Stone Energy provides update on Chapter 11 proceedings
Stone Energy announced resolution of a motion to appoint an equity committee, updated the status of the restructuring plan solicitation and announced the bankruptcy court's approval of Stone's First Day Motions. On December 16, an ad hoc group of certain of Stone's stockholders filed a motion to appoint an official committee of equity security holders in connection with the company's previously announced Chapter 11 proceedings. The settlement provides that the company will amend its First Amended Joint Prepackaged Plan of Reorganization to provide that Stone's existing stockholders will receive their pro rata share of 5% of reorganized Stone's common stock, vs. 4% as the previous plan, and warrants for ownership of 15% of reorganized Stone's common equity exercisable upon the company reaching certain benchmarks, vs. 10% in the previous plan. Stone will reimburse up to $1.0M of the Stockholder Ad Hoc Group's reasonable and documented out-of-pocket fees and expenses, and no member of the Stockholder Ad Hoc Group will object or otherwise contest the new plan. If an official committee of equity security holders is appointed by the U.S. Bankruptcy Court, then Stone's existing stockholders will instead receive their pro rata share of 4% of reorganized Stone's common stock, and warrants for ownership of 10% of reorganized Stone's common equity. The existing plan, as amended, remains subject to approval by the Court. The Court has previously determined that it would consider the confirmation of the amended plan on February 14, 2017. Stone commenced a solicitation of the Noteholders and the lendersfor acceptance of a restructuring on the terms of a pre-packaged plan of reorganization, and of the 94.24% of Noteholders in aggregate outstanding principal amount that voted, 99.95% voted in favor of such plan and .05% voted to reject such plan, and 100% of the Banks voted to accept such plan. All of Stone's First Day Motions filed in the Company's previously announced Chapter 11 proceedings were granted by the Court. Stone is scheduled for another court appearance on January 10, 2017, and the Court has scheduled the confirmation hearing for February 14, 2017.