| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Rooster Energy Ltd. > News item |
Rooster Energy creditors eye mediation before hearing on case future
By Caroline Salls
Pittsburgh, Sept. 11 – Rooster Energy, LLC’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Western District of Louisiana to order mediation of issues that have arisen in Rooster’s bankruptcy case before conducting a hearing on requests to convert or dismiss the case.
On Friday, acting Region 5 U.S. Trustee Henry G. Hobbs Jr. asked the court to dismiss the case. Administrative and collateral agent Angelo, Gordon Energy Servicer, LLC had previously asked the court to convert the case to Chapter 7 bankruptcy.
Hobbs said in his motion that “no facts have been presented which establish a reasonable likelihood that conversion and subsequent administration by a Chapter 7 trustee would benefit the unsecured creditors.”
In addition, Hobbs said the administration of the case by a Chapter 7 trustee “will almost certainly be lengthy and expose the estate to liability.”
Meanwhile, the committee said in its filing that “while progress is being made toward a global resolution, the parties have recently taken several worrisome steps backwards in their discussions.”
As a result, the committee said it believes that the parties need to go to mediation to achieve a settlement.
The creditor group is asking the court to adjourn the Sept. 12 hearings on the conversion and dismissal requests and order the parties to meet with a mediator.
If the court does decide to hold the Sept. 12 hearing, the committee echoed that U.S. Trustee’s argument that the case should be dismissed, rather than being converted.
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.