How to handle Ultra Petroleum reorganization and issuance of new stock 4-12-2017

Crenshaw

Ultra Petroleum Corp:  How to record the cancellation of old stock (UPLMQ) and issuance of new stock (UPL) after reorganization after bankruptcy.  My broker lists it as an exchange for.521562 shares of old.  I received 208 shares of UPL for 400 shares of UPLMQ, and fractional cash.  Same company name.

Quicken 2016 Premium
Windows 10

Thanks.

Vetta

First enter a sale of 400 shs UPLMQ for the total received in UPL shares PLUS the fractional amount. Then a buy entry of 208.521562 shs UPL for the same amount. Third, a sell entry of .521562 shs UPL for the fractional cash amount received.
You will then have 208 shs UPL at the correct price.

Quicken will record the first entry as either a cap gain or loss, which is likely ignored for tax purposes, so your cap gains/losses report may not be accurate for 2017 but your accounts will be.

Crenshaw

Wow.  Thx for the quick reply.  But a follow up:

The company name is the same but the stock symbol has changed.  Before I do the "buy" enty, do I need to go back and change the symbol for United Petroleum to "UPL."  Or do I need to create a "new" company, perhaps "United Petroleum 04/2017," with the new symbol?  

Vetta

You will need to create a new company and give it the new symbol. Frequently in such cases the company really does have a new name anyway (some minor change), hence the ticker change. Had the ticker not changed this could all have been done as a stock split.

NotACPA

Paul Guagliardo said:

Wow.  Thx for the quick reply.  But a follow up:

The company name is the same but the stock symbol has changed.  Before I do the "buy" enty, do I need to go back and change the symbol for United Petroleum to "UPL."  Or do I need to create a "new" company, perhaps "United Petroleum 04/2017," with the new symbol?  

Your cash was for the fractional share.  Because 400 old shares * .521562  comes tro 208.6248 shares.  Usually, companies will force sell the fraction and give you "cash in lieu".

AND, I think that I WOULD handle it as a reverse stock split ... and then just change the ticker afterward.  It really is the same company all along.

The reverse split would give you the 208+ shares ... and then you just sell the fraction.

In fact, I suspect that you held UPL stock (that ticker) before the company went into bankruptcy ... so you've alreay been thru a "ticker change" procedure.

Crenshaw

Paul Guagliardo said:

Wow.  Thx for the quick reply.  But a follow up:

The company name is the same but the stock symbol has changed.  Before I do the "buy" enty, do I need to go back and change the symbol for United Petroleum to "UPL."  Or do I need to create a "new" company, perhaps "United Petroleum 04/2017," with the new symbol?  

Thank you so much.  I'll see what happens.

Crenshaw

Thank you...again.