Triangle USA Petroleum reorganization plan effective as of March 24

By Caroline Salls

Pittsburgh, March 27 – Triangle USA Petroleum Corp.’s third amended plan of reorganization took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on March 10.

As previously reported, the plan calls for Triangle USA to obtain a senior secured reserve-based exit facility with an expected initial borrowing base of $250 million.

As part of a $180 million new money rights offering, eligible holders of general unsecured claims may subscribe for the purchase of rights offering securities.

The exit financing and rights offering proceeds are designed to provide the reorganized company with liquidity upon emergence from bankruptcy.

According to the disclosure statement, the plan provides for payment in full of administrative and priority claims and discharge of the Triangle USA debtors’ RBL credit agreement obligations. The RBL claims will be paid in full in cash or reinstated.

Also under the plan, holders of general unsecured claims, including all senior notes claims, will receive their share of new equity in the reorganized company, subject to dilution by a common stock allocation.

In lieu of new equity, general unsecured creditors may elect to receive a cash distribution.

Triangle USA interests will be cancelled and extinguished without further action from either debtor.

Triangle USA is a Denver-based oil and gas exploration and production company that filed bankruptcy on June 30, 2016. The Chapter 11 case number is 16-11566.

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