Stone Energy filed with the U.S. Bankruptcy Court a Second Amended Joint Prepackaged Plan of Reorganization.
According to the Amended Plan, “Holders of Class 3 – Prepetition Notes Claims shall receive their respective Pro Rata share of (i) the Prepetition Notes Cash, (ii) the New Secured Notes and (iii) the number of shares of New Common Stock constituting ninety-five percent (95%) of the shares of New Common Stock to be issued and outstanding pursuant to the Plan on the Effective Date, prior to dilution for the Management Equity Incentive Program and the New Warrants.; provided, that in the event the Bankruptcy Court enters an order prior to the Effective Date appointing any official committee of equity security holders pursuant to 11 U.S.C. section 1102, the New Common Stock distributed pursuant to this Article III.C.3.(c) shall be increased to ninety-six percent (96%) of the shares of New Common Stock….Holders of Class 5 – Stone Equity Interests shall be canceled and shall be of no further force and effect, whether surrendered for cancellation or otherwise.”
In addition, “Each Holder of Stone Equity Interests that (x) submits a valid Release Opt-Out by the Equity Voting and Release Opt-Out Deadline and/or (y) objects to, delays, impedes, or takes any other action to interfere with the consummation of the Plan (any such action, an ‘Opposing Action’) shall receive no distribution on account of such Stone Equity Interests held by such Holder, and all shares of New Common Stock and New Warrants that would have been otherwise distributed to such Holders of Stone Equity Interests shall be distributed, Pro Rata, to those Holders of Stone Equity Interests that did not submit a valid Release Opt-Out and did not take any Opposing Action.”
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