BankruptcyData’s detailed analysis and summary of Triangle USA Petroleum’s Third Amended Joint Chapter 11 Plan of Reorganization, dated March 8, 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 provides for an equitable distribution of recoveries to the Debtors’ creditors, preserves the value of the Debtors’ business as a going concern, and preserves the jobs of employees. The Debtors believe that any alternative to confirmation of the Plan, such as liquidation or attempts by another party in interest to file a plan, could result in significant delays, litigation and costs, job loss, and/or lesser recoveries.”
In addition, “The Plan provides for the Reorganized Debtors’ future operations, which will be funded in part by a new senior secured, reserve-based Exit Facility, with an anticipated initial borrowing base of $250 million and a new-money Rights Offering, through which Eligible Holders of TUSA General Unsecured Claims may subscribe for the purchase of up to approximately $180 Million of Rights Offering Securities. Certain members of the Ad Hoc Noteholder Group have agreed to backstop $150 million of the Rights Offering.”
BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for Reorganized Triangle USA Petroleum estimates the Net Liquidation Proceeds Available for Distribution to be between $341.9 million and $405.6 million. The recovery rate to the Class 2–Other Secured Claims is estimated to be 100%, the Class 3–RBL Claims is estimated to be between 99% and 100%, and the Class 5–TUSA General Unsecured Claims is estimated to be between 1% and 17%.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Triangle USA Petroleum’s June 29, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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