Sep. 21, 2009 (PR Newswire) -- NEW ORLEANS, Sept. 21 /PRNewswire-FirstCall/ -- Energy Partners, Ltd. ("EPL" or, the "Company") (Pink Sheets: ERPLQ) (NYSE: EPL) announced that its Second Amended Joint Plan of Reorganization as modified as of September 16, 2009 (the "Plan"), filed with the United States Bankruptcy Court for the Southern District of Texas, became effective today, marking EPL's emergence from its voluntary Chapter 11 restructuring. EPL also announced that it has entered into a $70 million credit facility led by General Electric Capital Corporation that will be immediately available to provide the Company with additional operating liquidity.

"Today Energy Partners reached the final milestone in what has been a very deliberate and successful financial restructuring," said Alan D. Bell, Chief Restructuring Officer. "By converting a substantial amount of our debt to equity, we emerge from Chapter 11 with a much-improved capital structure. Our enhanced financial flexibility, including our new exit financing facility, will position us well within our industry. We are pleased to have completed this process so quickly through close collaboration with our stakeholders. The completion of our financial restructuring is a testament to the strength of our underlying business and we appreciate the unwavering support of our employees and vendors through this process."

The Company entered into a $70 million senior secured credit facility with General Electric Capital Corporation as administrative agent and two financial institutions as lenders consisting of a $25 million term loan and a three-year revolving credit facility with $45 million available at closing. The Company also issued Senior Subordinated Secured PIK Notes due 2014 (the "Notes") in an aggregate principal amount of $61.112 million pursuant to an Indenture with The Bank of New York Mellon Trust Company, N.A., as trustee. The Company received net proceeds of $55 million at closing from the issuance of the Notes. At the closing, the Company has drawn $25 million under the revolving credit facility.

In accordance with the terms of the Plan, the holders of the Company's (i) 8.75% Senior Notes due 2010, (ii) 9.75% Senior Unsecured Notes due 2014 and (iii) Senior Floating Notes due 2013 collectively will receive their pro rata share of 95% of the outstanding common stock in the reorganized Company upon its emergence from bankruptcy, and the existing stockholders in the Company will receive the remaining 5%, in each case prior to any issuance of shares or options under customary employee incentive arrangements.