Bankruptcy Court Approves Stone Energy’s Reorg Plan

Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has (or rather had) a presence in the Marcellus/Utica Shale with 86,000 acres of leases. In December Stone filed for bankruptcy protection (see Stone Energy Files for Bankruptcy, Largest Shareholder Opposes). The plan, like most of these types of plans, hoses existing shareholders and hands the ownership keys of the company over to debtors instead, which Stone’s largest shareholder objected to. But apparently that shareholder getting something was better than getting nothing, and he worked out a deal with Stone, dropping his objection (see Stone Energy’s Largest Shareholder Caves, Agrees to Bankruptcy). Last week the bankruptcy court approved the sale of Stone’s Marcellus/Utica assets to EQT (see EQT Wins Bankruptcy Auction for 86K Stone Energy M-U Acres, $527M). Now comes word that the court has approved the rest of Stone’s plan…

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