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Stone Energy wins approval to list new common stock under same symbol
By Caroline Salls
Pittsburgh, Feb. 24 – Stone Energy Corp. received approval to list its new common stock on the New York Stock Exchange under the same NYSE ticker symbol, “SGY,” as its existing shares of common stock in connection with its anticipated Feb. 28 emergence from Chapter 11 bankruptcy, according to a company news release.
As previously reported, the company’s plan of reorganization was confirmed on Feb. 15 by the U.S. Bankruptcy Court for the Southern District of Texas.
The stockholders of record at the close of business on the plan effective date will be entitled to receive new common shares and warrants in accordance with the plan. All existing shares will be cancelled.
Assuming a Feb. 28 effective date, Stone said trading in the new common shares is expected to begin on March 1.
The warrants will not be listed on an exchange at this time, but the company said it expects to list the warrants on an exchange by the end of March.
Under the plan, pre-bankruptcy holders of Stone’s unsecured notes will receive 19 million new common shares, representing 95% of those shares.
Pre-bankruptcy stockholders will receive 1 million new common shares, or an equivalent of a one-for-5.674558 reverse stock split. Additionally, the existing stockholders will receive warrants to purchase 3.53 million new common shares, or 3.529412 warrants for each new common share.
The company said those equity percentages are subject to dilution from the exercise of warrants and management incentive plan shares.
Stone Energy is a Lafayette, La., oil and gas exploration and production company. The company filed bankruptcy on Dec. 14 under Chapter 11 case number 16-36390.
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