Houston-based oil producer Swift Energy Co today says it has emerged from Chapter 11 bankruptcy, less than four months after filing for creditor protection. Reuter reports Swift filed for bankruptcy on Dec. 31 to restructure or refinance $30 million in revolving credit, joining about 40 other energy companies that entered bankruptcy in 2015 as oil prices plunged.
The company entered bankruptcy with an agreement with more than 60% of the holders of its unsecured bonds. Swift had said it planned to exchange those bonds for 96% of its stock when it exited bankruptcy. Its shareholders were to get 4% of its stock.
In January, the federal government objected to Swift’s attempts to sale most of its Louisiana oil and gas assets on the basis that the company could not transfer its rights to drill on federal land without first receiving consent.
With its emergence from bankruptcy, Swift says it has completed its financial reorganization, which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on March 31.
Also, In a news release, Swift has announced today it has closed a previously announced agreement with another Houston-based company TEXEGY, which has assets in Texas and Louisiana, for 75% of the Swift’s holdings in the Burr Berry Field and South Bearhead Creek Field areas in central Louisiana.
According to the release, the two companies have entered into a joint development and joint operating agreements to continue operation and development of the Central Louisiana properties.
“This transaction allows us to strengthen our liquidity profile while providing for a partnership that is well suited for growth opportunities in the region,” says Terry Swift, CEO of Swift Energy.
SV Energy Company, LLC, an affiliate of TEXEGY, now serves as the operator of the Central Louisiana properties, conducting all drilling, completion and production operations.
The net proceeds received by Swift Energy in this transaction were used primarily to reduce the amount of borrowings under the Company’s credit facility prior to the Chapter 11 reorganization effective date and for other general corporate purposes.
