Stone Energy Corporation (SGY)

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Stone Energy Negotiates Sale Of Marcellus In Restructuring Bid

2016/08/26

Stone Energy (NYSE: SGY) is talking to potential buyers for its Marcellus assets as it attempts to back into a possible bankruptcy filling with a restructuring agreement in place among its creditors.

The Layfette, La.-based company plans to sell its Appalachian assets to an unrelated third party for a net price of $350 million, according to Securities and Exchange Commission filings. Previous market tests indicated that Stone Energy’s assets could fetch a sales price ranging from $250 million to $400 million, depending on commodity prices.

Under the company’s plan, $150 million from the net proceeds—about 43%—would be paid to noteholders. The remaining money would be used to pay bank debt and to fund working capital needs. If the Appalachia assets sell for more than $350 million, noteholders would receive 60% of the proceeds.

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http://www.oilandgasinvestor.com/stone-energy-negotiates-sale-marcellus-restructuring-bid-1348076

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Stone Energy Corp. (SGY)
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