Ultra Petroleum second amended reorganization plan effective Sept. 14

By Caroline Salls

Pittsburgh, Sept. 15 – Ultra Petroleum Corp.’s second amended plan of reorganization took effect on Monday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan was confirmed on Aug. 22.

As previously reported, Ultra Petroleum filed Chapter 11 bankruptcy after agreeing to the terms of a comprehensive balance sheet restructuring with key creditor constituencies, more specifically including holders of 100% of the loans under its first-lien revolving bank loan credit facility, 85% of the loans under its first-lien term loan and 67% of its second-lien notes.

Under the plan, holders of first-lien RBL claims will receive either an exit RBL lender cash election amount equal to 85% of the claim if the holder provided the company with an executed signature page to the exit RBL commitment letter and exercises an exit RBL lender cash or election, or a share of 97.5% of the new interests in the reorganized company, subject to dilution.

Holders of first-lien term loan claims will receive the right to participate in a rights offering and a share of a first-lien term loan distribution.

According to the disclosure statement, holders of first-lien claims that are accredited investors or qualified institutional buyers will have the opportunity to participate in an offer to purchase up to $85 million in new interests under the rights offering. The company said 50% of the rights offering securities will be reserved for rights offering participants and 50% are reserved for priority backstop parties.

Holders of second-lien notes claims will receive a share of a second-lien notes distribution, which consists of 2.5% of the new interests, subject to dilution, and make-whole instruments entitling them to 45% of any make-whole litigation proceeds.

Holders of general unsecured claims will receive a share of a claims settlement distribution.

Ongoing trade claims will be reinstated and satisfied in the ordinary course of business.

Holders of existing interests will receive no distribution.

Ultra Petroleum is a natural gas and oil exploration, development and production company based in Englewood, Colo. The company filed bankruptcy on May 14 under Chapter 11 case number 20-32631.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.