Emerald Oil eyes exclusivity extension amid lender sale of holdings

By Caroline Salls

Pittsburgh, July 20 – Emerald Oil, Inc. requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed July 19 with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Emerald wants to extend its exclusive filing period by 150 days through Dec. 19 and the solicitation period by 150 days through Feb. 15, 2017.

The company said the previous holders of its secured debt facilities recently sold their debt holdings to third parties, which are in the process of appointing a new agent and other representatives.

“This substitution of the debtors’ fulcrum creditor and only lender represents an important development in these Chapter 11 cases, and the debtors believe certain contingencies exist on account of this development alone that warrant an extension of the exclusivity periods,” the motion said.

In addition, Emerald said it is working with its stakeholders to negotiate and outline the terms and timeline of a sale and a Chapter 11 plan. The company said its ability to move forward with this process “would be seriously disrupted if another party were permitted to file a plan.”

A hearing is scheduled for Aug. 23.

Based in Denver, Emerald Oil is an oil exploration and production company that filed for bankruptcy on March 22 under Chapter 11 case number 16-10704.

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