Tri-Valley Corporation (TVLY) announced the Company, its wholly owned subsidiaries, Tri-Valley Oil & Gas Co. ("TVOG") and Select Resources Corporation, Inc., and TVC Opus I Drilling Program, L.P., of which the Company is the managing partner, filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of Title 11 of the United States Code.
The Company's Chapter 11 Case is being administered under the caption "In re: Tri-Valley Corporation" (Case No. 12-12291). The Debtors have filed a motion with the Bankruptcy Court seeking to jointly administer, for procedural purposes, all of the Debtors' Chapter 11 Cases under the caption "In re: Tri-Valley Corporation, et al."
The Company has received a debtor-in-possession financing commitment of $11,048,078 by its senior secured lender George T. Gamble 1991 Trust, of which $3,850,000 represents new credit availability, to support the Debtors' business operations during the Chapter 11 Cases. Upon approval by the Bankruptcy Court, the new debtor-in-possession financing and cash generated from the Debtors' ongoing operations will be used to support the business during the bankruptcy process.
Maston Cunningham, President and CEO of Tri-Valley, said, "Uncertainties surrounding, among other things, the outstanding alleged claims by Opus and the ongoing inquiry by the staff of the Securities and Exchange Commission, have made the Company unattractive for the significant additional funding that would have been required to avoid the bankruptcy process and continue exploring strategic alternatives. We expect that a robust sale process for our oil, gas and mineral assets, and for Opus' oil and gas assets, will produce a substantial recovery for Tri-Valley creditors and for investors in the Opus partnership."
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