Energy Partners, Ltd. (EPL) says that the United States Bankruptcy Court for the Southern District of Texas, Houston Division approved the Disclosure Statement filed in connection with the Company's proposed pre-negotiated Joint Plan of Reorganization and authorized EPL to begin soliciting votes on the Plan. EPL's confirmation hearing, at which the Court will consider approval of the Plan, has been scheduled for July 29, 2009 at 10:30 am Central Time.

As previously announced, the Plan is supported by a committee that represents the Company's senior unsecured noteholders. Under the terms of the Plan, $454.5 million of principal plus accrued and unpaid interest related to these senior unsecured notes will be converted into equity of the reorganized Company.

"The Court's authorization allows us to begin the solicitation of votes on our pre-negotiated Plan, and thereby move forward expeditiously with our restructuring," said Alan D. Bell, Chief Restructuring Officer. "EPL is positioned to emerge from Chapter 11 as a stronger company, with a significantly improved balance sheet that will enable it to operate through the current economic environment and beyond. The Company is excited to have the support of its senior noteholders and appreciates the dedication and loyalty shown by its employees, customers and vendors throughout the restructuring process."

EPL will begin the process of soliciting votes for the Plan from eligible stakeholders on June 22, 2009. The Court has set the voting deadline for July 22, 2009, for eligible stakeholders.

The Plan is subject to confirmation by the Bankruptcy Court. This release is not intended as a solicitation for a vote on the Plan.

Tags: Energy Partners