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Penn Virginia Plan Filed

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Penn Virginia filed with the U.S. Bankruptcy Court a First Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “The core terms of the Restructuring Support Agreement will be implemented through a chapter 11 plan of reorganization under which: holders of administrative and priority Claims shall be paid in full, in cash on the Effective Date; holders of DIP Claims shall receive payment in full, in cash on the Effective Date, funded from cash on hand and the proceeds of the Exit Facility and the Rights Offering; holders of Other Secured Claims shall receive such treatment as to render their claims unimpaired; holders of RBL Claims shall receive payment in full, in cash on the Effective Date, funded from cash on hand and the proceeds of the Exit Facility and the Rights Offering; holders of Note Claims and holders of General Unsecured Claims, collectively, shall each receive their pro rata share of an aggregate of 100% of the New Common Stock on the Effective Date, subject to dilution on account of the Management Incentive Plan Equity, any fees payable in New Common Stock under the terms of the Backstop Commitment Agreement (including the Commitment Premium), and the New Common Stock issued in the Rights Offering; holders of Note Claims shall also be entitled to participate in the Rights Offering in accordance with the Backstop Commitment Agreement, the Restructuring Support Agreement, the Plan, and certain Rights Offering Procedures; all existing Interests in Penn Virginia shall be cancelled, extinguished, and discharged; and intercompany Claims and Interests shall be reinstated or cancelled at the Debtors’ or the reorganized Debtors’ option”

The Disclosure Statement continues, “In short, the Restructuring Support Agreement provides the Debtors with the resources and flexibility to pursue a value-maximizing restructuring transaction.” The Court scheduled a June 27, 2016 hearing to consider the Plan. Read more Penn Virginia bankruptcy news.