Stone Energy's Stock Plunges As RSA Agreement Contemplates Bankruptcy

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Stone Energy Corp. lost half their value in premarket trade Friday, after the oil and gas company announced a restructuring support agreement (RSA) with certain convertible note holders as the company prepares for a bankruptcy filing. The RSA contemplates the company will file for chapter 11 on or before Dec. 9, the company said in a statement issued late Thursday. "The execution of the RSA is the culmination of months of hard work to right-size our balance sheet in response to a sustained period of low oil and natural gas commodity prices," said Chief Executive David Welch.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below