Saratoga Resources committee seeks approval of cash collateral use

By Mark Reccek

Bethlehem, Pa., Sept. 3 – Saratoga Resources, Inc.’s official committee of equity security holders asked the U.S. Bankruptcy Court for the Western District of Louisiana to allow the use of cash collateral to compensate committee professionals in a motion filed Thursday.

The equity committee is requesting the court to authorize and direct the debtors to use cash collateral to pay $75,000 for the retention of an equity committee consulting valuation expert and $100,000 in legal fees and expenses incurred, the motion said.

The motion also indicated the equity committee is unable to render informed decisions and adequately represent its constituents without a legal budget and consulting expert to offer an informed opinion of value.

According to the motion, “the equity committee seeks to level the playing field for all parties through an order authorizing and directing debtors to utilize cash collateral to pay the reasonable fees and expenses of the equity committee’s professionals.”

Saratoga Resources is an oil and natural gas exploration and production company based in Houston. The company has requested its case be jointly administered under Chapter 11 case number 15-50748.

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