Saratoga Resources: Wayzata objects to court order on plan deadline

By Lisa Kerner

Charlotte, N.C., Feb. 16 - Saratoga Resources, Inc. debtor Wayzata Investment Partners LLC for and on behalf of Wayzata Opportunities Fund LLC and Wayzata Opportunities Fund II, LP filed an emergency motion to vacate an order entered on Jan. 29, according to a Friday filing with the U.S. Bankruptcy Court for the Western District of Louisiana.

The motion was "filed in an abundance of caution in order to preserve Wayzata's position on exclusivity."

According to the filing, the court previously said it would allow the debtors the exclusive right to file a revised plan through Feb. 11 but failed to indicate that it was making a ruling on whether exclusivity had expired or on the debtors' pending third motion to extend exclusivity.

The court signed and entered a minute entry on Jan. 29 stating that if the plan was filed by Feb. 11, the exclusivity period will continue until the court rules on a further extension of exclusivity, the filing said.

Wayzata believes that the court did not have the power to reinstate the debtors' exclusivity period that terminated no later than Dec. 1 under the terms of a second exclusivity order.

In addition, Wayzata believes the minute entry "contravened Wayzata's due process rights to receive adequate notice of, and to formally challenge, the debtors' effort to reinstate exclusivity."

Saratoga, an Austin, Texas-based oil and gas exploration and production company, filed for bankruptcy on April 1, 2009. Its Chapter 11 case number is 09-50398.

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