Court Approves Forcenergy Bankruptcy Plan
Forcenergy Inc. of Miami said its bankruptcy reorganization plan
was approved Oct. 22 by the United States Bankruptcy Court for the
Eastern District of Louisiana. A confirmation hearing is scheduled
for Dec. 13. On Nov. 16 the bankruptcy court extended the time
period for which only the company has the exclusive right to file a
plan of reorganization. No other plan has been submitted or can be
submitted during the company's exclusivity period.
The plan and ballots for voting to accept or reject the plan
have been distributed to creditors and shareholders. The current
deadline for voting requires ballots be received before 5 p.m. CST
Nov. 30. Additional plan packages are available from Andrews &
Kurth LLP and may be requested by fax at (713) 220-4285, Attention:
Inability to find a buyer for its "high-quality" Gulf of Mexico
properties pushed Forcenergy over the edge into Chapter 11
bankruptcy in March (see Daily GPI March 25). "We had a lot of
interest in [the properties] but no success in getting to closing,"
Chairman Stig Wennerstrom said during a March conference call.
"It's a soft market. It's a buyers' market out there, and, by the
way, these properties are not for sale anymore."
Forcenergy, which has current production of about 200 MMcf/d of
gas and 22,000 b/d of oil, is laden with debt. The company owes
$315 million from a $320 million credit facility as well as $50 to
$60 million of payables to vendors, some of which are overdue. On a
net basis, the company has $40 million of negative working capital.
Forcenergy's primary areas of operation are the Gulf of Mexico
and Cook Inlet, AK.
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