Coho Energy Announces Modifications to and Confirmation of Bankruptcy Plan of Reorganization and Changes in CEO.Business Editors DALLAS--(BUSINESS WIRE)--March 21, 2000 Coho Energy, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :COHO) announced today that on March 20, 2000 the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Northern District of Texas confirmed, with several modifications, Coho's plan of reorganization. The modifications to the plan include the retention by the common shareholders as of Feb. 7, 2000 of 20% of any proceeds from Coho's lawsuit against Hicks Hicks , Edward 1780-1849. American painter of primitive works, notably The Peaceable Kingdom, of which nearly 100 versions exist. , Muse as well as 40% of any net sale proceeds from the Company's Tunisia permit. The Company has also announced a change in the number of shares to be outstanding after the effectiveness of the plan. It had previously noted a possible reverse stock split to proportionately reduce the number of authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: and outstanding shares to help the Company satisfy Nasdaq listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. . To more efficiently effect this change, the Company amended its plan so that the change in capitalization is effective as part of the plan of reorganization. This change will entail the issuance of one share of new common stock for each 40 shares of old common stock, rather than the one-for-one exchange ratio previously planned. The change will not affect the relative percentage ownership interests among various groups of shareholders after the effectiveness of the plan. In addition to the modifications to the plan of reorganization the Company also announced that its President and Chief Executive Officer, Jeffrey Clarke, is expected to resign concurrently with the effectiveness of the Company's confirmed plan of reorganization. At that time, Mike McGovern, currently a Managing Director of Pembrook Capital Corporation and formerly the Chairman and Chief Executive Officer of Edisto Resources Corporation, is expected to be elected as the new President and Chief Executive Officer. The change in chief executive officer results from the request of the majority holders of the Company's 8 7/8% bonds and was not a decision taken by the current board of directors. The plan entails the issuance of more than a majority of the Company's stock to the bondholders. The confirmed plan, its effectiveness, and the concomitant concomitant /con·com·i·tant/ (kon-kom´i-tant) accompanying; accessory; joined with another. concomitant adjective Accompanying, accessory, joined with another change in the Company's management, is anticipated to occur on March 31. |
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