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Energy XXI Emergency Vacating Motion Filed

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Energy XXI’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion for an order vacating the Court’s July 18, 2016 order approving Energy XXI’s Disclosure Statement.

In a heavily redacted motion, the creditors assert, “The testimony recently provided by the Independent Directors clearly shows that various critical statements contained within the Disclosure Statement are not true. The Debtors’ inclusion of such untrue statements renders the Disclosure Statement materially misleading and threatens the overall integrity of the solicitation process commence with respect to the Proposed Plan.”

The motion continues, “The Bankruptcy Rules provide a specific remedy for addressing this type of problem. Specifically, Bankruptcy Rule 9024 incorporates Rule 60 of the Federal Rules of Civil Procedure, which provides, in relevant part, that ‘the court may relieve a party…from a final judgment, order, or proceeding for the following reasons: (2) newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether previously called intrinsic or extrinsic), misrepresentation, or misconduct by an opposing party;…or (6) any other reason that justifies relief.’ There are several independent bases upon which this rule may be employed. First, the aforementioned recent deposition testimony of the Independent Directors is ‘newly discovered evidence’ which the Committee could not have been aware of at the time of the hearing to consider approval of the Disclosure Statement.”

The Court scheduled a September 13, 2016 hearing on the motion. Read more energy bankruptcy news.

The post Energy XXI Emergency Vacating Motion Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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