Lone Pine Resources Inc. is requesting bankruptcy court approval of its reorganization plan, contingent with its also receiving the Canadian bankruptcy court’s blessing early next year, the Wall Street Journal reported today. The company is scheduled to ask the Canadian court to approve its plan during a sanction hearing on Jan. 9. The approval will implement the plan in Canada, but it would still require U.S. court confirmation. Lone Pine is requesting that on Jan. 14, the U.S. Bankruptcy Court in Wilmington, Del., approve the sanction order from Canada, making the plan binding in the U.S. Lone Pine’s reorganization plan is a debt-for-equity swap that would allow it to shed $195 million in bond debt. The plan would hand equity in the reorganized company to bondholders and raise $100 million in new cash through a private rights offering. Current equityholders are being wiped out.
