Halcon Resources committee’s plan hearing continuance motion denied

By Caroline Salls

Pittsburgh, Sept. 13 – A motion by Halcon Resources Corp.’s official committee of unsecured creditors to continue the hearing on confirmation of the company’s pre-packaged plan of reorganization was denied Thursday by the U.S. Bankruptcy Court for the Southern District of Texas.

“In light of the debtors’ efforts to de-lever its capital structure by equitizing $644,600,000 in funded, unsecured debt, the unsecured creditors certainly deserve a fully briefed advocate to protect their rights,” the motion said.

In addition, the committee said the unsecured creditors deserve enough time to negotiate the proposed plan’s treatment of their claims.

The committee said the extra time would allow it to meet with Halcon “to consensually resolve obvious flaws infecting the core of the transactions contemplated by the proposed plan.”

Although judge David R. Jones denied the committee’s motion, he said in Thursday’s order “if the debtors are wrongfully refusing to provide the committee with access to information, the court will consider a supported request for specific relief on an emergency basis.”

The judge also warned the creditors that “a position on an official committee is not an opportunity to exercise leverage for personal agendas at the expense of others.”

The plan confirmation hearing is scheduled for Sept. 24.

Halcon is a Houston-based independent energy company. The company filed bankruptcy on Aug. 7 under Chapter 11 case number 19-34446.

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