Lone Pine Requests Reorganization Plan Confirmation in U.S.

Lone Pine Resources Inc. is requesting U.S. Bankruptcy Court approval of its reorganization plan, contingent with its also receiving the Canadian bankruptcy court's blessing early next year, The Wall Street Journal reported. The company is scheduled to ask the Canadian court to approve its plan during a sanction hearing on Jan. 9. That approval will implement the plan in Canada, but it still would require U.S. court confirmation. Lone Pine is requesting that on Jan. 14, the U.S. Bankruptcy Court in Wilmington, Del., approve the sanction order from Canada, making the plan binding in the U.S. On Dec. 13, Lone Pine received a "meeting order" from the Canadian court, directing it to call meetings with creditors to vote on the plan, which it is doing now in anticipation of its sanction hearing next month. Lone Pine's plan of reorganization is a debt-for-equity swap that would allow Lone Pine to shed $195 million in bond debt. The plan would hand equity in the reorganized company to those bondholders and raise $100 million in new cash through a private rights offering. Current equity holders are being wiped out. Lone Pine filed for protection under the Canada's Companies' Creditors Arrangement Act, a law similar to Chapter 11 of the U.S. Bankruptcy Code, and for Chapter 15 bankruptcy in the U.S. in late September. Read more. (Subscription required.)