Cano Petroleum amended plan accepted by majority of voting creditors

By Caroline Salls

Pittsburgh, July 11 - Cano Petroleum, Inc.'s second amended joint plan of reorganization has been accepted by a majority of voting creditors, according to a July 11 filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The plan was unanimously accepted by the one holder of $60.76 million in senior secured claims against the Cano Petroleum, Cano Petro of New Mexico, Ladder Cos., Inc., Square One Energy, Inc., W.O. Energy of Nevada, Inc., W.O. Operating Co., Ltd., W.O. Operating Co., Ltd. and WO Energy, Inc. debtors and the one holder of $16.57 million in UBE junior secured claims against the Cano Petroleum, Cano Petro of New Mexico, Ladder Cos., Inc., Square One Energy, W.O. Energy of Nevada, W.O. Operating, W.O. Production and WO Energy debtors.

In addition, the plan was unanimously accepted by the four holders of $30.78 million in general unsecured claims against the W.O. Energy of Nevada and WO Energy debtors, the seven holders of $30.99 million in general unsecured claims against the W.O. Operating debtor and the two holders of $29.82 million in general unsecured claims against the W.O. Production debtor.

Non-unanimous classes

Votes in classes that did not unanimously accept the plan included the following:

• 11 holders, or 84.62% in number, of $30.95 million, or 97.91% in amount, of general unsecured claims against the Cano Petroleum debtor voted to accept the plan, while two holders, or 15.38% in number, of $660,840, or 2.09% in amount, of these claims voted to reject it;

• Four holders, or 80% in number, of $29.87 million, or 99.997% in amount, of general unsecured claims against the Cano Petro of New Mexico debtor voted to accept the plan, while one holder, or 20% in number, of $1,029, or 0.003% in amount, of these claims voted to reject it;

• Eight holders, or 88.89% in number, of $29.92 million, or 99.999% in amount, of general unsecured claims against the Ladders debtor voted to accept the plan, while one holder, or 11.11% in number, of $419, or 0.001% in amount, of these claims voted to reject it; and

• Six holders, or 85.71% in number, of $29.9 million, or 96.282% in amount, of general unsecured claims against the Square One Energy debtor voted to accept the plan, while one holder, or 14.29% in number, of $1.15 million, or 3.718% in amount, of these claims voted to reject it.

The plan confirmation hearing is scheduled for July 16.

Cano, a Fort Worth-based oil and natural gas company, filed for bankruptcy on March 8. Its Chapter 11 case number is 12-31549.

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