Teton Energy emerges from bankruptcy under Caerus Oil and Gas control

By Caroline Salls

Pittsburgh, Jan. 22 - Teton Energy Corp. emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on Friday, according to an 8-K filed with the Securities and Exchange Commission.

The plan was confirmed on Jan. 20 by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan was based on the sale of the company's assets to Caerus Oil and Gas LLC.

Specifically, Caerus agreed to fund the plan with $20.05 million in cash, a contractual participation right to 50% of the net profits of Teton DJCO and a contractual participation right to 50% of the net profits of TBH.

Teton Energy has been renamed Teton Energy LLC under the plan.

In addition, Caerus has acquired 100% of the membership interests in Teton; all assets held by the company immediately before the effective date were re-vested in the pre-bankruptcy owners of those assets; all equity interests were cancelled; and all claims of the holders of the company's 10.75% secured convertible debentures were cancelled, released and discharged.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims, other priority claims, DIP loan claims, trade claims and other secured claims will be paid in full in cash;

• Holders of pre-bankruptcy secured lender claims will receive at least $18 million from asset sale proceeds;

• Holders of general unsecured claims and convertible debenture claims will receive a share of a cash contribution;

• Holders of subsidiary interests will retain those interests; and

• Interests in Teton Energy will be cancelled, extinguished and discharged.

Teton Energy said it has filed a cease trading request with the Financial Industry Regulatory Authority, and its common stock has ceased trading and has been removed from the OTC quotation systems list.

On the effective date, chairman of the board and interim chief executive officer James J. Woodcock, executive vice president and chief financial officer Jonathan Bloomfield, president, chief operating officer and director Dominic J. Bazile II and director Thomas F. Conroy resigned from the company.

Teton, a Denver-based developer, producer and marketer of natural gas and oil properties, filed for bankruptcy on Nov. 8. Its Chapter 11 case number is 09-13946.

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