In the Fourth Report of the Monitor dated May 1, 2009 on the Hardie & Kellie webcite Canadian Superior Energy's Board of Directors on page 8 states their reorganization plan: http://relieffromdebt.ca/documents/c...

Item 29: "In the May 1 2008 affidavit of Richard Watkins (the May 1 Watkins Affidavit), Mr Watkins has explained the Independent Committee's intended reorganization plan for the Companies, which is comprised of:

a) the sale of 45% of Block 5(c);

b) the retention of the remaining 25% of Block 5(c);

c) entering into a negotiated merger with Challenger, and

d) financing of approximately 18 months of anticipated capital costs by means of recapitalization, or the sale of all or a portion of the Companies Western Canadian assets

(the Reorganization Plan)

Item 30: "Further details with respect to the Companies progress on carrying out the steps required to finalize the Reorganization Plan are contained in the May 1 Watkins Affidavit and the confidential Watkins Affidavit, which have been reviewed by the Monitor."

Item 31: "Based on that information, the Monitor is satisfied at the present time the Reorganization Plan is a reasonable strategy for the Company to pursue..."

Item 34: " A key requirement of the Reorganization Plan (given CSEI's stated intention to retain 25% of Block 5(c) is reaching a satisfactory agreement with Challenger. On May 1, 2009, the Monitor and Receiver met with the Independent Committee's advisors and were given an update as to the progress of discussions with Challenger's representatives. From the perspective of the Independent Committee, discussions have been progressing quickly and satisfactorily. However, the Monitor has been having periodic discussions with the Monitor of Challenger who continues to advise that in Challenger's opinion, the discussions have not been progressing at a satisfactory pace."

It was recommended in items 35 and 36 that the Monitors for both CSEI and Challenger attend all meetings in the future so they will receive the same information and it was recommended by the Monitor that the dates of both Challenger's and CSEI's CCAA extensions be co-ordinated. It has also been recommended that Challenger's and CSEI's CCAA proceedings come under the supervision of a single judge."

So progress is bing made as you read this and hopefully a great deal will be accomplished by June 4, 2009.

Best Wishes; Scott