Energy XXI committee asks court to vacate disclosure statement order

By Caroline Salls

Pittsburgh, Sept. 8 – Energy XXI Ltd.’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Southern District of Texas to vacate its order approving the disclosure statement for the company’s Chapter 11 plan, according to a motion filed Wednesday.

The committee said in the heavily redacted motion that recent revelations have been “extremely troubling,” and that a tactic being employed by the company “strikes the committee as an improper manipulation of the bankruptcy process in order to achieve a litigation advantage.”

“Notwithstanding the debtors’ attempts to brush aside the serious problems infecting their confirmation process, the Federal Rules of Bankruptcy Procedure provide a specific remedy where, as here, newly discovered material evidence is found,” the committee said in its motion.

Based on these rules, the committee said the disclosure statement order should be vacated “and solicitation on this unsupported proposed plan be immediately halted.”

As previously reported, the disclosure statement was approved in July. The plan confirmation hearing is scheduled for Sept. 21.

A hearing on the committee’s motion is scheduled for Sept. 13.

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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