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: March 1230, 2010

(Date of earliest event reported)

SOUTHERN STAR ENERGY INC.

(Exact Name of Registrant as Specified in Charter)

Nevada

(State or Other Jurisdiction of Incorporation)

000-52106

(Commission File Number)

20-2514234

(IRS Employer Identification No.)

110 CYPRESS STATION DRIVE, SUITE 152, HOUSTON, TEXAS 77090

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code: (832) 375-0330

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:

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))

Item 81.0103 Bankruptcy ~~Other~~or ~~Events~~Receivership.

As previously disclosed in the Registrant’s Current Report on Form 8-K, dated February 9, 2010, on February 3, 2010, the Registrant received a notice of acceleration (the “Notice of Acceleration”) from Macquarie Bank Limited (“Macquarie”) pursuant to which the Registrant’s obligations under its credit agreement with Macquarie (the “Credit Agreement”) were accelerated and became immediately due and payable. On ~~Under~~March ~~the~~30, ~~Notice of Acceleration~~2010, ~~the~~Macquarie ~~Registrant~~filed ~~was~~a foreclosure ~~notified~~petition ~~that~~(the ~~Macquarie~~“Petition”) ~~may~~in ~~exercise~~Bossier ~~any~~Parish, ~~and~~Louisiana ~~all~~pursuant ofto which ~~its~~Macquarie ~~legal~~will ~~rights~~foreclose ~~and~~upon ~~remedies~~the ~~available~~collateral ~~under~~securing the Credit Agreement, towhich ~~secure~~includes ~~repayment~~the ofRegistrant’s ~~the~~oil ~~principal~~and ~~amount~~gas ofleases $5(the “Collateral’). On March 31,~~000~~ 2010,~~000~~ ~~outstanding~~the ~~under~~26th Judicial ~~the~~District ~~Credit~~Court ~~Agreement,~~for ~~including~~the ~~without~~Parish ~~limitation,~~of ~~foreclosing~~Bossier, ~~liquidating~~State orof ~~realizing~~Louisiana ~~upon~~(the “Court”) ~~all~~ordered orthat ~~any~~a ~~portion~~Writ of Seizure and Sale be issued immediately (the “Writ”). The ~~collateral~~Writ ~~securing~~directs the ~~Credit~~Sherriff ~~Agreement.~~of ~~The~~Bossier ~~Registrant~~Parish ~~does~~to ~~not~~seize ~~have~~and ~~sufficient~~foreclose ~~current~~on ~~assets~~the Collateral to ~~repay~~pay and satisfy the ~~combined~~claim ~~principal~~of ~~and~~Macquarie ~~interest~~(the “Foreclosure”), ~~outstanding~~with ~~under~~preference over the ~~Credit~~claims ~~Agreement~~of ~~and~~all ifother ~~Macquarie~~persons ~~forecloses~~and entities ~~upon~~against the ~~collateral~~Registrant. The ~~securing~~Court ~~the~~also ~~Credit~~ordered ~~Agreement~~that White Stone Energy, L.L.C. be appointed as keeper of the ~~Registrant~~Collateral ~~will~~subject ~~lose~~to ~~its~~the Writ. As ~~oil~~a ~~and~~result ~~gas~~of ~~properties~~the ~~and~~Foreclosure, the Registrant will be ~~unable~~cease to operate ~~continue~~ as a going concern.

In response to the Notice of Acceleration, on March 12, 2010, management sent a letter to the Registrant’s creditors (the “Creditors”) proposing the conversion of the Registrant’s liabilities into equity of the Registrant (the “Proposal”). Pursuant to the Proposal, the Registrant will convert the liabilities owed to the Creditors into shares of common stock of theItem ~~Registrant at a conversion price of $0~~8.0501 Other ~~per share of common stock of the Registrant~~Events. The conversion of the Registrant’s existing liabilities into equity of the Registrant will result in the Creditors owning approximately 70-75% of the equity of the Registrant post-conversion. Under the Proposal, management has proposed to promulgate a new business model pursuant to which management will attempt to create value for the Creditors and the Registrant’s existing shareholders by identifying and executing on new business opportunities within the oil and gas industry. There is no guarantee that such strategy will be successful.

~~The~~As previously disclosed in the Registrant’s ~~board~~Current ofReport ~~directors~~on ~~recognizes~~Form ~~that~~8-K, ~~the~~dated ~~Proposal~~March 17, ~~will~~2010, ~~result~~ in ~~substantial~~response ~~dilution~~ to the ~~Registrant’s~~Notice ~~existing~~of ~~shareholders~~Acceleration, ~~and~~on ~~will~~March ~~shift~~12, ~~ownership~~2010, management ofsent a letter to the Registrant’s tocreditors (the “Creditors.”) proposing ~~Nevertheless,~~the conversion of the Registrant’s ~~board~~liabilities ofinto ~~directors~~equity ~~has~~of ~~consented~~the Registrant to (the “Proposal”). On inMarch ~~order~~31, to2010, ~~enable~~ the Registrant sent a letter to ~~continue~~the asCreditors ainforming ~~going~~them ~~concern.~~that ~~Management~~the ~~has~~Petition ~~deemed~~had ~~the~~been ~~Proposal~~filed and ~~feasible~~stating ~~only~~that ifas ~~100%~~the ofRegistrant ~~the~~had ~~Creditors~~not ~~agree~~received tosufficient ~~participate~~positive interest in the Proposal, the Proposal was withdrawn. Due ~~Anything~~to ~~less~~the ~~that~~Foreclosure, ~~100%~~the Registrant ~~participation~~is ~~will~~currently ~~leave~~in the ~~Registrant~~process ~~with~~of andrafting ~~unworkable~~a ~~capital~~final ~~structure~~letter to the Creditors and ~~render~~other operationally related entities informing them that the Registrant ~~Proposal~~and ~~void~~its wholly-owned subsidiary Southern Star Operating, Inc. are ceasing corporate operations.

The Registrant will hold the Proposal open until the close of business on March 26, 2010. Based on the results of responses to the Proposal from the Creditors, management will make a final determination as to whether or not to move forward with the Proposal at that time.SIGNATURES

~~The~~In accordance ~~shares~~with ofthe ~~common~~requirements ~~stock~~ of the ~~Registrant~~Securities ~~to be issued to the Creditors pursuant to the Proposal have not been~~ and ~~will~~Exchange ~~not be registered under the United States Securities~~ Act of ~~1933~~1934, asthe registrant ~~amended,~~has orduly ~~any~~caused ~~applicable~~this ~~state~~report ~~securities~~to ~~laws and may not~~ be ~~offered~~signed oron ~~sold~~its inbehalf by the undersigned ~~United~~thereunto ~~States~~duly ~~absent such registration or an applicable exemption from such registration requirements~~authorized.

~~SIGNATURES~~SOUTHERN STAR ENERGY INC. (Registrant)

InDated: ~~accordance~~April ~~with the requirements of the Securities and Exchange Act of 1934~~7, ~~the~~2010 ~~registrant~~By: ~~has~~/s/ ~~duly~~William ~~caused~~David ~~this~~Gibbs ~~report~~William toDavid beGibbs ~~signed~~Chief onExecutive ~~its~~Officer, ~~behalf~~President byand ~~the undersigned thereunto duly authorized.~~ Secretary

SOUTHERN STAR ENERGY INC. (Registrant)

Dated: March 17, 2010 By: /s/ William David Gibbs William David Gibbs Chief Executive Officer, President and Secretary

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