Torrent Energy and its subsidiaries, including Methane Energy, LLC, have filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Oregon, lead case number 08-32638.

The Company announced intentions to file its plan of reorganization with the Court shortly. The Plan is expected to include a senior secured super-priority debtor in possession credit and guaranty agreement, pursuant to which the Company will obtain financing for working capital and other approved uses, and a rights offering, under which the shareholders of the Company will have the opportunity to purchase a minimum of $2 million of additional new equity, subject to Court approval and other conditions. The Company is represented by Jeanette L. Thomas of Perkins Coie.

We will have to see what impact this has on Coos County and Coquille.