Rooster Energy requests approval to obtain $1.96 million in financing

By Caroline Salls

Pittsburgh, July 20 – Rooster Energy, LLC requested court approval to obtain post-bankruptcy financing from Corn Meal, LLC, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Western District of Louisiana.

Specifically, Corn Meal will provide up to $592,500 in tranche A financing and up to $1.37 million in tranche B financing.

“The Rooster Opco debtors’ ability to obtain the post-petition financing is critical to the Rooster Opco debtors’ ability to continue as a going concern during the course of these debtors’ Chapter 11 bankruptcy cases,” the motion said.

The proceeds of the financing will be used to fund certain costs of administering the operating company debtors’ estates, including fees assessed by the Office of the U.S. Trustee and the Clerk of Court and fees and expenses of professionals of the estates, the Rooster unsecured creditors committee and other expenses.

Interest will accrue at a rate of 5%.

The financing will mature on the earliest of the second anniversary of the closing, the date of acceleration of the obligations, the closing of a sale of any operating company debtors’ property, the effective date of a Chapter 11 plan and conversion of the bankruptcy case.

Rooster is a Houston-based oil and gas production company that filed for bankruptcy on June 2. The Chapter 11 case number is 17-50705.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.