According to the U.S. Bankruptcy Court docket, Swift Energy’s Second Amended Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on March 30, 2016.
Swift Energy’s C.E.O., Terry Swift, comments, “Through this restructuring, we have developed a more disciplined, efficient organization and greatly improved our balance sheet. Our noteholders’ continued support and willingness to invest in our company were critical to our emergence as was the agreement by our reserve-based lenders to provide the financing we needed to exit Chapter 11 and operate our business into the future.”
The Plan provides for conversion of the Company’s senior unsecured notes to equity, payment or satisfaction in full of most of its secured and unsecured creditors and distribution of equity and warrants in reorganized Swift to existing shareholders. Swift Energy’s D.I.P. lenders converted the entirety of their $75 million loan to equity and the Company’s bank group agreed to provide a $320 million reserve-based exit loan. Post-emergence, Swift Energy’s pre-petition senior note holders, contract rejection claim holders and D.I.P. participants hold 96% of the New Swift common stock while existing shareholders hold 4% of the New Swift common stock and receive warrants for an additional 30% of the New Swift common stock.
This independent oil and gas company filed for Chapter 11 protection on December 31, 2015, listing $2.2 billion in pre-petition assets. Read more Swift Energy bankruptcy news.