Attached files
EXHIBIT 99.1
RANCHER ENERGY CORP. FILES FOR CHAPTER 11 REORGANIZATION; NORMAL OPERATIONS
CONTINUING AND UNAFFECTED
October 28, 2009 6:56 PM ET
Rancher Energy Corp. (OTCBB: RNCH) today announced that it has filed a voluntary
petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Rancher Energy Corp. intends to continue normal business operations today and
throughout its reorganization process. Specifically, it expects to continue to:
-- Provide employee wages, healthcare coverage, vacation, sick leave and
similar benefits without interruption; and
-- Pay suppliers for goods and services received during the
reorganization process.
"Rancher Energy is committed to continuing its business and successfully
emerging from the reorganization process," said Jon Nicolaysen, President and
CEO. "To be clear, we filed to restructure our debt and finances and our
customers and employees can be confident that we intend to keep producing oil."
"By filing for Chapter 11, we will now have the time and legal protection
necessary to obtain additional financing and enhance our liquidity."
Rancher Energy's Chapter 11 case was filed today in U.S. Bankruptcy Court for
the District of Colorado. Rancher will be filing motions with the Court seeking
interim relief that will ensure the Company's continued ability to conduct
normal operations, including the ability to:
-- Provide employee wages, healthcare coverage, vacation, sick leave and
similar benefits without interruption;
-- Use cash collateral to pay employees, suppliers and vendors; and
-- Retain necessary professionals to assist in the reorganization.
Rancher Energy's principal bankruptcy counsel is Dufford & Brown, P.C.
About Rancher Energy Corp.
Rancher Energy Corp. develops and produces oil in North America. It operates
three fields, including the South Glenrock B Field, the Big Muddy Field, and the
Cole Creek South Field in the Powder River Basin, Wyoming in the Rocky Mountain
region of the United States. The company was formerly known as Metalex
Resources, Inc. and changed its name to Rancher Energy Corp. in April 2006.
Rancher Energy Corp. was founded in 2004 and is headquartered in Denver,
Colorado.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:
Statements contained in this press release that are not historical facts may be
forward-looking statements as that item is defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks and
uncertainties that could result in actual results differing materially from
expected results and represent the Company's expectations and beliefs concerning
future events based on information available to the Company as of the date of
this press release. The Company undertakes no obligation to publicly update or
revise any forward-looking statements to reflect events or circumstances that
may arise after the date of this press release. Additional information regarding
risk factors that may affect future performance at the Company are contained in
the Company's SEC filings, including without limitation, the Company's Form 10-K
for its fiscal year ended March 31, 2009.
CONTACT:
Rancher Energy Corp. Investor Relations
(303) 629-1125