Delta Petroleum Corporation Announces The Submission Of A Reorganization Plan Sponsorship Proposal
DENVER, May 10, 2012 /PRNewswire/ -- Delta Petroleum Corporation (DPTRQ.PK) announced today that it and certain of its subsidiaries (collectively, "Delta" or the "Company") have obtained U.S. Bankruptcy Judge Kevin J. Carey's approval of Delta's choice of Laramie Energy II, LLC ("Laramie") as the sponsor of a plan of reorganization to be proposed by Delta.
Laramie and Delta have entered into a non-binding term sheet describing a transaction by which Laramie and Delta will form a new joint venture, Piceance Energy LLC ("Piceance Energy") Piceance Energy, whose assets will comprise Laramie's and Delta's Piceance Basin assets, will be owned 66.66% by Laramie, and 33.34% by a newly reorganized Delta Petroleum ("Reorganized Delta"). In addition to the 33.34% membership interest, Piceance Energy will distribute $75 million to Reorganized Delta. The $75 million in cash proceeds will be used to pay the Company's bankruptcy expenses and to repay secured debt. Reorganized Delta will retain the Company's interest in the Point Arguello unit of offshore California, other miscellaneous assets, and certain tax attributes. It is anticipated that the common stock of Reorganized Delta will be owned by the Company's creditors. The Company's current shareholders are not expected to receive any consideration under the reorganization plan as currently contemplated.
ABOUT DELTA PETROLEUM
Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. The Company's core area of operation is the Piceance Basin in the Rocky Mountain region, which comprise the majority of its proved reserves, production.
Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, the length and outcome of the bankruptcy process, the availability of financing and rulings of the bankruptcy court. Readers are cautioned that all forward-looking statements are based on management's present expectations, estimates and projections, but involve risks and uncertainty, including without limitation, uncertainties in the bankruptcy process, the ability to maintain debtor in possession financing, the length of time that the Company will be in bankruptcy, the amount of claims that might be asserted against the bankruptcy estate, the potential for adverse rulings by the bankruptcy court, as well as general market conditions, competition and pricing. Please refer to the Company's report on Form 10-K for the year ended December 31, 2010 and subsequent reports on Forms 10-Q and 8-K as filed with the Securities and Exchange Commission for additional information. The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
For further information contact the Company at (303) 293-9133 or via email at email@example.com
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