Debt-laden Forcenergy Inc. of Miami Wednesday receivedconfirmation of its reorganization from the United StatesBankruptcy Court, Eastern District of Louisiana in New Orleans.

The plan is expected to become effective within 30 days providedvarious conditions are satisfied. The company’s reorganization planwas approved in October (see Daily GPI, Nov. 29).

Under the plan, registered owners of Forcenergy existing commonstock as of the end of business Jan. 28, 2000 will be issued apro-rata share of 960,000 shares of new Forcenergy common stock,warrants to acquire 240,000 new Forcenergy common shares at $16.67each, warrants to acquire 240,000 new Forcenergy common shares at$20.83. The warrants will have terms of four and five years,respectively. Holders of general unsecured claims, includingholders of the company’s senior subordinated notes, will receivepro-rata shares of 23,040,000 new Forcenergy common shares.

Currently, Forcenergy common shares are traded on the OTCBulletin Board under the symbol “FENYQ.OB.” Forcenergy expectstrading will cease on the Stockholm Stock Exchange (Sweden) andNASD (USA). Even so, the company has been informed that trading islikely to occur on the OTC Bulletin Board until the effective dateof the reorganization plan when the existing common stock will becanceled. Forcenergy has applied for a listing on the NasdaqNational Market under the symbol “FORC” and, assuming approval ofthe application, expects that the new Forcenergy common shares willbegin trading on the Nasdaq 20 to 30 trading days after theissuance of the new shares.

Forcenergy’s new common stock and warrants will not be listed onthe Stockholm Stock Exchange, nor will the SDR (Swedish DepositoryReceipts) program continue. Stockholders residing outside theUnited States should be able to trade the new Forcenergy commonstock through their existing brokers. The warrants issued to theholders of new Forcenergy common stock will not be listed on anyexchange.

Following the reorganization, Forcenergy will have 24 millionnew common shares outstanding. Forcenergy is an independent oil andgas company engaged in the exploration, acquisition, development,exploitation and production of oil and natural gas. Forcenergy’sprimary areas of operation are the Gulf of Mexico and Cook Inlet,AK.

Squeezed by weak commodity prices, Forcenergy was forced intoChapter 11 when it failed to find a buyer for its “high-quality” Gulfof Mexico properties, Chairman Stig Wannerstrom said in a Marchconference call (see Daily GPI, March25).

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