NEW YORK, April 22, 2015 /PRNewswire/ -- Bernstein
Liebhard LLP is investigating whether the Board of Directors of
Halcon Corporation ("Halcon" or the "Company") (NYSE: HK) breached
their fiduciary duties in connection with the proposed amendment of
a convertible note and warrants held by one of the Company's
largest stockholders, HALRES.
On March 30, 2015, Halcon filed a
Definitive Proxy Statement with the U.S. Securities and Exchange
Commission, which asked shareholders to approve a proposed
amendment of a Convertible Note and Warrants held by HALRES at the
upcoming annual shareholder meeting on May
6, 2015. The proposed amendment would extend the terms
of the Convertible Note and Warrants by an additional three years
(from 2017 to 2020) and, critically, reduce the conversion and
exercise prices from $4.50 to $2.44
per share. This would be a tremendous windfall for HALRES because,
due to the current depression of Halcon's stock price, a potential
conversion of the Convertible Note by HALRES at the $4.50 per share conversion price is unattractive
and the Warrants are a long way from being "in the money." In
addition, the Proxy Statement failed to disclose, among other
things: (i) the negotiations between a special committee of the
Company's board of directors and HALRES regarding the amendments;
(ii) what, if any, alternative arrangements were considered; and
(iii) the underlying analysis of the special committee's
advisor.
Halcon issued more adverse news relating to its debt situation
on April 21, 2015. On that
date, before the market opened, Halcon announced that it had priced
a $500 million private note
offering. That same day, after the market closed, Halcon
announced that it had increased the note offering from $500 million to $700
million.
If you currently hold Halcon shares and are interested in
discussing your rights, and/or have information relating to the
matter, please contact Joseph R. Seidman,
Jr. at (877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities,
consumer and shareholder rights cases and recovered over
$3 billion for its clients. The
National Law Journal has recognized Bernstein Liebhard for
twelve consecutive years as one of the top plaintiffs' firms in the
country.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2015 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 779-1414
seidman@bernlieb.com
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