Privately-held Shoreline Energy and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 16-35571.
The Company, which engages in the exploration, development, production and acquisition of oil and natural gas properties, is represented by Paul M. Green of Jones Day. Effective September 28, 2016, Frank D. Willoughby voluntarily resigned from his position as Shoreline Energy’s chairman and C.E.O. and Daniel P. Hurley was named as replacement for both roles.
According to documents filed with the Court, “After extensive good faith negotiations with Morgan Stanley and Highbridge, on November 2, 2016 the Debtors finalized an agreement on the terms of a restructuring as set forth in the Restructuring Support Agreement (the ‘RSA’)….In accordance with the RSA, the Debtors, affiliates of Highbridge and the Prepetition First Lien Lenders have agreed on the basic terms of a sale process…for substantially all of the assets of the Debtors and the terms of a chapter 11 plan of liquidation.”
Court-filed documents continue, “Among other things, the RSA provides that the Sale Process will provide for the sale of both core and non-core assets, and a partnership established by the HB Parent…will directly or indirectly acquire the assets as a stalking horse for the core assets.” Shoreline Energy’s Chapter 11 petition indicates total assets ranging between $100 and 500 million.
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