North American Petroleum Corporation USA ("NAPCUS") Announces Implementation of Joint Chapter 11 Plan and Emergence from Chapter 11
TULSA, Okla., Sept. 30, 2011 /PRNewswire/ -- On September 14, 2011, the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") entered a confirmation order in respect of the First Amended Joint Chapter 11 Plan (the "Chapter 11 Plan") of NAPCUS, Prize Petroleum LLC ("Prize") and Petroflow Energy Ltd. ("Petroflow"). On September 21, 2011, a recognition order was issued under the Companies' Creditors Arrangement Act, Canada in respect of the order obtained in the Bankruptcy Court. The Chapter 11 Plan became effective September 30, 2011.
In accordance with the Chapter 11 Plan, the financial affairs of NAPCUS were reorganized, its share capital was restructured, new capital for operations was raised, the claims of unsecured creditors of NAPCUS and Petroflow were fully satisfied, existing equity holders are entitled to a recovery and all securities of Petroflow were cancelled. The Chapter 11 Plan facilitates NAPCUS's going concern business, providing it with sufficient liquidity and financial resources to effectively implement its post-emergence business plan. NAPCUS will continue as a private corporation. .
"The Emergence is a significant step towards maximizing NAPCUS's go-forward value. As set forth in our Chapter 11 Plan, all claims were satisfied in full or settled, and NAPCUS emerges with no debt, sufficient capital, approximately 9,000 HBP acres as well as other drilling opportunities," said NAPCUS's President & CEO, Richard Menchaca. Menchaca added, "NAPCUS hopes to begin to capitalize on its drilling opportunities by spudding its first well in December."
NAPCUS is also pleased to announce its new Board of Directors: Fred Zeidman, the Chairman of the Board, Cecil Schenker, Don Rowden, Johnston Cairns and Richard Menchaca.
As a result of the reorganization in accordance with the Chapter 11 Plan, NAPCUS became a reporting issuer in Alberta, British Columbia and Ontario. NAPCUS intends to immediately make application to the securities commissions in each of those Provinces to cease being a reporting issuer.
Additional information is available by accessing NAPCUS's restructuring website at http://dm.epiq11.com/NAP.
SOURCE North American Petroleum Corporation USA
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