Blast Energy plan confirmation hearing continued to Jan. 30

By Jennifer Lanning Drey

Portland, Ore., Nov. 28 - Blast Energy Services, Inc.'s hearing for approval of its plan of reorganization was continued to Jan. 30 through an agreement between the company, the court and its stakeholders, according to a source familiar with the case.

The hearing began Wednesday at the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Blast's official committee of unsecured creditors objected to the company's plan of reorganization on Nov. 21, due to uncertainty related to the funding on which the plan is based.

In the objection, the committee said the feasibility of the plan is based on Blast successfully raising $3 million in a private placement of equity; however, Blast is still trying to obtain the necessary plan funding.

Without the plan funding, Blast will not be able to satisfy claims intended to be paid in full under the plan, the committee said in the filing.

Additionally, Blast previously asked the court to delay the plan confirmation hearing to Nov. 28 so that the hearing would be after a mediation session with Quicksilver Resources.

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

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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