EPL Successfully Emerges From Chapter 11
22 Settembre 2009 - 12:37AM
PR Newswire (US)
$473 Million of Debt Converted to Equity NEW ORLEANS, Sept. 21
/PRNewswire-FirstCall/ -- Energy Partners, Ltd. ("EPL" or, the
"Company") (Pink Sheets: ERPLQ) (NYSE:EPL) announced that its
Second Amended Joint Plan of Reorganization as modified as of
September 16, 2009 (the "Plan"), filed with the United States
Bankruptcy Court for the Southern District of Texas, became
effective today, marking EPL's emergence from its voluntary Chapter
11 restructuring. EPL also announced that it has entered into a $70
million credit facility led by General Electric Capital Corporation
that will be immediately available to provide the Company with
additional operating liquidity. "Today Energy Partners reached the
final milestone in what has been a very deliberate and successful
financial restructuring," said Alan D. Bell, Chief Restructuring
Officer. "By converting a substantial amount of our debt to equity,
we emerge from Chapter 11 with a much-improved capital structure.
Our enhanced financial flexibility, including our new exit
financing facility, will position us well within our industry. We
are pleased to have completed this process so quickly through close
collaboration with our stakeholders. The completion of our
financial restructuring is a testament to the strength of our
underlying business and we appreciate the unwavering support of our
employees and vendors through this process." The Company entered
into a $70 million senior secured credit facility with General
Electric Capital Corporation as administrative agent and two
financial institutions as lenders consisting of a $25 million term
loan and a three-year revolving credit facility with $45 million
available at closing. The Company also issued Senior Subordinated
Secured PIK Notes due 2014 (the "Notes") in an aggregate principal
amount of $61.112 million pursuant to an Indenture with The Bank of
New York Mellon Trust Company, N.A., as trustee. The Company
received net proceeds of $55 million at closing from the issuance
of the Notes. At the closing, the Company has drawn $25 million
under the revolving credit facility. In accordance with the terms
of the Plan, the holders of the Company's (i) 8.75% Senior Notes
due 2010, (ii) 9.75% Senior Unsecured Notes due 2014 and (iii)
Senior Floating Notes due 2013 collectively will receive their pro
rata share of 95% of the outstanding common stock in the
reorganized Company upon its emergence from bankruptcy, and the
existing stockholders in the Company will receive the remaining 5%,
in each case prior to any issuance of shares or options under
customary employee incentive arrangements. Under the Plan, EPL will
issue a total of 40 million shares of reorganized EPL common stock.
Current stockholders will receive approximately 0.06166332 shares
of reorganized EPL common stock per share of existing common stock
held, holders of the Company's 8.75% Senior Notes due 2010 will
receive approximately 82.04816992 shares of reorganized EPL common
stock per $1,000 in principal amount held, holders of the Company's
9.75% Senior Unsecured Notes due 2014 will receive approximately
84.55394278 shares of reorganized EPL common stock for each $1,000
in principal amount held and holders of the Company's Senior
Floating Notes due 2013 will receive approximately 81.76345569
shares of reorganized EPL common stock per $1,000 in principal
amount held. The reorganized EPL common stock will trade on the New
York Stock Exchange under the ticker symbol EPL, and the Company
anticipates that the reorganized common stock will begin trading
later this week. In addition to the 40 million shares to be issued
under the Plan, EPL has reserved 1.237 million shares for issuance
pursuant to the terms of its 2009 Long Term Incentive Plan. As
previously announced, in accordance with the terms set forth in the
Plan, unsecured creditors are to be paid in full for all allowed
prepetition obligations in cash. The Company anticipates making
these payments to unsecured creditors shortly. EPL has also
satisfied its obligations to the Minerals Management Service
("MMS"), due upon its emergence from bankruptcy. As a result, the
MMS' March 23, 2009 order has been rescinded and the Company is in
the process of restoring production at the federal portion of its
East Bay field. In conjunction with its emergence from Chapter 11,
EPL appointed a new Chief Executive Officer and Board of Directors
effective immediately. EPL has provided additional detail on these
appointments in a separate press release issued September 21, 2009.
Forward-Looking Statements This press release may contain
forward-looking information and statements regarding EPL. Any
statements included in this press release that address activities,
events or developments that EPL expects, believes, plans, projects,
estimates or anticipates will or may occur in the future are
forward-looking statements. We believe these judgments are
reasonable, but actual results may differ materially due to a
variety of important factors. Among other items, such factors might
include: -- our ability to retain and motivate key executives and
other necessary personnel while seeking to implement our plan of
reorganization; -- changes in general economic conditions; --
uncertainties in reserve and production estimates; -- unanticipated
recovery or production problems; -- hurricane and other
weather-related interference with business operations; -- the
effects of delays in completion of, or shut-ins of, gas gathering
systems, pipelines and processing facilities; -- oil and natural
gas prices and competition; -- the impact of derivative positions;
-- production expense estimates; -- cash flow estimates; -- future
financial performance; -- planned capital expenditures; and --
other matters that are discussed in EPL's filings with the
Securities and Exchange Commission. These statements are based on
current expectations and projections about future events and
involve known and unknown risks, uncertainties, and other factors
that may cause actual results and performance to be materially
different from any future results or performance expressed or
implied by these forward-looking statements. Please refer to EPL's
filings with the SEC, including Form 10-K for the year ended
December 31, 2008, Form 10-Q for the three months ended March 31,
2009, Form 10-Q for the three months ended June 30, 2009 and
Current Reports on Form 8-K, for a discussion of these risks.
Additional Information and Where to Find It Security holders may
obtain information regarding the Company from EPL's website at
http://www.eplweb.com/, from the Securities and Exchange
Commission's website at http://www.sec.gov/, or by directing a
request to: Energy Partners, Ltd. 201 St. Charles Avenue, Suite
3400, New Orleans, Louisiana 70170, Attn: Secretary, (504)
569-1875. Contacts T.J. Thom (504-799-4830) Energy Partners, Ltd.
Media: Joele Frank, Wilkinson Brimmer Katcher Jeremy Jacobs/Jed
Repko (212-355-4449) DATASOURCE: Energy Partners, Ltd. CONTACT:
T.J. Thom, Energy Partners, Ltd., +1-504-799-4830; or Jeremy Jacobs
or Jed Repko, Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449 Web Site: http://www.eplweb.com/
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