September 2009, we sold $218.5 million of our 2029 Notes. The 2029 Notes were to mature on October 1, 2029, unless earlier converted, redeemed or repurchased. We exchanged $166.7 million of the 2029 Notes for the 2032 Notes in 2013. On October 1, 2014, we repurchased $45.1 million of the 2029 Notes using restricted cash held in escrow for that purpose. The 2029 Notes were our senior unsecured obligations and rank equally in right of payment to all of our other existing and future unsecured indebtedness. The 2029 Notes accrued interest at a rate of 5.0% annually, and interest was paid semi-annually in arrears on April 1 and October 1 of each year. On October 12, 2016, the obligations of the Company with respect to the 2029 Notes were canceled and the holders receive common stock of the reorganized company per pursuant to the Plan of reorganization. 5.0% Convertible Senior Notes due 2032 As described above, we entered into separate, privately negotiated exchange agreements in which we retired $166.7 million in aggregate principal amount of our outstanding 2029 Notes in exchange for the issuance of the 2032 Notes in an aggregate principal amount of $166.3 million . The 2032 Notes had a maturity date of October 1, 2032. On September 8, 2015, we closed a privately-negotiated exchange under which we retired $55.0 million in aggregate original principal amount of our outstanding 2032 Notes in exchange for our issuance of a new series of 2032 Exchange Notes in an aggregate original principal amount of approximately $27.5 million . On October 14, 2015, we closed an additional privately-negotiated exchange under which we retired approximately $17.1 million in aggregate original principal amount of our outstanding 2032 Notes in exchange for our issuance of additional 2032 Exchange Notes in an aggregate original principal amount of approximately $8.5 million . As of September 30, 2016, $94.2 million in aggregate principal amount of the 2032 Notes remained outstanding. Unlike the 2029 Notes, the principal amount of the 2032 Notes accreted at a rate of 2% per year compounded semi-annually which commenced on August 26, 2013. The accreted portion of the principal was payable in cash upon maturity but does not bear cash interest and was not convertible into our common stock. Holders had the option to require us to purchase any outstanding 2032 Notes on each of October 1, 2017, 2022 and 2027, at a price equal to 100% of the principal amount plus the accretion thereon. No accretion expense has been recognized on the 2032 Notes subsequent to the Bankruptcy Petitions being filed on the Petition Date. We separately accounted for the liability and equity components of our 2032 Notes in a manner that reflects our nonconvertible debt borrowing rate when interest is recognized in subsequent periods. We measured the debt component of the 2032 Notes using an effective interest rate of 8% . We attributed $158.8 million of the fair value to the 2032 Note debt component which compared to the face results in a debt discount of $7.5 million which was being amortized through the first put date of October 1, 2017. Additionally, we recorded $24.4 million within additional paid-in capital representing the equity component of the 2032 Notes. A debt discount of $2.0 million remained to be amortized on the 2032 Notes as of December 31, 2015. The $1.7 million debt discount that existed when the Bankruptcy Petitions were filed on the Petition Date was written off to Reorganization items, net during the second quarter of 2016. On October 12, 2016, the obligations of the Company with respect to the 2032 Notes were canceled and the holders receive common stock of the reorganized company pursuant to the Plan of Reorganization. 5.0% Convertible Senior Exchange Notes due 2032 On September 8, 2015, we closed a privately-negotiated exchange under which we retired $55.0 million in principal amount of outstanding 2032 Notes in exchange for our issuance of approximately $27.5 million in aggregate original principal amount of 2032 Exchange Notes. On October 14, 2015, we closed an additional privately-negotiated exchange under which we retired approximately $17.1 million in aggregate original principal amount of our outstanding 2032 Notes in exchange for our issuance of additional 2032 Exchange Notes in an aggregate original principal amount of approximately $8.5 million . Many terms of the 2032 Exchange Notes remain the same as the 2032 Notes they replaced, including the 5.0% annual cash interest rate and the final maturity date of October 1, 2032. Like the 2032 Notes, the principal amount of the 2032 Exchange Notes accreted at a rate of 2% per year from August 26, 2013, compounding on a semi-annual basis. The accreted portion of the principal was payable in cash upon maturity but did not bear cash interest and was not convertible into our common stock. We accounted for these exchange transactions as troubled debt restructuring transactions pursuant to guidance provided by FASB ASC section 470-60 “Troubled Debt Restructurings by Debtors”. We had determined that the prospective undiscounted cash flows from the 2032 Exchange Notes through their maturity exceed the adjusted carrying amount of the retired 2032 Notes, consequently a gain on extinguishment of debt was not recognized for these exchanges. Accordingly, on the date of the September 8, 2015 exchange, a carrying amount of $45.2 million remained as a liability and we recorded $10.1 million to additional paid in capital representing the net fair value of the convert feature. On the date of the October 14, 2015 exchange, a carrying amount of $14.8 million remained as a liability and we recorded $2.5 million to additional paid in capital representing the net fair value of the convert feature. An annual discount rate of 1.3% and 1.4% , respectively, was being used to amortize the liability until maturity on October 1, 2032. During 2016, holders converted an aggregate amount of $32.4 million of 2032 Exchange Notes into our common stock. The carrying amount of the 2032 Exchange Notes was adjusted downward from $10.2 million to the $6.3 million principal amount when the Bankruptcy Petitions were filed on April 15, 2016, with the $3.9 million gain recognized in Reorganization items, net on the 2016 Consolidated Statements of Operations. On October 12, 2016, the obligations of the Company with respect to the 2032 Exchange Notes were canceled. and the holders receive common stock of the reorganized company pursuant to the Plan of Reorganization. 3.25% Convertible Senior Notes Due 2026 On October 12, 2016, the obligations of the Company with respect to the 2026 Notes were canceled and the holders have the right to receive common stock of the reorganized company pursuant to the Plan of Reorganization. |