Lone Pine Resources CCAA plan approved, granted U.S. court recognition

By Caroline Salls

Pittsburgh, Jan. 10 - Lone Pine Resources Inc.'s Companies' Creditors Arrangement Act first amended and restated plan of compromise and arrangement was sanctioned and approved by the Court of Queen's Bench of Alberta, according to a company news release.

As previously reported, the plan provides for the conversion of all outstanding 10 3/8% senior notes due 2017 and other affected unsecured claims into new common shares, an offering of new preferred shares to eligible affected creditors to raise between $100 million and $110 million in new capital, and the cancellation of all outstanding shares of Lone Pine common stock.

The U.S. Bankruptcy Court for the District of Delaware recognized the sanction order on Jan. 10.

Lone Pine said it expects to implement the plan and complete its restructuring by Jan. 31.

According to the release, the sanction order also further extended the stay of proceedings against Lone Pine, its subsidiaries and its directors and officers to the earlier of the plan implementation date and Jan. 31.

Lone Pine, a Calgary, Alta., company engaged in the exploration and development of natural gas and light oil in Canada, filed for CCAA proceedings in the Court of Queen's Bench of Alberta and Chapter 15 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Sept. 25. The Chapter 15 case number is 13-12487.

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