Energy XXI Enters Into Comprehensive Plan Support Agreement With Key Creditor Groups

HOUSTON, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Energy XXI Ltd (OTC:EXXIQ) ("Energy XXI" or the "Company") today announced that it has entered into a plan support agreement (the "plan support agreement") with substantially all of the Company's creditor constituencies, including holders of approximately 70% of the Company's secured second lien 11.0% notes, the Official Committee of Unsecured Creditors, the ad hoc group of holders of certain unsecured notes issued by EGC and the ad hoc group of holders of certain unsecured notes issued by EPL. The restructuring contemplated by the plan support agreement is also supported by the Company's first lien lenders and the indenture trustee for the Company's senior convertible notes.

The Company has filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division an amended Plan of Reorganization (the "Plan") and related Disclosure Statement that incorporates and implements the agreement. The Company is seeking a hearing to approve the Disclosure Statement on November 14, 2016 and a confirmation hearing is scheduled to commence on December 8, 2016. The Company expects to complete the court-supervised process and emerge from Chapter 11 by the end of 2016.

"This plan support agreement significantly accelerates our financial restructuring process and reflects global consensus among our key creditors," said Energy XXI's Chief Executive Officer, John Schiller. "This agreement is the result of successful mediation and settlement discussions, and paves the way for Energy XXI to move forward with enhanced financial flexibility. In addition, we are pleased to note that under the terms of the plan support agreement, most of our trade vendors will receive nearly full recoveries. We thank our business partners, vendors and customers for their support and we look forward to continuing our relationships following our emergence."

Schiller continued, "I would like to thank our employees for their dedication and commitment to working safely while ensuring that our production has remained on track throughout this process. We remain focused on completing this process as quickly as possible and executing on our business strategies and initiatives with our deleveraged balance sheet."

If you liked this article you might like

Leaner Arch Coal Expected to Benefit From Higher Coal Prices, Low Valuation

Arch Coal, Fiat Chrysler Shares too Cheap to Fear Buying Now