watch out this one "bankruptcy" Stone Energy C

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Stone Energy Corporation (NYSE:SGY) shares have fallen by 43% after the company announced entry into a comprehensive restructuring support agreement with senior noteholders. According to the press release,
“The RSA [restructuing support agreement] contemplates that the Company will file for voluntary relief under chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in a United States Bankruptcy Court (the “Bankruptcy Court”) on or before December 9, 2016 to implement the Plan in accordance with the term sheet annexed to the RSA.”
The company added that “existing common stockholders of Stone will receive their pro rata share of 5% of the common stock in reorganized Stone and warrants for up to 15% of the post-petition equity exercisable upon the Company reaching certain benchmarks pursuant to the terms of the proposed new warrants.” In addition, Stone Energy has agreed to sell Appalachia assets to an affiliate of Tug Hill for $360 million in cash.
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