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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 11, 2000
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Date of Report (Date of earliest event reported)
COSTILLA ENERGY, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-21411 75-2658940
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(State or other (Commission (IRS Employer
jurisdiction) File Number) Identification No.)
400 West Illinois, Suite 1000
Midland, Texas 79701
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(Address of principal executive offices)
(915) 683-3902
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On February 11, 2000, Costilla Energy, Inc. (the "Company") filed a
proposed Plan of Reorganization (the "Plan") in its bankruptcy proceeding styled
In re: Costilla Energy, Inc., Case No. 99-70653 in the United States Bankruptcy
Court for the Western District of Texas, Midland Division. The Plan, which is
subject to the approval of the Bankruptcy Court, sets forth the means for
addressing claims against and interest in the Company. The following is a brief
summary of the treatment of certain types of claims under the Plan.
Under the proposed Plan, the Company's existing common and preferred stock
will be canceled and the holders thereof will not receive any distributions.
Holders of the Company's 10 1/4% Senior Notes due 2006, together with the other
unsecured creditors, will receive New Common Stock representing 100% ownership
of the reorganized company. The Company's bank credit facility will be treated
as a secured claim which may be satisfied by either refinancing provided by
other parties or restructuring with the existing bank group. Any allowed claim
related to the Company's commodity hedging contracts will be treated as a
secured claim that may also be satisfied either by refinancing or a
restructuring.
Consummation of the Plan will require approval of the U.S. Bankruptcy
Court. There are no assurances that the Plan will be approved or when the
effective date of a plan will be set. The Company intends to file a disclosure
statement relating to the Plan on or before February 29, 2000.
The Company issued a press release regarding the foregoing on February 11,
2000, a copy of which is attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Press Release issued February 11, 2000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COSTILLA ENERGY, INC.
Dated: February 14, 2000 By: /s/ Bobby W. Page
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Bobby W. Page, Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
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99.1 Press Release issued February 11, 2000