Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Stone Energy Chapter 11 Petition, Plan Filed

Stone Energy and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 16-36390. The Company, which is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties, is represented by John F. Higgins, IV of Porter Hedges. Stone Energy announced that the filing was initiated in order to pursue a Prepackaged Plan in accordance with the Company's comprehensive balance sheet restructuring efforts. Concurrent with the Chapter 11 petition, the Company also filed with the Court a First Amended Chapter 11 Plan and related Disclosure Statement. The Disclosure Statement is dated November 17, 2016 and references the Company's Joint Prepackaged Plan of Reorganization, which was also filed with the Court. According to the Disclosure Statement, "The Restructuring will leave the Debtors' business intact and substantially de-levered, providing for the permanent reduction of at least a net $850 million of debt and a net $46 million of annual cash interest expense as a result of the extinguishment of the $775 million Senior Notes…and $300 million Convertible Notes…offset by the issuance of $225 million of New Secured Notes upon the completion of the Restructuring. This deleveraging will enhance the Debtors' long-term growth prospects and competitive position and allow the Debtors to emerge from their chapter 11 cases…as reorganized entities better positioned to withstand depressed oil and natural gas prices." A corporate release notes that Stone Energy believes it has adequate liquidity to maintain its operations in the ordinary course and does not intend to seek any debtor-in-possession financing during the pendency of the cases.

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