RAAM Global Energy files bankruptcy, negotiating purchase agreement

By Caroline Salls

Pittsburgh, Oct. 27 – RAAM Global Energy Co. filed Chapter 11 bankruptcy Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

Chief restructuring officer James R. Latimer III said the forbearance agreements with holders of the company’s senior secured notes and its credit agreement lenders expired on Sept. 14.

As previously reported, RAAM missed the April 1, 2015 interest payment on its senior secured notes.

In addition, a proposed notes exchange offer terminated on Aug. 20 because the amount of tenders was not sufficient to meet the minimum tender condition.

Latimer said the company is negotiating a credit bid stalking horse purchase agreement with the holders of roughly 99% of the outstanding debt under its term loan facility. RAAM is looking to present a stalking horse purchase agreement and bid procedures to the bankruptcy court before Nov. 6.

The company requested court approval to use the cash collateral of its first-lien and second-lien secured parties to pay its obligations while in bankruptcy and preserve the going concern value of its business.

According to court documents, RAAM has $1 million to $10 million in assets and $100 million to $500 million in debt. The company did not list any unsecured creditors with claims of $1 million or more.

The company is represented by Vinson Elkins.

RAAM is a Lexington, Ky.-based oil and gas company. The Chapter 11 case number is 15-35615.

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