OK, the Zoo Has Gone Nuts: “Fraudulent” Press Release of Buyout Nearly Triples Stock of Soon-to-be-Bankrupt Oil & Gas Producer, Briefly

by Wolf Richter
Wolf Street

Who the heck bought those shares? Robinhood traders? And who placed this press release and cashed in on it?

Oil-and-gas producer Denbury Resources – which has $2.2 billion in long-term debt and is approaching bankruptcy, having disclosed on July 15 that it had failed to make an interest payment of $3 million on its Senior Subordinated Notes due in 2023 “in order to evaluate certain strategic alternatives,” thus triggering a 30-day grace period before “default” – saw its soon-to-be-worthless shares go through a wild ride today, starting premarket when they nearly tripled.

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