News 05 Oct. 2011

Curtis Acts as Lead Counsel to Official Committee of Equity Security Holders in Successful Reorganization of North American Petroleum Corporation USA

New York, October 5, 2011— Curtis, Mallet-Prevost, Colt & Mosle LLP acted as lead counsel to the Official Committee of Equity Security Holders of North American Petroleum Corporation USA ('NAPCUS') and its affiliates, whose joint Chapter 11 Plan became effective on September 30, 2011. Under the Plan, NAPCUS emerged as a consolidated, reorganized entity.

NAPCUS is a natural gas drilling company which filed for Chapter 11 protection due to a drilling dispute which had substantially interfered with the company's liquidity and its ability to service its debt. Issues raised in the subsequent litigation called into question whether a recovery for shareholders was achievable. Curtis was engaged by a group of shareholders to seek the formation of an official committee in the Chapter 11 cases to protect their interests. Though such committees are rarely appointed, Curtis' efforts proved successful and the Equity Committee, with Curtis as its counsel, was appointed. Thereafter, through a successful collaboration with the Equity Committee, NAPCUS was able to obtain a settlement to this dispute that resulted in a recovery to shareholders that ultimately resulted in confirmation of the Plan.

The Plan was approved by Judge Christopher S. Sontchi of the Bankruptcy Court for the District of Delaware on September 14, 2011. Pursuant to the Plan, the financial affairs of NAPCUS were reorganized, its share capital was restructured, new capital for operations was raised, all claims were satisfied in full or settled and NAPCUS emerged with no debt. In addition, Curtis, on behalf of the Equity Committee, was able to obtain a recovery for the existing equity holders.

The Curtis team representing the Equity Committee in these matters was led by partner Timothy A. Barnes and included associates Peter J. Buenger and James E. Zimmer from the Restructuring and Insolvency group, partner Evan S. Borenstein and counsel Raymond T. Hum from the Corporate group, and partner Nancy E. Delaney from the Litigation group.