Edge Petroleum Files For Chapter 11 Bankruptcy Protection
6:25 AM ET 10/2/09 | Dow Jones
Edge Petroleum Corp. (EPEX) said Friday that it and each of its subsidiaries have filed for reorganization under Chapter 11 of the U.S. bankruptcy code and that there will likely be nothing left for common stockholders. The company said it's reached an agreement with a group of its senior secured lenders to sell substantially all its assets to a third part for around $191 million before potential adjustments. The company said the expected proceeds from the sale are substantially smaller than the $226.5 million outstanding under its credit agreements. Common stockholders and holders of convertible preferred stock will likely receive nothing "even under the most optimistic of scenarios," the company said. Shares in Edge Petroleum closed Thursday at 53 cents each.
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