Midstates support deal changes extend deadlines, revise plan terms

By Caroline Salls

Pittsburgh, Sept. 7 – Midstates Petroleum Co., Inc. entered into a second amendment to its plan support agreement that extends the deadlines for confirmation and the effective date of the company’s Chapter 11 plan and revises some plan terms, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Specifically under the amendment, the plan must be confirmed by Oct. 14 and must take effect by Oct. 31, subject to extension with the written consent of the first-lien lenders and second-lien noteholders.

In addition, the amendment incorporates changes to an intercreditor agreement under which the equity in reorganized Midstates must be allocated 92.9% on account of pre-bankruptcy collateral and 7.1% on account of unencumbered assets, revised from 98.8% and 1.2%, respectively.

Under the plan, the percentage of unencumbered assets equity distribution received by holders of unsecured notes claims and general unsecured claims cannot exceed 3.7% of the new common stock, subject to dilution by a management incentive plan and equity issuable upon the exercise of warrants.

Holders of second-lien notes claims will now receive a share of 97.5% of the new Midstates equity, up from 96.3%, minus the unencumbered assets equity distribution, as well as excess cash. However, if a settlement is not approved and completed as part of the plan, the second-lien noteholders will receive 100% of the new equity, up from 98.8%, minus the unencumbered assets equity distribution, as well as excess cash and a share of the unencumbered assets distribution on account of their deficiency claims.

Midstates Petroleum, a Tulsa, Okla.-based exploration and production company, filed for bankruptcy on April 30 in the U.S. Bankruptcy Court for the Southern District of Texas. The Chapter 11 case number is 16-32237.

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