International Paper Co., Purchase, NY, said last week it may sell its Texas-based business units IP Petroleum Co., an exploration and production company, and Chocolate Bayou Water Co., an industrial and irrigation water supply business. The possible sale would be part of IP's recently announced plans to divest more than $3 billion in assets that no longer fit International Paper's long-term strategic objectives. "At this time, we do not know how long this process will take, and it is premature to speculate on any outcomes," says James R. Montague, general manager of the petroleum and minerals business.
A consortium of European banks led by Deutsche Bank has arranged a $530 million loan to finance a portion of the Iranian National Petrochemical Co.'s expansion program (OGJ, Aug. 16, 1999, p. 20). According to the Middle East Economic Digest, the syndicate of German, French and Italian banks includes Aka Ausfuhrkredit, Bayerische, Hypo-Vereinsbank, Berliner Handels Frankfurter Bank, Commerzbank, DG Bank, Westlbank, Kreditanstalt Fuer Wiederaufbau, Banca Commerciale Italiana, and Soci� G�rale. The financial package, which has cover from the German, French, and Italian export-credit guarantee agencies, is said to provide for parallel agreements by international trading companies to market NPC's products.
EMB Corp. said it agreed to buy 110 oil and gas wells on 10,000 acres of land in Eastland, Erath, and Comanche Counties in Texas from Morris Greenhaw Oil & Gas Inc. EMB said the properties contain 15 million boe of proven oil reserves, and are producing. Purchase terms were not revealed.
Costilla Energy Inc., Midland, Tex., has filed an amended plan of reorganization with the US Bankruptcy Court for the Western District of Texas, Midland Division. The amended plan provides for the creation of a trust for the distribution of proceeds from the sale of Costilla's oil and gas properties to Louis Dreyfus Natural Gas Corp. and the liquidation of the company's remaining assets (OGJ Online, June 18, 2000). Under the proposed plan, Costilla's existing common and preferred stock would be cancelled and would receive no distributions. The company also filed a proposed disclosure statement containing information about its plan, including the distribution of estimated proceeds.
Eagle Geophysical Inc., Houston, and its subsidiaries have emerged from bankruptcy, under which they have operated since Sept. 29, 1999. Their amended joint plan of reorganization was approved by the Bankruptcy Court June 28, effective July 10. All previously outstanding common shares have been cancelled, with shareholders receiving no interest in the reorganized firm. Eagle's shares were delisted from trading on Nasdaq shortly after the company filed for protection. The company's bondholders and various prepetition general unsecured creditors will receive certain cash distributions and other interests, as well as "substantially all of the shares of new common stock" issued by the reorganized company, says Eagle. The first distribution will occur later this month. The new shares will not be traded on an established securities market in the near future, says Eagle. A new board has been appointed, with Douglas B. Thompson serving as chairman and CEO. Eagle Geophysical emerges with stockholders' equity valued at about $12 million, secured debt of about $3 million, and access to a new revolving credit facility.