Energy XXI filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan and related Disclosure Statement. The Plan includes a restructuring support agreement, which outlines the following key terms: “Reorganized EGC becomes the New Parent and issues New Equity….On the Effective Date, new common stock in EGC will be issued and distributed…and the New Parent will hold substantially all of the assets of Energy XXI and its subsidiaries. Second Lien Noteholders receive the New Equity. The Second Lien Noteholders will Receive 100% of the New Equity, subject to dilution in connection with the Warrant Package and Management Incentive Plan….The Warrant Package will consist of warrants equal to an aggregate of up to 10% of the New Equity, with a maturity of 10 years and an agreed-upon strike price. The Warrant Package is divisible among the classes of EGC Unsecured Notes Claims, EPL Unsecured Notes Claims, and EXXI Convertible Notes Claims….If, however, any such class votes to reject the Plan, it will not receive a distribution thereunder.”
The Disclosure Statement continues, “John D. Schiller, Jr. has agreed to remain on the New Parent Board and to serve as the chief executive officer (the ‘CEO’) of the New Parent. Energy XXI files a winding-up proceeding in Bermuda. Energy XXI will file a winding-up petition and commence an official liquidation proceeding in Bermuda under Bermudian law….The Plan will include mutual releases and exculpation provisions in favor of (a) the Debtors and their related persons, professionals, and entities, and (b) the Restructuring Support Parties and their related persons, professionals, and entities.”
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