Ryckman Creek chooses new plan sponsor; confirmation hearing adjourned

By Caroline Salls

Pittsburgh, Dec. 12 – Ryckman Creek Resources, LLC has again entered into a new plan sponsorship agreement, this time with Belle Butte LLC, according to an amended Chapter 11 plan filed with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Ryckman obtained court approval of its disclosure statement supplement and of bid protections to be paid in connection with a proposed Chapter 11 plan sponsorship agreement with Sandton Uinta Storage, LLC earlier this month.

On Nov. 13, Ryckman filed a fourth amended plan of reorganization based on a transaction under which 31 Midstream, LLC would purchase 80% of the equity in reorganized Ryckman.

However, following court approval of the disclosure statement related to the 31 Midstream-sponsored plan, Ryckman said it received an unsolicited alternative proposal from Sandton for the purchase of 80% of the equity in the reorganized company.

The newest agreement now calls for Belle Butte to purchase 80% of class B membership interests for $18.2 million in cash, including $7.2 million in up-front cash to be paid to a liquidating trust on the plan effective date, as well as a $10 million plan sponsor note.

As a result of the change, the plan confirmation hearing scheduled for Dec. 15 has been adjourned to a date to be set by the court.

Ryckman Creek is a Houston-based gas storage services company. It operates as a subsidiary of Peregrine Midstream Partners, LLC. Ryckman filed for reorganization under Chapter 11 on Feb. 2, 2016. The case number is 16-10292.

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