Energy XXI equity holders granted official committee representation

By Caroline Salls

Pittsburgh, June 16 – The court overseeing Energy XXI Ltd.’s Chapter 11 bankruptcy case ordered the U.S. Trustee to appoint an official committee of equity security holders for the case, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, an informal committee of Energy XXI equity interest holders asked the court to order appointment of an official committee, arguing that the company has filed a plan and a disclosure statement that call for complete elimination of all equity interests, and “approval of the plan is currently on a fast track.”

“The members of the ad hoc equity committee are individual investors who do not have the means to contest total elimination of their investments,” the motion said.

“The only way for them to gain adequate representation is for the court to appoint an official equity holders committee, which can represent all of the equity holders and which must be paid for by the debtors.”

Energy XXI, an independent oil and natural gas development and production company based in Houston, filed for bankruptcy on April 14 under Chapter 11 case number 16-31928.

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