Swift Energy Co.’s reorganization plan won approval from a bankruptcy judge on Wednesday, paving the way for the oil and gas driller to exit chapter 11 under the control of its bondholders, the Wall Street Journal reported today. Bankruptcy Judge Mary Walrath signed off on the plan, which will swap $905 million in bond debt for most of the new equity in the restructured Swift. It also will allocate a 4 percent equity stake in the postbankruptcy company to existing shareholders, as well as fully repay about $46 million in unsecured claims. Judge Walrath’s approval came after Swift Energy’s attorneys listed numerous modifications made to the plan to resolve objections and concerns from the likes of the U.S. Department of the Interior, unsecured creditors and the Internal Revenue Service. The reorganization plan was put to a creditor vote in mid-February and was approved by 91 percent of the senior note holders.
