Offshore staff
NEW ORLEANS -- Energy Partners and certain of its domestic subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of Texas, Houston Division. EPL has reached an agreement with an ad hoc committee of the company's senior noteholders on the terms of a comprehensive financial restructuring that would substantially reduce the company's indebtedness and provide a long-term solution for its balance sheet. The company and its subsidiaries will continue to manage their properties and operate their businesses in the ordinary course throughout the Chapter 11 process while the company seeks confirmation of its reorganization plans under the jurisdiction of the bankruptcy court.
At the time of filing, EPL had in excess of $13 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 to the filing of the Chapter 11 Cases, EPL asked the bankruptcy court to consider several "first day" motions on an expedited basis benefiting its employees, vendors, and other service providers. The company intends, under the plan of reorganization, to pay all its vendors and other service providers in full, whether their claims arose prior to or after the filing of the Chapter 11 cases, and to continue paying its employees' salaries and benefits and to maintain its cash management systems.
The plan of reorganization is subject to confirmation by the bankruptcy court and the approval of the impaired classes. The company expects the bankruptcy court to enter a ruling on the plan of reorganization prior to Aug. 15, 2009.
Additional information about EPL's restructuring, including access to court documents and other general information about the Chapter 11 cases, is available at
http://chapter11.epiqsystems.com/EPL.
05/01/2009
