Ultra Petroleum creditors seeking $200.73 million make-whole payment

By Caroline Salls

Pittsburgh, Dec. 30 – An informal committee of Ultra Petroleum Corp.’s unsecured creditors asked the U.S. Bankruptcy Court for the Southern District of Texas to rule that a $200.73 million make-whole premium is due and payable in connection with notes issued by the Ultra Resources, Inc. debtor, according to a motion filed Dec. 29.

Specifically, the senior creditors filed a complaint seeking a declaration that the filing of Chapter 11 bankruptcy cases by the Ultra Petroleum debtors triggered an obligation under a master notes purchase agreement for payment of a make-whole amount allegedly owed to holders of notes sold by Ultra Resources.

According to the complaint, the debtors are seeking to retire the notes through their Chapter 11 cases and replace them with new notes that have a lower interest rate, “thus depriving the holders of the OpCo notes of their bargained-for consideration.”

Since Ultra Resources is treated as solvent under the debtors’ Chapter 11 plan, the creditors said allowance of the make-whole amount will not dilute any creditor’s recovery, and denial of the payment would reallocate value to Ultra Petroleum equity holders from the noteholders.

Ultra Petroleum is a Houston-based independent exploration and production company. The company filed bankruptcy on April 29, 2016 under Chapter 11 case number 16-32202.

© 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.