Ryckman Creek statement approved; plan confirmation hearing Sept. 7

By Caroline Salls

Pittsburgh, Aug. 5 – Ryckman Creek Resources, LLC received court approval of the disclosure statement for its plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Sept. 7.

As previously reported, Ryckman and its Peregrine Midstream Partners LLC, Peregrine Rocky Mountains LLC and Ryckman Creek Resources Holding Co. LLC affiliates entered into a plan support agreement with some holders of their secured loans.

Ryckman said the agreement will allow it to restructure the companies’ balance sheets, eliminating more than $160 million from the balance sheet, providing significant working capital and converting a substantial amount of pre-bankruptcy debt to equity.

Creditor treatment

Administrative claims, priority tax claims and other priority claims will be paid in full in cash.

Debtor-in-possession facility claims will be converted into an up to $35 million exit facility.

Other secured claims will be reinstated or paid in full in cash, or holders will receive the collateral securing the claims.

Holders of pre-bankruptcy secured credit agreement claims and hedging agreement secured claims will receive new notes and new holding company equity.

Holders of secondary tranche A completion loan secured claims will receive series A-1 senior notes.

Holders of tertiary tranche B completion loan secured claims will receive series B senior notes.

Holders of tranche A completion loans of DIP lenders will receive series A-2 senior notes.

Holders of other initial tranche A completion loan secured claims will receive series A junior notes after distributions to holders of tranche A completion loans of DIP lenders.

Holders of secondary tranche B completion loan secured claims will receive series B junior notes.

Holders of initial tranche B completion loan principal secured claims will receive new hybrid notes.

Holders of initial tranche B converted interest secured claims will receive new class B preferred units and new class B common units.

Holders of term loan secured claims of DIP lenders and tranche A completion loan lenders will receive series A-1 preferred units based on the amount of DIP facility claims of each holder, series A-2 preferred units based on the amount of tranche A completion loan principal claims of each holder after reduction for the amount by which the holder’s DIP facility claims exceed its junior term loan claims, series A-3 preferred units based on the amount of term loan claims held by each after reduction for the amount of tranche A completion loan principal claims and the amount of DIP facility claims of the holder and new class A common units based on the amount of term loan claims and hedging agreement secured claims held.

Holders of other term loan secured claims and hedging agreement claims will receive series A-3 preferred units based on the amount of term loan claims held by each after reduction for the amount of tranche A completion loan principal claims and the amount of DIP facility claims of the holder and new class A common units based on the amount of term loan claims and hedging agreement secured claims held.

Holders of pre-bankruptcy credit agreement deficiency claims and hedging agreement deficiency claims will receive a share of the proceeds from unencumbered assets, provided however that they will waive their recovery if holders of general unsecured claims vote to accept the plan.

Holders of general unsecured claims will receive a share of value-sharing rights, an upfront fee consideration, new notes, preferred units and a convenience claim excess balance.

Holders of interests, intercompany claims and subordinated claims will receive no distribution.

Ryckman Creek is a Houston-based gas storage services company. It operates as a subsidiary of Peregrine Midstream Partners, LLC. Ryckman filed for reorganization under Chapter 11 on Feb. 2, 2016. The case number is 16-10292.

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