U.S.S. Full Strike

On December 13, 2016, the United States Bankruptcy Court for the Southern District of Texas Houston Division confirmed the Second Amended Joint Chapter 11 Plan of Reorganization (“Plan”) for Energy XXI Ltd (EXXIQ). The Plan became effective on December 30, 2016, and EXXIQ shares were canceled.

CONTRACT ADJUSTMENT
Effective December 30, 2016, existing EXXIQ options are adjusted to no longer call for the delivery of Energy XXI Ltd shares upon exercise.

The option symbol EXXIQ will not change.

In settlement of EXXIQ exercise/assignment activity, an EXXIQ put exerciser (or call assignee) will receive a cash payment of the full aggregate strike price amount on the exercise settlement date. An EXXIQ put assignee (or call exercise) will pay this amount on the exercise settlement date. Settlement will take place through OCC’s cash settlement system on the third business day after exercise.

Since EXXIQ options are American-style, they are exercisable at the election of the holder. Expiration processing for EXXIQ options will take place in the normal fashion, including automatic exercise thresholds.

ACCELERATION OF EXPIRATIONS
Pursuant to OCC Rule 807, equity stock option contracts whose deliverables are adjusted to call for cash-only delivery will be subject to an acceleration of the expiration dates for outstanding option series. (See OCC Information Memo 23707) Additionally, the exercise by exception (ex by ex) threshold for expiring series will be $.01 in all account types.

All series of Energy XXI Ltd options whose expiration dates are after 1-20-2017 will have their expiration dates advanced to 1-20-2017.