The Petition is to be dismissed! NFEI will not seek damages from the Petitioners.
"On March 5, 2010, a petition for involuntary Chapter 7 bankruptcy entitled In re New Frontier Energy, Inc. (Case No. 10-14517HRT) (the “Petition”) was filed against New Frontier Energy, Inc. (the “Company”) in the United States Bankruptcy Court, District of Colorado by five Petitioning Creditors (the “Petitioners”). The Petitioners alleged that they have debts that are not the subject of a bona fide dispute as to liability or amount and that the Company is generally not paying its debts as they come due. The Petitioners were seeking liquidation of the Company’s assets and the appointment of a receiver. The Company believes that the Petitioners claims are without merit. After discussion with the Petitioners, on March 18, 2010, the Company and the Petitioners filed a joint motion to dismiss the Petition, and the motion is pending with the bankruptcy court. The Company believes that the joint motion to dismiss is an affirmation of the Company’s position that the Petition was wholly without merit. In connection with the joint motion to dismiss, the Company agreed not to seek or obtain judgment, sanctions or other relief against the Petitioners for filing the Petition and any claims against any person or entity that caused the dissemination of the filing to a certain oil and gas publication. In the event the bankruptcy court does not approve the dismissal of the involuntary bankruptcy petition, the Company intends to aggressively contest the involuntary bankruptcy petition. "
