CALGARY, ALBERTA–(Marketwired – June 2, 2017) – ROOSTER ENERGY LTD. (www.roosterenergyltd.com) (TSX VENTURE:COQ) announced today that all of its U.S. subsidiaries, Rooster Energy, L.L.C., Rooster Petroleum, LLC, Rooster Oil & Gas, LLC, Probe Resources US Ltd., Cochon Properties, LLC and Morrison Well Services, LLC (together, the “Company”) each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (the “Code”). The Company has requested that all cases be consolidated only for administrative purposes. Motions have also been filed for entry of interim and final orders: (i) authorizing post-petition use of cash collateral; (ii) granting adequate protection to pre-petition secured parties; (iii) modifying the automatic stay imposed by section 362 of the Code; (iv) scheduling a final hearing; and (v) granting related relief. The Company anticipates that it will file for recognition of any orders entered under Chapter 11 of the Code under the Companies’ Creditors Arrangement Act (“CCAA”).
The commencement of Chapter 11 reorganization proceedings follows previously disclosed discussions between the Company and the holders of its Senior Secured Notes to restructure the terms and conditions of the related Note Purchase Agreement. The Company and the holders of the Senior Secured Notes have been unable to reach agreement on these matters. The Company has been left without access to sufficient cash collateral, limiting the long-term ability of the Company to operate its businesses. It is the intention of the Company to continue to operate during the proceedings.
ABOUT ROOSTER ENERGY LTD.
Rooster Energy Ltd. is a Houston, Texas, based independent oil and natural gas exploration and production company focused on the development of resources in the shallow waters of the Gulf of Mexico and the delivery of well intervention services, including well plugging and abandonment.
Investors are welcome to contact the following for all corporate updates and investor inquiries:
|Kenneth F. Tamplain, Jr.|
|Chief Executive Officer|
|Rooster Energy Ltd.|
|16285 Park Ten Place, Suite 120|
|Houston, Texas, USA 77084|
|Telephone: (832) 772-6313|