CALGARY -- Oil and gas producer Lightstream Resources Ltd. says it has court approval to sell its assets to a new company that will be owned by its creditors.

The sale to newly created private firm Ridgeback Resources Inc. is to close by Dec. 29 and represents the final act of the company which will then be wound down.

Its creditors will be issued shares in the new firm based on how much Lightstream debt they hold.

Lightstream, struggling under close to $1.2 billion in debt, moved to a court-supervised sale this fall after it was unable to reach a settlement agreement with debt holders.

The Calgary-based company's stock has been delisted from the Toronto Stock Exchange.

Its assets are focused on light oil production from the Bakken and Cardium formations, which underly several states and provinces including Saskatchewan and Alberta.