Court Confirms Davis Petroleum's Plan of Reorganization; Company to Emerge from Chapter 11 by the End of March.HOUSTON -- Davis Petroleum Corp. ("Davis") today announced that the 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. has confirmed its plan of reorganization. The Court's confirmation of Davis's plan clears the way for the Company's emergence from its Chapter 11 proceeding by the end of this month. "We are extremely pleased the Court was able to confirm our plan of reorganization only three days after we filed our pre-packaged Chapter 11 case," said Gregg Davis, President of Davis. "Today really is an important milestone for Davis Petroleum. In the next two weeks we expect to complete our recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and emerge from Chapter 11 with a strong balance sheet, all creditors paid in full and ample liquidity to fund new growth initiatives." On March 8, the Company announced that it had reached an agreement with a private equity group ("The Evercore Group"), led by Evercore Capital Partners L.P. ("Evercore") to recapitalize the Company. The Group includes Red Mountain Capital Partners and Sankaty Advisors, an affiliate of Bain Capital Bain Capital LLC is a Boston, Massachusetts-based private equity firm founded in 1984 by Mitt Romney, the former Governor of Massachusetts, and two other partners from the consulting firm Bain & Company: T. Coleman Andrews III and Eric Kriss. . Under the terms of the agreement, the private equity group and management of the Company will purchase all of the equity of Davis Petroleum for approximately $150 million. In addition The Evercore Group expects to commit significant additional capital into Davis. In order to implement its recapitalization, Davis Petroleum filed a petition under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
In accordance with the plan of reorganization, holders of allowed general unsecured claims -- primarily pre-petition vendor claims and similar unsecured claims -- will be paid in full in cash on March 31, 2006. "Davis Petroleum has a successful track record in the exploration, discovery and development of onshore properties as well as more recent finds in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . We look forward to a close partnership with The Evercore Group which has provided Davis Petroleum with the financial flexibility to build on our track record and continue to grow" Mr. Davis concluded. About Davis Petroleum Corp. Founded by Jack Davis Jack Davis may refer to:
About Evercore Partners Evercore Partners NYSE: EVR is a boutique investment bank and private equity investment firm located in New York. It was founded by Blackstone Group alumni Austin Beutner and Roger Altman in 1996. Evercore Partners Inc. is a boutique financial advisory and investment firm. Evercore's advisory business provides its corporate clients with counsel on mergers, acquisitions, divestitures, restructurings and other strategic transactions. Evercore's investing business manages private equity and venture capital for institutional investors. Evercore's private equity investing arm, Evercore Capital Partners, has invested in a number of energy companies, including Michigan Electric Transmission Company, Continental Energy Services, and Energy Partners. Evercore recently extended its investing business to create Evercore Asset Management, an institutional asset management firm. Evercore serves a diverse set of clients around the world from its offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . For more information on Evercore, please visit www.evercore.com. About Red Mountain Capital Partners Red Mountain Capital Partners, headquartered in Los Angeles, is a private investment firm dedicated to investing in small capitalization public and private companies with a private equity approach. Red Mountain acquires strategic or control stakes in public companies and participates in negotiated private equity transactions on a selected basis. The firm was established by Willem Mesdag, a former partner of Goldman, Sachs & Co and the head of its Los Angeles office. About Sankaty Advisors Sankaty Advisors, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the credit affiliate of Bain Capital, LLC, is one of the nation's leading private managers of high yield debt obligations. With approximately $12 billion in committed capital (as of December 30, 2005), Sankaty invests in a wide variety of securities, including leveraged loans, high-yield bonds, stressed debt, distressed debt distressed debt Debt with low junk status and a market price substantially below par value, often pennies on the dollar. Investors sometimes buy distressed debt on the possibility that management can renegotiate loan agreements and keep the issuer out of , mezzanine debt, structured products and equity investments. Through a variety of funds, Sankaty Advisors has the ability to invest in a company's capital structure at every level from secured debt to equity, and can also provide capital to growing companies with unique financing needs. |
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