Stone Energy filed with the U.S. Bankruptcy Court an emergency motion to approve the Company’s (i) entry into and performance under settlement agreement with Ridgetop Capital and (ii) the assumption and assignment of a settlement agreement in connection with the proposed sale of its Appalachia assets.
The motion explains, “In accordance with Bankruptcy Local Rule 9013-1, the Debtors respectfully request emergency consideration of this Motion. Specifically, the Debtors request that the Motion be heard at the hearing currently set in these chapter 11 cases for February 10, 2017, at 9:00 a.m. (prevailing Central time), which is the hearing regarding approval of the Debtors’ proposed sale of their Appalachia Assets. Emergency consideration of the Motion at such time is appropriate for two reasons. First, the Settlement Agreement concerns a dispute regarding certain of the Debtors’ property interests that are subject to the proposed sale, and the Settlement Agreement itself would be assumed and assigned to the purchaser of the Appalachia Assets, intimately tying resolution of that dispute and the consummation of the sale.”
In addition, “Indeed, Ridgetop communicated to the Debtors in advance of the objection deadline for the proposed sale that it would oppose such sale absent an acceptable resolution of its dispute. Second, the Debtors and Ridgetop finalized the terms of the Settlement Agreement only yesterday, after spirited, arms’ length negotiations. Importantly, the Settlement Agreement has the support of the Ad Hoc Group of Noteholders (as defined in the Beer Declaration) – the only impaired creditor constituency under the terms of the Debtors’ proposed plan for which confirmation is set for February 14, 2017. The Debtors, therefore, respectfully request that the Court approve the relief requested in this Motion on an emergency basis.”
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