Ultra Petroleum objects to $400 million in funded debt-related claims

By Caroline Salls

Pittsburgh, March 6 – Ultra Petroleum Corp. objected to various claims filed by holders of its operating company note and credit facility claims, according to a March 3 filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, the company asked the court to disallow payment of make-whole claims and post-bankruptcy interest claims in amounts that exceed the Federal Funds rate, as well as payment of any portion of an operating company funded debt claim for amounts that are not due under the debt agreements or allowed under the Bankruptcy Code.

Ultra Resources said it is the primary obligor on $2,459,000,000 in principal amount of unsecured funded debt, all of which the company said it proposes to satisfy in full and in cash under its plan of reorganization.

“But the owners of this debt seek almost $400 million more – approximately $201 million as a ‘make-whole’ premium and approximately $186 million in post-petition interest at contractually specified rates,” the filing said.

“These additional two types of claims are prohibited by law and should be disallowed.”

In addition, Ultra reserved the right to object to professional fee claims that are not applicable under its contracts.

A hearing is scheduled for April 20.

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

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