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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (87903)	2/21/2001 11:37:35 AM
From: The Ox	Respond to of 95453

KCS Energy says pulls out of bankruptcy on plan WEDNESDAY, FEBRUARY 21, 2001 9:54:00 AM EST NEW YORK, Feb 21 (Reuters) - Independent energy producer KCS Energy Inc. KCS, said on Wednesday that it had completed a reorganization plan previously agreed upon with creditors allowing the troubled Houston-based company to emerge from bankruptcy. KCS Energy, which concentrates its operations on the Mid-Continent and Gulf Coast regions, said it had signed a production agreement with an Enron North America Corp. affliate, selling about 17.3 percent of its oil and gas reserves over the next five years for about $176 million. Funds from that deal along with proceeds from the issuance of $30 million preferred stock and cash were used to repay the firm's two bank credit facilities, pay interest on senior and senior subordinated notes and repay $60 million of senior notes. Under the plan, the company said shareholders will retain 100 percent of their common stock. "Our debt has been reduced from over $400 million to $215 million today. In addition to the $185 million reduction in debt, we expect to have over $30 million in cash on hand at the end of February," said KCS President and Chief Executive James Christmas. The company said trader creditors will be paid, the remaining $90 million principal amount of its senior notes and $125 million principal amount of senior subordinated notes will be renewed under amended indenture provisions, but without a change in interest rates. At the opening of New York Stock Exchange trading on Wednesday, shares in KCS Energy were up 50 cents, at $5.70, at the high end of the stock's trading range of 50 cents to $6.69.