VNR files for chapter 11 bankruptcy

For those that have followed along, you know me to be an investor in Vanguard Natural Resources.

Today they have requested chapter 11 bankruptcy. This is also known as reorganization. It’s a way to restructure existing debts and keep going, not dissolve the company. So I’m not panicking.

Price per unit is around $0.35 or about 10¢ on the dollar the price I invested. Frankly I wish I could get in at this price.

Nevertheless I’m long on VNR as in Warren Buffett long. I predict that ten years from now they will have recovered, dealt with much of their debt and be profitable again. Alas welcome to risk.

Stay tuned!

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