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MD America secures confirmation of Chapter 11 plan of reorganization
By Sarah Lizee
Olympia, Wash., Dec. 15 – MD America Energy, LLC’s Chapter 11 plan of reorganization was confirmed Monday by the U.S. Bankruptcy Court for the Southern District of Texas Houston Division.
As previously reported, the plan will be funded with an equity issuance and a new $60 million four-year first-lien term loan from existing lenders.
The administrative agent for the loan is Loan Admin Co LLC.
Interest is Libor plus 775 basis points, subject to a 1.5% floor.
Amortization is 0.625%, paid on a quarterly basis.
Under the plan, holders of other priority claims and other secured claims will be paid in full in cash.
Holders of secured tax claims will be paid in full in cash, have their claims reinstated or receive the collateral securing their claims.
Holders of pre-petition term loan claims will receive their pro rata share of equity and the new first-lien loan.
Holders of trade claims will be paid in full in cash or have their claims reinstated.
Paycheck protection loan claims will be reinstated.
General unsecured claims and section 510 claims will be discharged without any distribution.
Intercompany claims will be reinstated or, at the option of the reorganized debtors, canceled. No distribution will be made on account of any intercompany claims other than in the ordinary course of business. Intercompany claims that are reinstated will be subordinate to the new first-lien term loan.
Intercompany interests will be reinstated or canceled with no distribution.
MD America interests will be canceled with no distribution.
MD America Energy is a Fort Worth-based exploration and production company that filed Chapter 11 bankruptcy on Oct. 12 under case number 20-34966.
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