Energy Partners Files Bankruptcy Plan
Company plans to seek plan confirmation at July 22 hearing and hopes to exit bankruptcy soon thereafter.
May 19, 2009
Energy Partners has filed a pre-packaged bankruptcy plan that will turn over 100% of the common stock of the reorganized company to bondholders of three tranches of notes, the New Orleans-based oil and natural gas provider said today.
According to the plan, bondholders of a total of $455 million of the company’s 9.75% senior unsecured notes due 2014, senior floating notes due 2013, and 8.75% senior notes due 2010 will get a pro rata share of 100% of the outstanding common stock in the reorganized company when it emerges from bankruptcy.
Secured debt holders will be repaid all of the outstanding $83 million in secured debt. Stockholders will receive warrants for 12.5% of the common stock of the reorganized company.
A hearing for approval of the company’s disclosure statement has been scheduled for June 10 with the U.S. Bankruptcy Court for the Southern District of Texas in Houston. The company said it plans to seek confirmation of the plan at a hearing scheduled for July 22 and hopes to exit bankruptcy soon thereafter.
The company filed for Chapter 11 bankruptcy protection on May 1, after reaching an agreement with more than 66.6% of the company’s outstanding 9.75% senior unsecured notes due 2014 and senior floating notes due 2013.
Energy Partners hired Parkman Whaling as its financial adviser. A company representative declined to comment.
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