Endeavour wins court authorization to assume restructuring agreement

By Kali Hays

New York, Nov. 10 – Endeavour International Corp. received approval to enter a restructuring support agreement with holders of more than two-thirds of its notes, according to a Monday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the agreed restructuring aims to reduce Endeavour’s debt by $568 million and its annual interest cost by 43%.

Under the agreement, the existing notes will all be canceled and Endeavour will issue $262.5 million of new 9¾% notes to the holders of its existing 12% first-priority notes due 2018, $237.5 million of new 3½% convertible preferred shares to holders of its 12% first-priority notes and 12% second-priority notes due 2018, and common shares to holders of its 12% second-priority notes, 7½% convertible bonds, 6½% convertible notes due 2016 and 5½% convertible notes due 2016.

All of the existing equity, including common stock and preferred stock, will be canceled, and equity holders will receive no distribution.

Endeavour is a Houston-based oil and gas exploration and production company focused on the North Sea and the United States. The company filed for bankruptcy Oct. 10 under Chapter 11 case number 14-12308.

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