HOUSTON, Jan. 6 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) announced
today that an involuntary bankruptcy petition was filed by three purported
Senior Noteholders on January 5, 2000. Despite such filing, the Company
reiterated its intention to move forward with a Restructuring Agreement that
has been approved by more than two-thirds of the holders of the Company's
8.875% Senior Subordinated Notes due January 15, 2008 and by more than a
majority of its 11% Senior Notes due January 15, 2003 and to continue to pay
trade creditors in the ordinary course. As part of that agreement, the
Company intends to move forward with its previously announced plan to
implement the Restructuring pursuant to a case under Chapter 11 of the
Bankruptcy Code.
KCS President and Chief Executive Officer James W. Christmas stated, "We
are confident the Restructuring Agreement, as announced on December 28, is the
best possible plan for all of KCS' stakeholders -- lenders, Noteholders,
equity investors, trade creditors and employees." The Agreement provides for
all Senior Noteholders to receive a cash payment for interest due as of
January 15, 2000, totaling $16.5 million. Consenting Senior Noteholders will
exchange their existing notes for new 11% Senior Notes due January 15, 2005
secured by a junior lien against certain assets. Non-consenting Senior
Noteholders will have their existing Senior Notes reinstated, as amended in
accordance with the existing indenture. Senior Subordinated Noteholders will
receive a combination of cash and redeemable convertible preferred stock in
exchange for their Subordinated Notes. In addition, the Restructuring
Agreement would enable the Company to continue to pay trade creditors in the
normal course of business. The Company intends to file the proposed plan with
the bankruptcy court on or before January 18, 2000. The plan will be subject
to confirmation by the bankruptcy court.
KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude oil with
operations in the Mid-Continent and Gulf Coast regions. The Company also
purchases reserves (priority rights to future delivery of oil and gas) through
its Volumetric Production Payments (VPP) program. For more information on KCS
Energy, Inc., please visit the Company's web site at http://www.kcsenergy.com
To receive KCS' latest news and other corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use company code KCS. See also
http://www.frbinc.com .
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells, delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the legal and other risk factors detailed from time to time in the Company's
periodic reports and registration statements filed with the Securities and
Exchange Commission.
SOURCE KCS Energy, Inc.
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Related links:
http://www.kcsenergy.com
CONTACT:
James W. Christmas, President and CEO of KCS
Energy, Inc., 713-877-8006; or General Info., Marianne Stewart,
212-661-8030, Analyst Info., Beth Lewis, 617-369-9240, or Media
Info., Claudine Cornelis, 212-661-8030, all of The Financial
Relations Board
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