Cubic Energy pre-packaged reorganization plan effective as of March 1

By Caroline Salls

Pittsburgh, March 1 – Cubic Energy, Inc.’s third amended pre-packaged plan of reorganization took effect on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.

The plan was confirmed on Feb. 17 by the U.S. Bankruptcy Court for the District of Delaware.

Under the plan:

• All existing equity interests in the Cubic parties will be canceled, including the company’s common stock;

• In exchange for the release and discharge of their pre-bankruptcy claims, affiliates of the company’s pre-bankruptcy noteholders will receive 100% of the equity interests in the reorganized company, as well as new senior secured notes issued by the reorganized company;

• Holders of general unsecured claims will receive no distribution; and

• Wells Fargo Energy Capital, Inc. will receive, in exchange for the release and discharge of its pre-bankruptcy claims, 100% of the equity interest in the reorganized Cubic Louisiana companies.

The company said in the 8-K that it was converted into a Delaware limited liability company on the effective date.

Cubic is an oil and gas exploration and production company based in Dallas. The company filed bankruptcy on Dec. 11 under Chapter 11 case number 15-12500.

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