Luca International Group LLC, an independent upstream energy company with properties in Louisiana and Texas, filed for protection under Chapter 11 on August 6, 2015 in response to multiple lawsuits stemming from allegations of fraud and breach of contract. The SEC alleges that the former CEO of Luca, Bingqing Yang, knew that the company was earning no profits and sinking under a mountain of debt, yet she made presentations to investors portraying a successful oil and gas operation with millions of barrels of oil reserves and billions of cubic feet in gas reserves. Loretta Cross was appointed Chief Restructuring Officer to lead the restructuring efforts. Under Ms. Cross's direction post-petition financing was secured, the assets were sold, and claims were investigated.
An essential part of the Plan is the formation of a Trust that will pursue litigation. The Trustee will be Randy Williams of Thompson & Knight.
The parties were represented by Ed Rothberg and Brendetta Scott from Hoover Slovacek LLP (for Luca International Group and eleven affiliates); John Melko of Gardere Wynne Sewell LLP (for the post-bankruptcy lenders); Elizabeth M. Guffy and Phil Eisenberg of Locke Lord, LLP (for the Official Equity Committee) and John Yun and Sonia Chae from the SEC. Loretta Cross and John Baumgartner from Stout Risius Ross served as the financial advisor and CRO of the Debtors.
About Stout Risius Ross
SRR is a global advisory firm specializing in Investment Banking, Valuation & Financial Opinions, and Dispute Advisory & Forensic Services. We serve a range of clients from Fortune 500 corporations to privately held companies in numerous industries around the world. Our clients and their advisors rely on our premier expertise, deep industry knowledge, and unparalleled responsiveness on complex financial matters. For more information, visit www.SRR.com, follow us on Twitter @StoutRisiusRoss, and/or connect with us on LinkedIn.
SRR is a trade name for Stout Risius Ross, Inc. and Stout Risius Ross Advisors, LLC,
a FINRA registered broker-dealer and SIPC member firm.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/luca-international-settles-with-the-sec-and-confirms-chapter-11-plan-300300943.html
SOURCE Stout Risius Ross