Stone Energy Files For Bankruptcy

(RTTNews) - Stone Energy Corp. (SGY), and its domestic subsidiaries or "Debtors", announced that they filed voluntary petitions under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas to pursue a pre-packaged plan of reorganization.

As previously disclosed, on November 17, 2016, the Debtors commenced a solicitation to seek acceptance by a majority of those voting in each voting class of claims of the Company's creditors under the Plan, including (a) the lenders under the Fourth Amended and Restated Credit Agreement, dated as of June 24, 2014, as amended, modified, or otherwise supplemented from time to time among Stone as borrower, Bank of America, N.A. as administrative agent and issuing bank, and the financial institutions named therein, and (b) the holders of the Company's 1 3/4% Senior Convertible Notes due 2017 and the Company's 7 1/2% Senior Notes due 2022.

Stone expects the solicitation period to end on December 16, 2016. Copies of the Plan, then in effect, and the disclosure statement related to the solicitation were furnished as Exhibit 99.1 to Stone's Current Report on Form 8-K filed on November 18, 2016.

Assuming implementation of the Plan, Stone expects to eliminate about $1.2 billion in principal amount of outstanding debt.