UNITED STATES
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

Date of Report (Date of earliest event reported) October 22 29, 2009

CANARGO ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-32145	91-0881481
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
(State or other jurisdiction Of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
Of incorporation)		Identification No.)


CanArgo Energy Corporation
P.O. Box 291, St. Peter Port Guernsey, British Isles		GY1 3RR

(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code +(44) 1481 729 980

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Item 1.01	Entry into a Material Definitive Agreement	1	1
Item 1.03	Bankruptcy or Receivership	1	1
Item 2.04	Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement		2
Item 2.03	Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant	2
Item 9.01. Financial Statements and Exhibits			2
Item 8.01	Other Events	2
SIGNATURES			3
Item 9.01	Financial Statements and Exhibits	3
Exhibit 10.1 Plan Support and Lock-up Agreement
SIGNATURES		4
Exhibit 10.2 Commitment Letter Agreement
Exhibit 10.1	Debtor in Possession Financing Agreement
EX-10.1
Exhibit 10.2	Form of Secured Promissory Note
EX-10.2
Exhibit 10.3	Form of Security Agreement
Exhibit 10.4	Form of U.S. Pledge Agreement
Exhibit 10.5	Form of Guernsey Pledge Agreement
Exhibit 10.6	Form of Subsidiary Guarantee

This Current Report on Form 8-K may contain forward-looking statements within the meaning of the federal securities laws, including statements regarding the intent, belief or current expectations of the Company and its management which are made with words such as “will,” “expect,” “believe,” and similar words. These forward-looking statements involve a number of risks, uncertainties and other factors, which may cause the actual results to be materially different from those expressed or implied in the forward-looking statements Such risks, uncertainties and other factors include, among other matters, the uncertainties inherent in oil and gas activities; the effects of the Company’s impaired financial condition; the effects of actions by third parties including creditors and government officials; fluctuations in world oil prices and other risks detailed in the Company’s reports on Forms 10-K and 10-Q previously filed with the Securities and Exchange Commission; the effects of a the Chapter 11 filing on the Company and the interests of various creditors, equity holders and other constituents; Bankruptcy Court rulings in a the Chapter 11 case and the outcome of any such proceedings in general; the length of time the Company will operate under a the Chapter 11 proceeding; the risks associated with third party motions in a the Chapter 11 proceeding, which may interfere with the Company’s ability to consummate the plan of reorganization; the potential adverse effects of a the Chapter 11 proceeding on the Company’s liquidity or results of operations; continued compliance with conditions for funding under the secured credit facility obtained to fund the Company while in a the Chapter 11 proceeding; the ability to execute the Company’s business and restructuring plan; management of cash resources; restrictions imposed by, and as a result of, the Company’s substantial leverage; increased legal costs related to a bankruptcy case and other litigation and the Company’s ability to maintain contracts that are critical to its operation, to obtain and maintain normal terms with customers, suppliers and service providers and to retain key executives, managers and employees.

The Company does not intend to review, revise, or update any particular forward-looking statements in light of future events.

Section 1 — Registrant’s Business and Operations

Item 1.01 Entry into a Material Definitive Agreement

OnThe ~~October 22,~~information ~~2009,~~set ~~CanArgo~~forth ~~Energy~~under ~~Corporation (the “Company”) entered into a Plan Support and Lock-up Agreement dated as of August~~Item ~~6, 2009 (“PSA”) by and among the Company and the holders of the Company’s Senior Subordinated Convertible Guaranteed Notes due September~~ 1,.03 ~~2009, Persistency, a Cayman Islands corporation (~~“Persistency”) as the holder of the Company’s 12% Subordinated Convertible Guaranteed Notes due June 28, 2010 and the other creditors party thereto pursuant to which the parties thereto agree to support a plan of reorganization of the Company as a debtor in possession pursuant to Chapter 11 of the United States Bankruptcy ~~Code~~or ~~(the “Bankruptcy Code~~Receivership”) ~~substantially~~is onincorporated ~~the~~herein ~~terms and conditions set forth in Exhibit A to the PSA~~by reference.

On October 22, 2009, the Company and Persistency entered into a Commitment Letter Agreement pursuant to which Persistency agreed, subject to the terms and conditions set forth in the Commitment Letter Agreement, to lend the Company up to $1.2 million post-petition pursuant to the terms of a Debtor in Possession Financing Agreement (the “DIP Credit Agreement”) fully secured by all of the assets of the Company and guarantees of the Company’s principal subsidiaries.

Copies of the PSA and the Commitment Letter Agreement are filed herewith as Exhibits 10.1 and 10.2

Item 1.03 Bankruptcy or Receivership.

~~On October~~As previously disclosed in the Current Report on Form 8-K filed on October 28, 2009, ~~the~~by ~~Company~~CanArgo Energy Corporation (the “~~Debtor~~Company”), on October 28, 2009, the Company filed a voluntary petition seeking relief under Chapter 11 (the ~~provisions of~~ “Chapter 11 Case”) of the United States Bankruptcy Code ~~with~~(the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Chapter 11 Case is being administered under the caption In re CanArgo Energy Corporation, No. 09-16453.

On October 29, 2009, the Company as Debtor in Possession and Persistency (the “Lender”) entered into a Debtor-in-Possession Financing Agreement (the “DIP Credit Agreement”) and other financing documents by and between the Debtor and the Lender and by and between certain of Debtor’s direct and indirect subsidiaries and Lender, including forms of Secured Promissory Note, Security Agreement, Pledge Agreement under New York Law, Security Agreement under Guernsey Law and Subsidiary Guarantee Agreement (together with the DIP Credit Agreement, collectively, the “Financing Documents”). The Bankruptcy Court subsequently approved the DIP Credit Agreement and authorized a draw down pursuant to an Interim Financing Order.

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~~Southern~~The ~~District~~DIP ofCredit ~~New~~Agreement ~~York~~was (previously summarized in the ~~“Bankruptcy~~Term ~~Court”).~~Sheet ~~The~~comprising ~~Chapter~~Exhibit 11A ~~case~~to ~~is being~~the ~~administered~~Plan ~~under~~Support and Lock-Up Agreement filed as an Exhibit to the ~~caption~~Company’s InCurrent reReport ~~CanArgo~~on ~~Energy~~Form 8-K ~~Corporation.,~~filed ~~No.~~on October ~~09-16453~~28, (2009, and the ~~“Chapter 11 Case”).~~Company ~~The~~also ~~Bankruptcy~~disclosed ~~Court~~that ~~assumed~~the ~~jurisdiction~~DIP ~~over~~Credit Agreement provides for a commitment by the ~~assets~~Lender ofto lend the Debtor up to $1.2 million in one or more advances, aswhich advances ofmay not be repaid and re-borrowed. The proceeds from the ~~date~~initial of advance under the ~~filing~~DIP Credit ofAgreement were used to repay the ~~bankruptcy~~outstanding ~~petition.~~amount ~~The~~of ~~Debtor~~$73,122 ~~will~~due ~~remain~~under ina ~~possession~~bridge loan of ~~its~~up to ~~assets~~$550,000 (under which $408,470 was drawn and ~~continue~~ partly repaid) previously provided by Persistency to ~~manage~~CanArgo Limited, the Company’s wholly owned Guernsey subsidiary and the reimbursement of ~~operate~~professional ~~its~~fees ~~business~~previously ~~and~~incurred ~~properties,~~by asPersistency ~~debtor-~~in~~-possession~~ the amount of $253,087 ~~subject~~and, among other things, to provide the ~~provisions~~Company ofwith ~~the~~working capital for general corporate purposes. The DIP Credit ~~Bankruptcy~~Agreement ~~Code~~contains events of default and includes certain financial covenants. The above summary of the ~~supervision~~DIP Credit Agreement is qualified in its entirety by reference to the DIP Credit Agreement and ~~orders~~related Financing Documents, copies of which, in the form approved by the Bankruptcy Court, are attached hereto as Exhibits 10.1 through 10.6.

~~In connection with the Chapter~~Section 11 Case, the Debtor filed or will file a motion seeking Bankruptcy Court approval of the DIP Credit Agreement and related agreements, between the Debtor and Persistency (the “Lender”), substantially in the form attached to the aforementioned motion filed with the Bankruptcy Court. As contemplated by the motion filed with the Bankruptcy Court, the DIP Credit Agreement provides for a credit commitment to the Debtor of one or more advances aggregating up to $1.2 ~~million.~~ ~~The~~— ~~proceeds~~Financial ~~from the advances, which may not be paid off and~~Information reborrowed, and other financial accommodations incurred under the DIP Credit Agreement will be used, among other things, to repay outstanding amounts due under a bridge loan of up to $550,000 previously provided by Persistency to CanArgo Limited, Debtor’s wholly owned Guernsey subsidiary, certain outstanding professional fees incurred by Persistency and to provide the Debtor with working capital for general corporate purposes. The DIP Credit Agreement contains events of default and includes certain financial covenants and the amount of the obligations of the Debtor under the loan documents is secured by all the assets of the Debtor and guarantees of the Debtor’s principal subsidiaries.

Item 2.0403 ~~Triggering~~Creation ~~Events~~of ~~That Accelerate or Increase~~ a Direct Financial Obligation or an Obligation ~~Under~~under an Off-Balance Sheet Arrangement of a Registrant.

The ~~filing~~information ofset ~~the~~forth ~~Chapter 11~~under ~~Case described in~~ Item 1.03 of“Bankruptcy ~~this report constituted an event of default under,~~ or otherwise triggered repayment obligations with respect to, debt instruments and credit agreements relating to direct and indirect financial obligations of the Debtor under the Note Purchase Agreement dated as of March 3, 2006 by and among CanArgo Energy Corporation and the Purchasers named therein, including the forms of the Senior Subordinated Convertible Guaranteed Notes due September 1, 2009 and Note Purchase Agreement dated as of June 28, 2006 by and among CanArgo Energy Corporation and the Purchaser named therein, including the forms of the 12% Subordinated Convertible Guaranteed Note due June 28, 2010, as each such Agreement has been amended and is in force (collectively, the “Note Purchase AgreementsReceivership”) ~~as well as under certain other obligations of Debtor. The Debtor~~ is ~~currently~~incorporated inherein ~~default of its payment obligations under the~~by ~~Note Purchase Agreements and certain of its other financial obligations~~reference. ~~All obligations under the~~ Note Purchase Agreements and such financial obligations will become automatically and immediately due and payable upon commencement of the Chapter 11 Case. The Debtor believes that any efforts to enforce the payment obligations under the Note Purchase Agreement and such other financial obligations against the Debtor will be stayed as a result of the filing of the Chapter 11 Case in the Bankruptcy Court. The amount of principal and interest due and payable as of October 27, 2009 under the Note Purchase Agreements and notes issued thereunder was approximately $18.1 million.

~~Section~~Item ~~9—Financial~~8.01 ~~Statements~~Other ~~and Exhibits~~Events.

~~Item~~Periodic ~~9.01. Financial Statements and Exhibits.~~Reports

Under the Bankruptcy Code and related rules, the Company is required to file certain information and periodic reports with the Bankruptcy Court. The reports are limited in scope, cover a limited time period and will be prepared solely for the purpose of the Debtor’s compliance with the reporting requirements of the Bankruptcy Court. The financial information in the reports will not be audited or reviewed by independent registered accountants and will not be presented in accordance with generally accepted accounting principles, will be in a format prescribed by applicable bankruptcy laws and will be subject to future adjustment and reconciliation. There can be no assurance that the reports will be complete. The reports also will contain information for periods which may be shorter or otherwise different from those contained in reports required pursuant to the Securities Exchange Act of 1934, as amended (dthe “Exchange Act”) ~~Exhibits:~~. The reports will not include footnotes that would ordinarily be contained in the financial statements in the Company’s quarterly and annual reports pursuant to the Exchange Act. In addition, the income tax provision in the reports will be difficult to ascertain as a result of many factors, including, among other things, the Company’s inability to predict taxable income that may be generated as a result of any cancellation of indebtedness that might occur as a result of the bankruptcy proceeding involving the Company. Results set forth in the reports should not be viewed as indicative of future results.

Exhibit No.		Exhibit Description
10.1		Plan Support and Lock-Up Agreement
10.2		Commitment Letter Agreement dated October 22, 2009

Bankruptcy Materials

On October 28, 2009, the Company filed certain materials with the Bankruptcy Court (together with future filings with the Bankruptcy Court, the “Bankruptcy Materials”). The Bankruptcy Materials contain unaudited summary financial information relating to the Company’s assets and liabilities and operating results in the form required under the Bankruptcy Code and the rules and regulations thereunder. The Bankruptcy Materials are available to the public via the Bankruptcy Court’s Case Management/Electronic Case Filing system at http://ecf.mdb.uscourts.gov and in paper format at the following address: Bankruptcy

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Clerk’s Office, U.S. Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, NY 10004-1408 (telephone number: (212) 668-2870).

The Bankruptcy Materials contain financial information that has not been and will not be audited or reviewed by independent registered accountants and is and will not be not presented in accordance with generally accepted accounting principles. The information contained in the Bankruptcy Materials has been and will be prepared in accordance with the Bankruptcy Code and the rules and regulations thereunder and was not and will not be prepared for the purpose of providing a basis for an investment decision relating to any securities of the Company. The Bankruptcy Materials also contain information for periods that are shorter or otherwise different from those required by the periodic reporting requirements of the Exchange Act, and the rules and regulations thereunder, and such information may not be indicative of the Company’s financial condition or operating results for the period that would be reflected in its financial statements or in its reports pursuant to the Exchange Act or the rules and regulations thereunder. Results set forth in the Bankruptcy Materials should not be viewed as indicative of future results. There can be no assurance that the Bankruptcy Materials are complete. The Company may amend, supplement or otherwise change the information contained in the Bankruptcy Materials at a future date.

Item 9.01 Financial Statements and Exhibits.

(d)

Exhibits.


Exhibit No.		Description
10.1		Debtor in Possession Financing Agreement
10.2		Form of Secured Promissory Note
10.3		Form of Security Agreement
10.4		Form of U.S. Pledge Agreement
10.5		Form of Guernsey Pledge Agreement
10.6		Form of Subsidiary Guarantee

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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 thereunto duly authorized.

	CANARGO ENERGY CORPORATION
Date: October 28, 2009	By:	/s/ Vincent McDonnell
Date: November 3, 2009	By:	/s/ Vincent McDonnell
		Vincent McDonnell, President

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