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.”
In connection with the plan support agreement, John Schiller will continue to lead the Company in his role as Chief Executive Officer upon emergence.
The full terms of the plan support agreement are available in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016 that will be filed with the Securities and Exchange Commission.
PJT Partners LP is serving as Energy XXI’s financial advisor, Opportune LLP is serving as Energy XXI’s restructuring advisor, and Vinson & Elkins L.L.P. is serving as Energy XXI’s legal advisor.
Additional information is available on Energy XXI’s website at http://www.energyxxi.com/restructuring/ or by calling Energy XXI’s Restructuring Hotline, toll-free in the U.S., at (844) 807-7712. (For calls originating outside the U.S., please dial (503) 520-4464). In addition, court filings and other documents related to the reorganization proceedings are available on a separate website administered by Energy XXI’s claims agent, Epiq Systems, at http://dm.epiq11.com/EnergyXXI.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to the intent, beliefs, plans or expectations of the Company are based upon current expectations and are subject to a number of risks, uncertainties and assumptions. It is not possible to predict or identify all such factors and the following list should not be considered a complete statement of all potential risks and uncertainties relating to the bankruptcy filing by the Company and its subsidiaries, including, but not limited to: (i) the Company’s ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court in the Chapter 11 case, including maintaining strategic control as debtor-in-possession, (ii) the ability of the Company and its subsidiaries to negotiate, develop, confirm and consummate a plan of reorganization, (iii) the effects of the Company’s bankruptcy filing on the Company and on the interests of various constituents, (iv) the Bankruptcy Court rulings in the Chapter 11 case as well the outcome of all other pending litigation and the outcome of the Chapter 11 case in general, (v) the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the proceedings, (vi) risks associated with third party motions in the Chapter 11 case, which may interfere with the Company’s ability to confirm and consummate a plan of reorganization, (vii) the potential adverse effects of the Chapter 11 proceedings on the Company’s liquidity or results of operations, (viii) increased advisory costs to execute the Company’s reorganization, (ix) the impact of NASDAQ’s delisting on the liquidity and market price of the Company’s common stock and on the Company’s ability to access the public capital markets, (x) the uncertainty that any trading market for the Company’s common stock will exist or develop in the over-the-counter markets and (xi) other risks and uncertainties. These risks and uncertainties could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. For a more detailed discussion of risk factors, please see Part I, Item 1A, “Risk Factors” of the Company’s most recent Annual Report on Form 10-K and Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016 for more information. The Company assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
About the Company
Energy XXI is an independent oil and natural gas development and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The Company’s properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. To learn more, visit the Energy XXI website at www.EnergyXXI.com.