Saratoga Resources ready to emerge, reorganization plan confirmed

By Lisa Kerner

Charlotte, N.C., April 20 - Saratoga Resources, Inc. announced that the U.S. Bankruptcy Court for the Western District of Louisiana, Lafayette Division, confirmed the company's third amended plan of reorganization.

The plan will become effective upon execution of new loan documentation relating to the restructured secured credit facilities and related documentation, according to a Saratoga news release.

The company said the plan was unopposed and 99.9% of the creditors voted to confirm the plan.

"We are anxious to go forward now with our development plan which will allow us to exploit the oil and gas resources under the company's leases, which in turn will allow us to perform under the plan and pay all creditors in full," said Saratoga chairman and chief executive officer Thomas F. Cooke.

As previously reported, under the plan:

• Payment on the Macquarie and Wayzata secured claim will include interest and attorneys fees and expenses and will be made in monthly payments in accordance with the credit agreement. Wayzata will also receive a warrant for up to $2 million shares;

• Holders of Oil Well Lien Act claims and other secured claims will receive payment for 80% of their claim on the plan effective date and 20% within 12 months of the effective date;

• Holders of general unsecured claims will be paid 75% of their claim on the effective date and the other 25% within 12 months;

• State lessor audit royalty claims will be paid in 24 monthly installments;

• Holders of non-warrant equity claims and warrants will retain their interests and warrants; and

• Interest on management note claims will be paid over 40 months, with the claim to be paid in full on the 40th month after the effective date.

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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