Edge Petroleum (EPEX) Soars on Chapter 11 Ruling
Edge Petroleum Corporation's (Nasdaq: EPEX) shares are up $0.0914, or 133%, to 0.17 in afternoon trading today.
Edge today announced the approval of all of its first-day motions by the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division.
Edge submitted a number of motions requesting approvals and received, among other things, authorization to continue to pay pre-petition and post-petition claims of certain suppliers, lien holders, pump operators, and royalty owners. The company filed for Chapter 11 on October 1, 2009.
The Court also granted interim approval for Edge to maintain its cash management systems and for the use of its cash collateral. At the time of filing, Edge had in excess of $12 million in cash on hand. As it proceeds with its financial restructuring, the Company expects, based on current commodity prices, that its cash on hand and cash from operating activities will be adequate to fund its projected cash needs, including the payment of operating costs and expenses.
In addition, the Court granted the Company's motion for authority to sell the stock of its subsidiaries (which comprise substantially all of the Company's assets), to establish bidding and auction procedures pursuant to Bankruptcy Code Sections 105, 363, 365 and 1123(b), designating its proposed purchaser as the "stalking horse bidder" and approving the related break-up fee and expense reimbursement.
The Company's lead Chapter 11 petition has been assigned case number 09-20644 (RSS).
Edge Petroleum Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of crude oil and natural gas resources in the United States.
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