PostRock Energy Corp

3 Sept 2010capital raising announcement● NeutralMajor

Sold control to private equity: White Deer Energy put in $60 million for preferred stock paying a 12% compounding dividend, mandatory redemption in seven and a half years, and warrants that could take it to about 70% of the common at $3.15 a share. It was the rescue the over-levered post-merger balance sheet needed, but it made an outside fund both the company's largest owner and the holder of a redeemable claim ahead of every ordinary shareholder.

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12 July 2010material agreement▲ GoodMajor

Bought three more months on the $8 million revolver at the services subsidiary, pushing its maturity to October 2010, and separately agreed to settle the securities class actions and derivative suits arising from the Quest-era misconduct for about $1.4 million. The litigation left over from the Jerry Cash affair was finally being priced and closed out.

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10 June 2010debt financing▼ BadMajor

Three months after the merger closed, Royal Bank of Canada cut the borrowing base on the inherited Quest Cherokee credit facility to $125 million against $138.6 million drawn, leaving a $13.6 million shortfall to be repaid within weeks. The company said it would pay from cash on hand. The same borrowing-base mechanism, reset twice a year against gas prices and reserves, is what eventually forces the 2016 bankruptcy.

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10 Mar 2010business combination● NeutralMajor

The three-way recombination closed on 5 March 2010: Quest Resource Corporation, Quest Energy Partners and Quest Midstream all became subsidiaries of the new PostRock Energy Corporation, and trading began on Nasdaq as PSTR. Former Quest Midstream unitholders took 44% of the new company, Quest Energy unitholders 33% and Quest Resource shareholders just 23%, so the public company that emerged from the Jerry Cash misappropriation scandal and the 2005-2008 restatement was owned mostly by the pipeline side. David Lawler stayed as chief executive and Eddie LeBlanc as finance chief.

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5 Mar 2010listing compliance notice▲ GoodMajor

Nasdaq certified PostRock Energy Corp's securities for listing, clearing them to begin trading.

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