Energy XXI (EXXIQ) Announces Entry into Plan Support Agreement with Nearly All Creditor Constituencies
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Energy XXI Ltd (OTC: EXXIQ) announced that it has entered into a plan support agreement (the “plan support agreement”) with substantially all of the Company’s creditor constituencies, including holders of approximately 70% of the Company’s secured second lien 11.0% notes, the Official Committee of Unsecured Creditors, the ad hoc group of holders of certain unsecured notes issued by EGC and the ad hoc group of holders of certain unsecured notes issued by EPL. The restructuring contemplated by the plan support agreement is also supported by the Company’s first lien lenders and the indenture trustee for the Company’s senior convertible notes.
The Company has filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division an amended Plan of Reorganization (the "Plan") and related Disclosure Statement that incorporates and implements the agreement. The Company is seeking a hearing to approve the Disclosure Statement on November 14, 2016 and a confirmation hearing is scheduled to commence on December 8, 2016. The Company expects to complete the court-supervised process and emerge from Chapter 11 by the end of 2016.
“This plan support agreement significantly accelerates our financial restructuring process and reflects global consensus among our key creditors,” said Energy XXI’s Chief Executive Officer, John Schiller. “This agreement is the result of successful mediation and settlement discussions, and paves the way for Energy XXI to move forward with enhanced financial flexibility. In addition, we are pleased to note that under the terms of the plan support agreement, most of our trade vendors will receive nearly full recoveries. We thank our business partners, vendors and customers for their support and we look forward to continuing our relationships following our emergence.”
Schiller continued, “I would like to thank our employees for their dedication and commitment to working safely while ensuring that our production has remained on track throughout this process. We remain focused on completing this process as quickly as possible and executing on our business strategies and initiatives with our deleveraged balance sheet.”
In connection with the plan support agreement, John Schiller will continue to lead the Company in his role as Chief Executive Officer upon emergence.
The full terms of the plan support agreement are available in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016 that will be filed with the Securities and Exchange Commission.
PJT Partners LP is serving as Energy XXI’s financial advisor, Opportune LLP is serving as Energy XXI’s restructuring advisor, and Vinson & Elkins L.L.P. is serving as Energy XXI’s legal advisor.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Caterpillar (CAT) Offers FY17 Guidance Update at Credit Suisse Conference
- Delta Air Lines (DAL) Names New Chief Communications Officer
- Senseonics Holdings (SENS) Enters Expanded Distribution Agreement with Roche (RHHBY)
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Litigation
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!