Castex disclosure statement conditionally OK’d; plan hearing May 27

By Sarah Lizee

Olympia, Wash., April 27 – Castex Energy 2005 Holdco, LLC received conditional approval of the disclosure statement for its Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan confirmation hearing is scheduled for May 27.

The proposed plan will provide for the appointment of a plan administrator to resolve claims, make distributions and administer the assets of the debtors, as previously reported.

Administrative expense claims, priority tax claims and priority non-tax claims will be paid in full.

Holders of other secured claims will retain their security interest and relative priority in the applicable assets of the post-effective date debtors, or receive other treatment that will leave their claims unimpaired.

Holders of secured debt claims will receive their pro rata share of the equity interests in a newly formed entity owned by the pre-petition lenders. On the effective date, the debtors will transfer to the new entity the Apache Corp. claims, the Talos Energy Inc. shares, and cash of the debtors, other than the liquidating trust cash reserve, amounts in the 2017 Chapter 11 unsecured creditor reserve, cash to be deposited into the professional fee escrow amount and amounts for the payment of priority non-tax claims or administrative expense claims.

Holders of general unsecured claims will receive their pro rata share of interests in a liquidating trust, provided that only in the event this class votes to accept the plan, then the pro rata share of the liquidating trust interests allocable to the deficiency claims will not be distributed to the pre-petition lenders, but will instead be re-allocated to all holders of general unsecured claims other than the pre-petition lenders.

Intercompany claims and intercompany interests will be adjusted, reinstated or discharged.

Existing interests will be canceled, released and extinguished with no distribution.

Houston-based Castex is engaged in the exploration, development, production and acquisition of oil and natural gas properties. The company filed bankruptcy on Feb. 26 under Chapter 11 case number 21-30710.

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