Storm Cat Energy Corporation Subsidiaries File for Bankruptcy Protection

Storm Cat Energy Corporation announced that all of its wholly-owned U.S. subsidiaries filed for a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code, the International Business Times reported today. Storm Cat Energy Corporation was not included in the U.S. bankruptcy filing, nor did it file an application for creditor protection under the Companies' Creditors Arrangement Act in Canada. Storm Cat is in negotiations with its existing lenders to secure sufficient debtor-in-possession (DIP) financing. Under Chapter 11, and assuming the DIP financing negotiations are successful, Storm Cat expects it will continue, without undue interruption, its operations in the ordinary course of business, and intends to file a reorganization plan with the U.S. Bankruptcy Court as soon as practicable. The company has engaged Parkman Whaling LLC for the purpose of assisting in exploring strategic business alternatives as well as Alvarez & Marsal, a turnaround and restructuring firm, for the purpose of assisting with its restructuring efforts. Read more.