Ryckman Creek fourth amended reorganization plan takes effect Dec. 27

By Caroline Salls

Pittsburgh, Dec. 28 – Ryckman Creek Resources, LLC’s fourth amended plan of reorganization took effect on Dec. 27, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Dec. 22.

As previously reported, the plan was filed after Ryckman announced that it had entered into a new plan sponsorship agreement with Belle Butte LLC.

The agreement calls for Belle Butte to purchase 80% of class B membership interests for $18.2 million in cash, including $7.2 million in up-front cash to be paid to a liquidating trust on the plan effective date, as well as a $10 million plan sponsor note.

Under the plan, administrative claims, priority tax claims and other priority claims will be paid in full in cash.

Holders of first-out debtor-in-possession facility claims will receive any cash returned to the debtors, reorganized Ryckman or the liquidating trust established under the plan from a utility deposit account, as well as other cash payments.

Holders of other DIP facility claims will receive DIP interests and, after all cash-settled claims have been paid in full, a plan sponsor excess consideration. If a creditor in this class refuses its distribution of DIP common units, it will receive a share of plan sponsor call option incremental consideration.

Holders of statutory lien claims will receive a share of a class 1 settlement pool if it makes a class 1 election or, if it does not make the election, assumption of the claim by the liquidating trust and a replacement lien.

Holders of unsecured claims will receive a share of class 3 interests.

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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