Delta Petroleum's reorganization plan confirmed, despite objections

By Lisa Kerner

Charlotte, N.C., Aug. 16 - Delta Petroleum Corp.'s third amended joint Chapter 11 plan of reorganization was confirmed, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan had been rejected by three of 18 classes of voting creditors, and was unanimously accepted by six voting classes.

The plan had also drawn objections from indenture trustee U.S. Bank NA and from the U.S. Trustee for Region 3.

Under the plan, treatment of creditors includes:

• Priority non-tax claim and other secured claims will be paid in full in cash on the effective date;

• General unsecured claim will receive either 15% of the allowed amount of the claim in cash or a share of 100% of the new common stock of reorganized Delta;

• Noteholder claims will receive a share of 100% of the new common stock of reorganized Delta;

• Intercompany claims against the debtors will receive no recovery;

• All existing Delta equity interests will be canceled and the holders will receive no value;

• Holders of securities litigation claims will receive no recovery; and

• All intercompany equity interests will be reinstated on the effective date.

Delta Petroleum, a Denver-based oil and gas exploration and development company, filed for bankruptcy on Dec. 15. Its Chapter 11 case number is 11-14006.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.