Trident Resources statement approved; plan hearing set for June 15

By Caroline Salls

Pittsburgh, May 6 - Trident Resources Corp. received court approval of the disclosure statement for its plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for June 15.

As previously reported, the plan is based on completion of a sale and investor solicitation process.

Trident requested court approval in February to enter into a commitment letter with a group of its largest stakeholders for a $200 million equity rights offering.

Trident said the group has agreed to backstop the $200 million rights offering, under which 60% of the new common stock to be issued by the reorganized company will be offered to holders of 2006 and 2007 credit agreement claims.

Holders of 2006 credit agreement claims will be entitled to purchase $150 million of the new common stock, and holders of 2007 credit agreement claims will be entitled to purchase $50 million of the stock.

Under the company's proposed plan of reorganization, Trident's consolidated funded debt would be reduced to $400 million from $1.2 billion, in part through complete satisfaction of the obligations under its 2006 and 2007 credit agreements.

Plan creditor treatment will include:

• Holders of other priority claims will be paid in full in cash;

• Other secured claims will be reinstated and holders will either be paid in full in cash, receive the proceeds of the sale of the collateral securing the claim or receive the collateral;

• Holders of general unsecured claims and Trident Resources interests will receive no distribution;

• Holders of 2006 credit agreement claims will receive a share of 2006 new common stock and senior creditor rights;

• Holders of 2007 loan agreement claims will receive junior creditor rights; and

• Affiliated debtor interests and intercompany claims will remain effective.

Trident, a Calgary, Alta.-based natural gas production company, filed for bankruptcy on Sept. 8, 2009. Its Chapter 11 case number is 09-13150.

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