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 Plan Effective

Stone Energy's Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on February 15, 2017. BankruptcyData's detailed Plan Summary notes, "Prepetition Notes Claims will receive its respective pro rata share of the Prepetition Notes Cash, the New Secured Notes and New Common Stock; provided, that in the event the Bankruptcy Court enters an order prior to the Effective Date appointing any official committee of equity security holders, the New Common Stock distributed will be increased, for a 36%--49% rate of recovery. General Unsecured Claims will be paid in full in cash, or otherwise receive such treatment as to render such Holder Unimpaired, for a 100% rate of recovery." Pre-petition stockholders are receiving 1 million new common shares, or an equivalent of an approximate 1-for-5.674558 reverse stock split (or 0.176263 new common shares for each 1 share of existing shares), representing 5% of the new common shares. Additionally, the pre-petition stockholders are receiving warrants to purchase 3,529,412 new common shares, or approximately 3.529412 warrants for each 1 new common share. The new common shares are scheduled to begin trading on the NYSE under the ticker symbol "SGY." The warrants will not be listed on an exchange at this time, but the Company currently expects to list the warrants on an exchange by the end of March 2017. According to a corporate release, upon emergence from bankruptcy, the Company eliminated approximately $1.2 billion in principal amount of outstanding debt, resulting in remaining debt outstanding of approximately $236.3 million, consisting of $225.0 million of 7.50% senior second lien notes due 2022 and approximately $11.3 million outstanding under a building loan. Pursuant to the Plan, as of the Plan's effective date, the terms of the Company's previous board of directors expired and a new board of directors was appointed. The new board of directors consists of seven members including Neal P. Goldman, John "Brad" Juneau, David Rainey, Charles M. Sledge, James M. Trimble, David N. Weinstein and David H. Welch. This oil and natural gas company filed for Chapter 11 protection on December 14, 2016, listing $1.4 billion in pre-petition assets.

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