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Energy XXI Bankruptcy Plan Confirmed

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The U.S. Bankruptcy Court confirmed Energy XXI’s Second Amended Joint Chapter 11 Plan of Reorganization, which eliminates more than $3.6 billion of debt from the Company’s balance sheet.

Energy XXI’s president and C.E.O., John Schiller, states, “The Court’s approval of our Plan paves the way for us to complete this financial restructuring process and emerge as an even stronger company.” According to documents filed with the Court, “Under the Plan, …holders of Class 4 – EXXI holdings promissory note claims shall be reinstated; holders of Class 5 – first lien claims, on the effective date, or as soon thereafter as reasonably practicable, (i) all letters of credit issued under the first lien credit agreement other than the Exxon LCs shall be reinstated in accordance with their terms; holders of Class 6 – second lien notes claims shall receive its pro rata share of 84% of the new equity under the plan, subject to dilution by the management incentive plan and the new warrant package; holders of Class 7 – EGC unsecured notes claims shall receive such holder’s pro rata share of (a) 12% of the new equity under the plan, subject to dilution by the management incentive plan and the new warrant package and (b) the EGC new warrant package; holders of Class 8 – EPL unsecured notes claims shall receive such holder’s pro rata share of (a) 4% of the new equity under the Plan, subject to dilution by the management incentive plan and the new warrant package, and (b) the EPL new warrant package; holders of Class 9 – EXXI 3.0% senior convertible notes claims each holder of an allowed EXXI 3.0% senior convertible notes claims shall receive such holder’s pro rata share of $2,000,000; …holders of  Class 11 – general unsecured claims shall receive its pro rata share of the general unsecured claim distribution.”

This oil and natural gas property explorer filed for Chapter 11 protection on April 14, 2016, listing $4.7 billion in pre-petition assets.

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