Endeavour International Corp.'s bid to have its chapter 11 case tossed out of court in a structured dismissal has come under fire from unsecured creditors, who say that the deal is skewed to benefit Endeavour's foreign affiliates and a handful of top-ranking creditors at their expense, Dow Jones Daily Bankruptcy Review reported today. In court papers filed Friday with the U.S. Bankruptcy Court in Wilmington, Del., lawyers for the unsecured creditors’ committee objected to Endeavour's request for a dismissal and instead asked Judge Kevin J. Carey to appoint a trustee to oversee the company's remaining assets. Endeavour, an oil and gas company, plans to hand control of its U.K. assets — the bulk of its business — to a group of senior bondholders in a debt-for-equity swap. Instead of ending its bankruptcy case with a chapter 11 plan that follows specific rules for debt repayment prescribed by Congress, Endeavour and its senior creditors have agreed to set aside money and settle their differences outside the bankruptcy courtroom.
