Endeavour Obtains Interim Stock and Claims Order for Trading Requirements
HOUSTON, Oct. 17, 2014 -- Endeavour International Corporation (OTC: ENDRQ) (LSE:
ENDV) announced today that on October 10, 2014, it and certain of its
subsidiaries, including Endeavour Operating Corporation (collectively, the
"Debtors"), filed a motion (the "Motion") with the United States Bankruptcy
Court for the District of Delaware (the "Bankruptcy Court") seeking an order
(i) restricting certain transfers of interest in Endeavour common stock and
preferred stock and, depending on the Debtors' proposed chapter 11 plan when
filed, certain transfers of claims against the Debtors, and (ii) imposing
certain notification requirements with respect to substantial owners of
Endeavour stock (by class) and substantial owners of claims against the Debtors
(namely, Endeavour's 12% First Priority Notes, its 12% Second Priority Notes,
and any unsecured claims against the Debtors). The order is intended to prevent
certain transfers of stock of Endeavour and certain transfers of claims against
the Debtors that could impair the ability of one or more of the Debtors'
estates to use, to the extent otherwise available, their net operating loss
carryovers and certain other tax attributes during bankruptcy and on a
reorganized basis.
On October 15, 2014, the Bankruptcy Court entered an order on an interim basis
granting the Motion. All procedures reflected in the interim order currently
apply and must be complied with. Accordingly, any acquisition, disposition, or
other transfer of equity or claims on or after October 10, 2014, in violation
of the restrictions set forth in the interim order shall be null and void ab
initio or otherwise subject to sanctions as an act in violation of the
automatic stay under sections 105(a) and 362 of the United States Bankruptcy
Code. A final hearing on the Motion and requested relief is scheduled for
November 10, 2014, at 10 a.m. before The Honorable Kevin J. Carey at the
Bankruptcy Court, 824 North Market Street, Wilmington, Delaware 19801.
The requested relief and interim order apply to "Substantial Equityholders,"
being persons who are, or as a result of a transaction would become, the
beneficial owner of approximately 4.75% or more of the outstanding shares of
any class of common or preferred stock of Endeavour. It also applies to holders
of a substantial amount of claims, being persons who are, or as a result of a
transaction become, the beneficial owner of Endeavour's 12% First Priority
Notes, 12% Second Priority Notes, and/or unsecured claims against the Debtors
in excess of an amount of such claims which, taking into account any other
interests for which the holder may receive stock in the reorganized Debtors,
could result in such holder holding the "Applicable Percentage," generally 4.5%
or more, of the stock of the reorganized Debtors, by vote or value. The precise
amount of claims will be disclosed in connection with the Debtors' filing of
their proposed chapter 11 plan and disclosure statement in the event the
Debtors reasonably anticipate taking advantage of certain tax provisions
relating to a debtor's ability to utilize loss carryovers and certain other tax
attributes on a reorganized basis. A copy of the notice of the interim order,
which includes complete definitions, the provisions potentially applicable to
holders of a substantial amount of claims, and the applicable notification
requirements and restrictions, is available on the website of the Debtors'
claims agent: www.kccllc.net/endeavour.
About Endeavour International Corporation
Endeavour International Corporation is an oil and gas exploration and
production company focused on the acquisition, exploration and development of
oil and natural gas in the North Sea and the United States. For more
information, visit www.endeavourcorp.com.
Forward-looking Statements
This press release contains certain "forward-looking statements," as such term
is defined in Section 21E of the Securities Exchange Act of 1934, as amended,
relating to future events and the financial performance of Endeavour. Such
statements are only predictions and involve risks and uncertainties, resulting
in the possibility that actual events or performance will differ materially
from such predictions as a result of certain risk factors. As such, readers are
cautioned not to place undue reliance on forward-looking statements, which
speak only to management's plans, assumptions and expectations as of the date
hereof. Please refer to Endeavour's Annual Report on Form 10-K for year ended
December 31, 2013, filed with the SEC on March 17, 2014, Form 10-K/A filed on
March 21, 2014 and other filings for a discussion of material risk factors.
Endeavour disclaims any duty to update or alter any forward-looking statements,
except as required by applicable law.
CONTACT: Endeavour - Investor Relations, Darcey Matthews, +1-713-307-8711
