Galaxy Energy requests two-month exclusivity extension

By Caroline Salls

Pittsburgh, Nov. 13 - Galaxy Energy Corp. requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Colorado.

The company wants to extend its exclusive plan-filing period to Jan. 12 from Nov. 13 and the solicitation period to March 16 from Jan. 12.

Galaxy said it has obtained a commitment for $15 million in exit financing and is in discussions for the sale of a small working interest to raise $3 million more.

In addition, the company said it has been in discussions with unsecured noteholders, and a significant portion of the noteholders has agreed to convert its debt under a proposed plan.

Galaxy said extending the exclusive periods will allow it to concentrate on the management of its business to enhance the success of its reorganization without the need to contest competing plans of reorganization.

Galaxy, a Denver-based independent oil and gas company, filed for bankruptcy on March 14, 2008. Its Chapter 11 case number is 08-13164.

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