Ultra Petroleum Bankruptcy Stipulation Filed


Ultra Petroleum filed with the U.S. Bankruptcy Court a stipulation regarding reserve for disputed Opco funded debt claims and resolution of an objection to the Debtors’ Second Amended Joint Chapter 11 Plan of Reorganization.

According to the stipulation, “Without limiting the amounts due on the Effective Date pursuant to paragraph 16 hereof, on the Effective Date, the Debtors shall satisfy in full in Cash the principal amount of, the amendment fees, accrued prepetition interest at the contractual default rate, and postpetition interest at the Federal Judgment Rate as of the Petition Date in respect of the OpCo Funded Debt Claims in an aggregate amount of $2,538,251,561.05.”

In addition, “Prior to the Effective Date, the Debtors will open a new interest bearing account at Bank of America, National Association (the ‘Depositary Bank’) over which the Exit Facility Lenders will not have control (the ‘Reserve Account’), the sole purpose of which will be to hold funds in trust for the benefit of the holders of the Allowed Class 4 Claims and that will be used to satisfy the Disputed Class 4 Claims that are Allowed by the Court after the Effective Date….Within two (2) business days of the Effective Date, the Debtors or the Reorganized Debtors, as applicable, will cause $400,000,000.00 to be deposited in the Reserve Account.”

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