Aurora Oil & Gas announced that on July 12, 2009, Aurora and its subsidiary, Hudson Pipeline & Processing Co., LLC, filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Western District of Michigan.
The Companies will continue to operate their businesses as "debtors-in-possession" in accordance with sections 1107 and 1108 and other applicable provisions of the Bankruptcy Code, which require court approval of matters outside the ordinary course of business. No trustee, examiner, or official committee has been appointed.
The Companies have worked diligently to facilitate a global restructuring transaction, including entering into several amendments and forbearance agreements with BNP Paribas and the lenders under the Senior Secured Credit Facility and D.E. Shaw Laminar Portfolios, LLC and the lenders under the Second Lien Term Loan. The Companies have not yet been able to obtain agreement on the terms of such a restructuring and intend to utilize the bankruptcy process to attempt to achieve a consensual restructuring or some other appropriate alternative.
Huron Consulting Group, LLC ("Huron") continues to advise Aurora on its restructuring efforts, focusing on cost reduction and containment initiatives, streamlining the organization, and facilitating communication with its lender and other creditor constituencies.
Mr. Sanford R. Edlein, the Companies' Chief Restructuring Officer and a Managing Director with Huron, commented, "We hope to use Chapter 11 to facilitate a global restructuring of the Companies' debt obligations and expect to work on a consensual plan with the lenders to minimize our time in bankruptcy, while at the same time exploring other potential value-maximizing opportunities. Among other petitions for relief, the Companies have sought authority to make royalty payments and to satisfy other obligations of critical vendors. Ultimately, we hope to operate in Chapter 11 in the ordinary course as was done prior to this bankruptcy filing."
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