Linn Energy LLC has completed its first exchange offer for the holders of soon-to-be worthless shares, who are trying to avoid a tax hit as the company moves toward a bankruptcy filing, the Wall Street Journal reported today. The Houston-based company focuses its exploration and production efforts throughout the U.S.Linn announced yesterday that 29 percent of outstanding Linn units, as they are known under the company’s tax structure, have been swapped for shares of Linn’s sister company LinnCo LLC. More than 103 million units were exchanged on a one-to-one basis for the LinnCo stock, which was trading below $1 a share yesterday and has received a delisting threat from Nasdaq. Linn also announced Tuesday that it was beginning a second exchange offer, this one to expire May 23, to allow more Linn unit holders to become LinnCo shareholders. Read more. (Subscription required.)
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