Saratoga Anticipates Exit from Bankruptcy by Year End
Saratoga Resources, an independent oil and gas exploration and development company with operations focused in the state waters of Louisiana, has announced confirmation of its Second Amended Plan of Reorganization (as amended) and its anticipated exit from Chapter 11 bankruptcy prior to the end of the year, just nine months after its bankruptcy filing.
Saratoga and its subsidiaries have reached an agreement in principle with their secured lenders regarding a financial restructuring for Saratoga, according to Company President, Andy Clifford. That agreement was incorporated into a Second Amended Plan of Reorganization as Modified, filed on November 25, 2009. That Plan was confirmed by Judge Robert Summerhays of the Western District of Louisiana on December 2, 2009. This plan sets the stage for Saratoga to exit from Chapter 11 with payment in full for all its creditors and preservation of the interests of all equity holders. Further details are available on the Company’s website listed above.
"Saratoga is deeply grateful for the support, participation and patience of all constituents involved in the bankruptcy case and for the sound and efficient guidance of our legal team led by our bankruptcy counsel, Adams and Reese, and our special oil and gas counsel, Paul J. Goodwine of New Orleans-based Schully Roberts, Slattery & Marino. With the imminent emergence from bankruptcy, we look forward to a bright and profitable future," said Clifford. "The Company's focus is on increasing production through low-cost workovers and recompletions, increasing reserves through field studies and development, and decreasing operating costs. We believe that these three metrics, independent of the volatility of oil and gas prices, enable value creation for our investors and lenders."
"This is an excellent result achieved within a relatively short period of time for a company coming out of bankruptcy, especially with all creditors being paid 100 percent of their allowed claims and the equity holders preserving their interests," said Robin Cheatham, practice group leader of Adams and Reese Commercial Restructuring and Bankruptcy Team.