Saratoga Resources equity committee agrees not to object to extension

By Caroline Salls

Pittsburgh, Oct. 14 – Saratoga Resources, Inc. and the official committee of equity security holders appointed for its case reached an agreement under which the committee will not object to the company’s exclusivity extension motion and a committee motion to terminate exclusivity will be put on hold, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Western District of Louisiana.

Specifically, the committee agreed not to object to Saratoga’s motion to extend its exclusive Chapter 11 plan filing period through Dec. 15 and exclusive plan vote solicitation period through Feb. 15, subject to the committee’s right to prosecute the termination motion at a later date.

According to the order, the stipulation allows the termination motion to be set for a hearing within seven days of Saratoga’s filing of a plan.

As previously reported, the committee said the court should terminate the company’s exclusivity to allow it to propose a Chapter 11 plan that preserves equity value.

The committee argued in the termination motion that the power to file a Chapter 11 plan rests unfairly with the lenders.

Saratoga Resources is an oil and natural gas exploration and production company based in Houston. The company filed for bankruptcy on June 18 under Chapter 11 case number 15-50748.

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