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Storm Cat Subsidiaries File For Chapter 11
The oil and gas driller is in negotiations with creditors to attain DIP financing.
November 16, 2008
The subsidiaries of Storm Cat Energy Corp., an oil-and-gas exploration-and-production company, filed for Chapter 11 bankruptcy protection last week in Colorado's bankruptcy court.
The parent company, a British Columbia entity that trades on both the Toronto Stock Exchange and the American Stock Exchange, was not included in the filing, which did name six of its subsidiaries, including Storm Cat Energy Powder River in Wyoming, Storm Cat Fayetteville in Arkansas, Triple Crown Gathering Corp and Storm Cat Energy (USA) Operation Corp.
The company continues to negotiate with its lenders to secure debtor-in-possession financing. Assuming that financing is attained, the company anticipates it will continue to operate its subsidiaries without “undue interruption.” Storm Cat will file a reorganization plan with the US Bankruptcy Court as soon as practicable, the filing says.
The company retained Lindquist and Vennum to represent all of the subsidiaries that filed, and Parkman Whaling LLC to serve as its investment bank and financial advisor. Attorneys from Lindquist And Vennum have represented Wells Fargo Bank in matters unrelated to Storm Cat.
According to the filing, the debtor has pre-petition secured bank indebtedness of $65 million and owes an additional $25 million to trade creditors. One of Storm Cat's senior lenders is Wells Fargo Foothill, LLC, an affiliate of Wells Fargo Bank.
The Powder River subsidiary owes its parent company some $91.5 million in inter-company obligations.
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