KCS - "Creditors Seek to Place KCS Energy in Chapter 11 Bankruptcy"
Creditors seek to place KCS Energy in Ch11 bankrup
Wednesday January 5, 5:33 pm Eastern Time
WILMINGTON, Del., Jan. 5 (Reuters) - Noteholders of KCS Energy Inc. (NYSE:KCS - news) filed a petition Wednesday in the U.S. Bankruptcy Court in Delaware seeking to place the Houston, Texas-based oil and gas exploration company in involuntary Chapter 11 bankruptcy.
According to court papers, the petition was filed by creditors with claims of $23.1 million for 11 percent senior notes due 2003 together with interest, liquidated damages and fees. The noteholders are The Offit High Yield Fund, New York City, with an $11 million claim; The Prudential Insurance Co of America, Newark, N.J., $2.9 million; and B III Capital Partners LP of Wellesley, Mass., $9.2 million.
Last month it was reported that KCS said it planned to file for Chapter 11 bankruptcy protection on Jan. 18 and that lenders had agreed to provide up to $190 million in credit. The bank group includes Canadian Imperial Bank of Commerce, Bank One, BankAmerica, Comerica Bank, Den Norske Bank and General Electric Capital Corp.
The company also reported it was restructuring more than two-thirds of its 8.875 percent senior subordinated notes due January 2008 and the 11 percent notes.The company's reported liability at the end of September was $437 million, none of it in long-term debt.
Calls to KCS and to attorneys for the petitioning noteholders were not immediately returned.
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