Lafayette-Based Oil Company To File For Bankruptcy
A new restructuring agreement signed by the operators of Stone Energy will force the company to file for Chapter 11 bankruptcy by the end of the year. According to a release from the company, the date of that filing must be by December 9th.
This puts to rest months of speculation that the Lafayette-based oil and gas company would enter restructuring. Company leaders confirmed in a release that it has been discussing the options for restructuring for some time. The agreement to restructure will also require the sale of the company's Appalachian Holdings.
The release reads in part:
"The execution of the (restructuring agreement) is the culmination of months of hard work to right-size our balance sheet in response to a sustained period of low oil and natural gas commodity prices," said David Welch, Chairman, President and Chief Executive Officer. "The agreement with our Noteholders will provide value to all of our stakeholders, improves our liquidity and better positions us to be profitable during a historically difficult time in our industry. Importantly, this agreement will allow all stakeholders to share in potential valuation growth if commodity prices improve."
Read the complete release HERE.
It is not known if or how the restructuring will affect local jobs in our area. We have reached out to the company for further comment.