Swift Energy emerges from bankruptcy
Client(s) Swift Energy Company
Jones Day represented Swift Energy and eight of its subsidiaries in chapter 11 cases that were commenced on December 31, 2015 due to the significant reduction in oil and gas prices the entire industry was facing at the time. With Jones Day's assistance, Swift Energy negotiated an agreement with holders of a majority of the senior notes to convert all the notes, in the aggregate principal amount of approximately $905 million, to equity pursuant to terms of a restructuring support agreement. Under that agreement, other creditors with certain limited exceptions were to be paid or otherwise satisfied in full, and existing equity holders were to retain four percent of the company's equity plus receive warrants with three and four year terms for up to 30 percent of the postpetition equity. Judge Mary Walrath confirmed Swift Energy's plan of reorganization within 90 days after the filing of the petition, and after Swift Energy, with the assistance of Jones Day, resolved by agreement about a dozen objections to the plan filed by government agencies, taxing authorities, and unsecured creditors.
Confirmation occurred after the court’s prior approval of a sale of substantial non-core assets located in Louisiana to Texegy LLC. The plan became effective, and the Texegy sale closed within about two weeks after confirmation. The companies emerged from bankruptcy less than four months after the cases were filed.
