Tuscany International Drilling Plan Filed, Disclosure Statement Approved


Tuscany International Drilling filed with the U.S. Bankruptcy Court a Joint Plan of Reorganization and related Disclosure Statement. According to the documents filed with the Court, “The Plan contemplates certain transactions, including, without limitation, the following transactions…: a newly-formed entity (the ‘NewCo’) organized by certain of the Prepetition Lenders for the purpose of consummating the transactions by this Plan will credit bid a principal amount of the Prepetition Credit Agreement Claims and/or DIP Facility Claims to be determined in exchange for all of the Purchased Assets of HoldCo (including its Equity Interests in TIH and certain Non-Debtor Affiliates)….the DIP Facility Claims will be satisfied in (i) Cash equal to the amount of such DIP Facility Claim; (ii) such other less favorable treatment as to which the Debtors or Reorganized Debtors, as applicable, and the Holder of such DIP Facility Claim shall have agreed upon in writing; or (iii) such other treatment specified in Article III.B.4 of the Plan with the written consent of the DIP Facility Agent and Required DIP Lenders; the Holders of Prepetition Credit Agreement Claims and/or DIP Facility Claims will have their claims partially satisfied through the Purchase Price Credit Bid Component comprised of the Prepetition Credit Agreement Claims and/or DIP Facility Claims and their remaining Prepetition Credit Agreement Claims and/or DIP Facility Claims with respect to Holdco will be repaid in full and/or refinanced or replaced by obligations of NewCo (guaranteed by all Non-Debtor Obligors (as defined in the Credit Agreement)) under any Exit Facility; the Holders of General Unsecured Claims Against HoldCo and Intercompany Claims will not receive any recovery under the Plan; all Old Affiliate Interests in Affiliate Debtor shall remain effective on the Effective Date and be transferred to the Proposed Purchaser as part of the Purchased Assets; and all Old HoldCo Interests will be cancelled on the Effective Date.” The Court subsequently entered an order approving the Disclosure Statement and scheduled a May 19, 2014 hearing to consider the Plan.

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