MTE Holdings details creditor voting results for Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Aug. 24 – MTE Holdings LLC detailed the voting results for its Chapter 11 plan in a tabulation summary filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, all 16 holders of $407.41 million of MTE term loan claims against MTE, MTE Partners, and Olam Energy, all 11 holders of $26.07 million of senior secured trade claims against MDC, all seven holders of $15.79 million of senior secured trade claims against MDC Reeves, and the one holder of $56.97 million of MDC RBL facility claims against MDC, MDC Reeves and Ward I, all voted to accept the plan.

Meanwhile, 28 holders, or 77.78% in number, of $11.69 million, or 87.28% in amount, of general unsecured claims against MDC voted to accept the plan, while eight holders, or 22.22% in number, of $1.7 million, or 12.72% in amount, voted to reject the plan.

Also, 32 holders, or 94.12% in number, of $59.36 million, or 100% in amount, of general unsecured claims against MDC Texas Operator voted to accept the plan, while two holders, or 5.88% in number, of $2.00, or 0% in amount, voted to reject the plan.

And, 81 holders, or 83.51% in number, of $52.53 million, or 96.97% in amount, of general unsecured claims against MDC Reeves voted to accept the plan, while 16 holders, or 16.49% in number, of $16.42 million, or 3.03% in amount, voted to reject the plan.

The hearing on confirmation of the Chapter 11 plan is scheduled for Sept. 2.

According to the disclosure statement, the reorganized debtors will fund distributions under the plan with proceeds from a sale of the debtors’ assets. Distributions to be made by litigation trusts will be paid from recoveries on the respective litigation trust assets. Wind-down expenses will be paid by a plan administrator from a wind-down budget.

Under the plan, holders of other secured claims will receive payment in full in cash, the collateral securing their claims, or other treatment that leaves their claims unimpaired.

Administrative claims and priority tax claims will be paid in full.

Holders of other priority claims will receive payment in full in cash or other treatment that leaves their claims unimpaired.

Holders of MTE term loan claims will receive their pro rata share of all net MTE cash, and the applicable units issued by the MTE litigation trust.

Holders of senior secured trade claims will receive their pro rata share of the senior secured trade recovery amount, which is up to $27 million plus the net profits interest, which will be in an amount of up to $10 million.

Holders of MDC revolving credit facility claims will receive their pro rata share of the MDC RBL facility claim payment, which is $17.5 million in cash; 100% of the excess MDC distributable cash; and any and all proceeds from the liquidation of any MDC RBL remaining collateral.

Holders of MTE general unsecured claims will not receive any distribution.

Holders of class 6D, 6F and 6G MDC general unsecured claims will receive their pro rata share of the applicable units issued by the MDC litigation trust.

Holders of class 6R general unsecured claims will receive their pro rata share of the applicable units issued by the MTE litigation trust and/or the MDC litigation trust, on account of any MDC Texas litigation trust assets determined to constitute MTE litigation trust assets and/or MDC litigation trust assets, respectively, by the MDC revolving lenders, the MTE term lenders and the debtors prior to confirmation.

Interests will be transferred to a litigation trustee with no distribution to holders.

MTE is a Midland, Tex.-based holding company. The company filed bankruptcy on Oct. 22, 2019 under Chapter 11 case number 19-12269.

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