Ultra Petroleum filed with the U.S. Bankruptcy Court a Second Amended Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “On December 6, 2016, the Debtors filed a plan of reorganization consistent with the Plan Support Agreement. Thereafter, in an effort to generate greater stakeholder consensus, the Debtors entered into the Exit Financing Agreements and obtained entry of the Exit Financing Order, which will clear the way for the Reorganized Debtors to enter into the Exit Facility (the proceeds of which will permit the Debtors or the Reorganized Debtors to satisfy all OpCo Funded Debt Claims in full in Cash). In connection therewith, the Debtors modified the Plan to provide for the Exit Facility and certain related transactions.”
In addition, “The principal settlement contemplated by the Plan is the Debtors’ settlement with their HoldCo stakeholders. The Debtors believe that this settlement, which will fund all distributions under the Plan, is in the best interests of all stakeholders because it will: (1) permit the Debtors to satisfy all Claims against the Debtors in full; (2) permit the Debtors to provide a significant recovery to HoldCo’s equityholders; and (3) permit the Debtors to expeditiously emerge from chapter 11 and eliminate the need to continue to pay significant professional fees and expenses. In addition to the Debtors’ settlement with their HoldCo stakeholders, the Plan contemplates a settlement of the $303 million General Unsecured Claim asserted by REX against OpCo….Finally, the plan contemplates treatment for the OpCo funded debt creditors that pays Allowed OpCo Funded Debt Claims in full in Cash.”
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