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October 11, 2018 – Nighthawk Energy filed with the Court an Amended Plan of Liquidation [Docket No. 215] and a related Disclosure Statement [Docket No. 216]. The Disclosure Statement notes, “The Plan proposed in these Chapter 11 Cases is the culmination of the Debtors’ efforts to maximize value for creditors and other parties in interest through the sale of substantially all of the assets of Nighthawk Production and the orderly wind-down of the Debtors’ remaining assets and interests. The Plan provides generally for the preservation and transfer of all remaining assets of the Debtors to a Liquidating Trust to be administered by a Liquidating Trustee for the benefit of all creditors….Allowed Administrative Claims (including Allowed Professional Fee Claims) and U.S. Trustee Fee Claims will be paid in full as required by the Bankruptcy Code, unless otherwise agreed to by the Debtors or the Liquidating Trustee, as applicable, and the Holders of such Claims. Debtor releases and consensual third-party releases in favor of, among others, CBA, as the Debtors’ senior secure lender.”
The Plan provides the following detail as to classes, claims, voting rights and projected recoveries:
- Class 1 (“Other Priority Claims “) is unimpaired, deemed to accept and not entitled to vote on the Plan. The projected amount of claims is $0.00 and projected recovery is 100%.
- Class 2 (“Senior Secured Claims”) is impaired and entitled to vote on the Plan. The projected amount of claims is $0 -$6,250,000 and projected recovery is 0-100%.
- Class 3A (“Unsecured Claims against Nighthawk Energy”) is impaired and entitled to vote on the Plan. The projected amount of claims is $36,423,546.30-$42,673,546.30 and projected recovery is 0-100%.
- Class 3B (“Unsecured Claims against Nighthawk Royalties”) and Class 3C (“Unsecured Claims Nighthawk Production”) and Class 3D (“ Unsecured Claims against OilQuest”) are impaired and entitled to vote on the Plan. The projected amount of claims is $0-$6,250,000. and projected recovery is 0-100%.
- Class 4 (“Intercompany Claims between the Debtors”) and Class 5 (“Existing Equity Interests in the Debtors”) are impaired, deemed to reject and not entitled to vote on the Plan. Projected recovery is 0%.
The Court subsequently gave conditional approval [Docket No. 221] to the Disclosure Statement and scheduled a November 28, 2018 combined hearing to consider approval of the Disclosure Statement and Plan Confirmation.
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