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Storm Cat Energy Corporation's US Subsidiaries File for Chapter 11 Bankruptcy Protection in US
Storm Cat Expects to Continue Operations in Ordinary Course DENVER, and CALGARY, Alberta, Nov. 10...
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\nStorm Cat Expects to Continue Operations in Ordinary Course\n\n\n\nDENVER, and CALGARY, Alberta, Nov. 10 /CNW/ -- Storm Cat Energy\nCorporation (Amex: SCU; TSX: SME) today reported that all of its wholly-owned\nU.S. subsidiaries filed for a voluntary petition for reorganization under\nChapter 11 of the United States Bankruptcy Code in the United States\nBankruptcy Court for the District of Colorado. Storm Cat Energy Corporation\nwas not included in the U.S. bankruptcy filing, nor did it file an application\nfor creditor protection under the Companies' Creditors Arrangement Act in\nCanada.\n\n\nStorm Cat is in negotiations with its existing lenders to secure\nsufficient debtor-in-possession (DIP) financing. Under Chapter 11, and\nassuming the DIP financing negotiations are successful, Storm Cat expects it\nwill continue, without undue interruption, its operations in the ordinary\ncourse of business, and intends to file a reorganization plan with the U.S.\nBankruptcy Court as soon as practicable. As previously reported, the Company\nhas engaged Parkman Whaling LLC for the purpose of assisting the Company in\nexploring strategic business alternatives as well as Alvarez & Marsal, a\nturnaround and restructuring firm, for the purpose of assisting the Company\nwith its restructuring efforts.\n\n\nAbout Storm Cat Energy\n\n\nStorm Cat Energy is an independent oil and gas company focused on the\nexploration, production and development of large unconventional gas reserves\nfrom fractured shales, coal beds and tight sand formations and, secondarily,\nfrom conventional formations. The Company has producing properties in\nWyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration and\ndevelopment acreage in Canada. The Company's shares trade on the American\nStock Exchange under the symbol "SCU" and in Canada on the Toronto Stock\nExchange under the symbol "SME."\n\n\nForward-looking Statements\n\n\nThis press release contains certain "forward-looking statements", as\ndefined in the United States Private Securities Litigation Reform Act of 1995,\nand within the meaning of Canadian securities legislation, relating to\npotential future production and growth, proposed new wells and infrastructure\nimprovements affecting the Company's operations. Forward-looking statements\nare statements t...