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.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.