Blast Energy plan confirmation hearing postponed to Nov. 28

By Caroline Salls

Pittsburgh, Nov. 8 - Blast Energy Services, Inc.'s plan of reorganization confirmation hearing has been adjourned to Nov. 28 from Nov. 14, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company asked the court to postpone the hearing earlier this week to allow for mediation of a Quicksilver Resources adversary proceeding.

Blast Energy said the mediation session is scheduled for Nov. 19.

According to the motion, the company believes it could reach a settlement with Quicksilver in mediation that would eliminate the need for Blast to issue most, if not all, of the convertible preferred stock called for under the current plan of reorganization.

Blast said this would benefit its common stockholders by avoiding the dilutive effect of the preferred stock issuance.

In addition, Blast said a settlement would allow it to pay on its obligations to Laurus Master Fund and the unsecured creditor classes quickly, as opposed to waiting for the completion of a protracted lawsuit.

Blast Energy, a Houston-based provider of fabricated mobile drilling rigs to the oil and natural gas sector, filed for bankruptcy on Jan. 19, 2007. Its Chapter 11 case number is 07-30424.

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