On Monday, April 19, 2010, the US Bankruptcy Court for the Western District of Louisiana, Lafayette Division, the Honorable Robert Summerhays presiding, confirmed Staratoga Resources Inc.’s Third Amended Plan of Reorganization.
The plan was sponsored by the company, its subsidiaries, the Official Committee of Equity Security Holders and Macquarie Americas Corp. The plan provides for, among other things, restructuring of the company’s existing secured credit facilities, including a reduction in the interest rate under the company’s term loan facility, payment in full for all trade creditors within 12 months of the plan’s effective date and equity retaining substantially all of their interests, with some dilution as the company is issuing both warrants and new stock to the creditors pursuant to the terms of the plan.
The plan will become effective upon execution of new loan documentation relating to the restructured secured credit facilities and related documentation.
Thomas F. Cooke, chairman and CEO said: "We are very satisfied with the results of the long and arduous path this bankruptcy proceeding has taken and we very much appreciate the support of our vendors and our lenders through the process. We are anxious to go forward now with our development plan which will allow us to exploit the oil and gas resources under the company's leases, which in turn will allow us to perform under the Plan and pay all creditors in full."
Cooke added: "We also want to acknowledge the help, guidance and able assistance of our bankruptcy counsel, Adams and Reese, LLP, and that of our oil and gas counsel, Slattery, Marino & Roberts, APLC, as the company navigated the bankruptcy and restructuring process."
Saratoga is an independent exploration and production company with offices in Houston, Texas, and Covington, Louisiana. Principal holdings cover 33,625 gross (32,527 net) acres, mostly held-by-production, located in the state waters offshore Louisiana.
Saratoga filed for protection under Chapter 11 of the US Bankruptcy Code on March 31, 2009.