BankruptcyData’s detailed analysis and summary of Chaparral Energy’s First Amended Joint Plan of Reorganization, dated March 7, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on March 10, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Plan means that the Reorganized Debtors will continue to operate its businesses going forward and does not mean that the Debtors will be liquidated or forced to go out of business. Under the Plan, Chaparral Energy’s unsecured bondholders and general unsecured creditors will own 100% of the Company’s ownership interest, subject to some dilution. The Debtors’ capital structure, upon emergence, will include its cash on hand and a reserve based lending facility with an initial borrowing base of $225 million, as well as an additional $150 million term loan. Both the revolver and term loan will mature in four years. In addition, the Plan includes $50 million of new money equity from a rights offering. The Company expects to have liquidity in excess of $100 million upon emergence.”
BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for Reorganized Chaparral Energy estimates the Net Proceeds Available for Distribution to be between $788.1 million and $1,007.2 million. The recovery rate to the Class 3 – Secured Tax Claims and Class 4 – Prepetition Credit Agreement Claims is estimated to be 100%. The recovery rates to Class 5 – Prepetition Notes Claims and Class 6 – General Unsecured Claims are estimated to be 19% to 36%.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Chaparral Energy’s May 9, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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