Forcenergy Inc. of Miami said its bankruptcy reorganization planwas approved Oct. 22 by the United States Bankruptcy Court for theEastern District of Louisiana. A confirmation hearing is scheduledfor Dec. 13. On Nov. 16 the bankruptcy court extended the timeperiod for which only the company has the exclusive right to file aplan of reorganization. No other plan has been submitted or can besubmitted during the company’s exclusivity period.

The plan and ballots for voting to accept or reject the planhave been distributed to creditors and shareholders. The currentdeadline for voting requires ballots be received before 5 p.m. CSTNov. 30. Additional plan packages are available from Andrews &Kurth LLP and may be requested by fax at (713) 220-4285, Attention:Ali Gallegos.

Inability to find a buyer for its “high-quality” Gulf of Mexicoproperties pushed Forcenergy over the edge into Chapter 11bankruptcy in March (see Daily GPI March 25). “We had a lot ofinterest 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 theway, these properties are not for sale anymore.”

Forcenergy, which has current production of about 200 MMcf/d ofgas 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 anet basis, the company has $40 million of negative working capital.

Forcenergy’s primary areas of operation are the Gulf of Mexicoand Cook Inlet, AK.

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