Aurora Oil & Gas has provided an update on its bankruptcy proceedings related to Aurora and those of its subsidiary, Hudson Pipeline & Processing Co., LLC (together, the "Companies").
On July 13, 2009, the Companies filed various "first day" motions and applications. At a hearing before the Bankruptcy Court on July 15, 2009, to consider certain of those motions, the Companies obtained approval, among other things, of three key motions.
First, the Court entered what is commonly referred to as a "Cash Collateral Order" (specifically, the Interim Order (i) Authorizing the Debtors' use of Cash Collateral, (ii) Granting Replacement Liens, Adequate Protection and Administrative Expense Priority to Certain Prepetition Lenders and (iii) Scheduling a Final Hearing Pursuant to Bankruptcy Rule 4001). This order authorizes the Companies, among other things, to use its existing cash balances and cash in-flows for disbursements according to a budget.
Second, the Court entered the Interim Order on Motion for Establishing Notification and Hearing Procedures for Trading in Equity Securities. This order requires existing or potential substantial owners of the Company's stock to provide notice of holdings, and provide notice of potential sales or purchases, and it allows the Company, if the Court approves, to restrict, in specified circumstances, certain potential transactions by a substantial shareholder. Each substantial shareholder must provide advance notice of its intent to buy or sell common stock prior to effectuating any such purchase or sale. For these purposes, a substantial shareholder is defined as a person or entity that beneficially owns or, as a result of a purchase or sale transaction, would beneficially own, at least 4.5 million shares (including options to acquire shares) of the Company's common stock.
A hearing to consider approval of each of these Interim Orders on a final basis is presently scheduled for August 5, 2009, with any objections due by July 31, 2009.
Lastly, the Court entered the Order on Motion for Granting Authority to Limit Notice and to Establish Notice Procedures. This Order authorizes the Company to notify certain limited parties and set forth procedures by which to inform those parties of certain matters governed by Bankruptcy Rule 2002. Parties not included in the limited list of notice parties that wish to request notice must file a request pursuant to Bankruptcy Rule 2002.
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