American Natural Energy and Hillair Capital Investments filed with the U.S. Bankruptcy Court an “immaterially modified” Fourth Amended Joint Chapter 11 Plan of Reorganization. The Court subsequently confirmed the Plan.
According to the documents filed with the Court, “On the Effective Date, Hillair shall fund the Liquidating Trust with $25,000 to meet the operating costs. In the event there are any net recoveries in Causes of Action by the Liquidating Trust created under the Joint Plan, then holders of Class 4 Claims shall share Pro Rata in the net proceeds….Specifically, Hillair has agreed to (a) pay the cash necessary to implement and consummate the Joint Plan, including the payment of all Allowed Administrative Claims, Class 1 Claims, Class 3 Lien Claims, if any exist, and the $25,000 necessary to fund the Liquidating Trust; (b) convert its DIP Loan balance and its GAP Claim balance together with any additional cash necessary to consummate the Joint Plan and any additional advances designed to enhance the Enterprise Value post-Effective Date, into Preferred Stock with a PIK interest rate of 12%; and (c) convert its compromised and discounted Class 2 Claim of $2,920,000 into 88.65% of the Common Stock issued in the Reorganized Debtor.”
Court-filed documents continue, “It is estimated that the cash necessary to satisfy the obligations in subpart (a) above will approximate $1,700,000 but Hillair commits to satisfy those obligations even if they exceed $1,700,000.” This oil and natural gas producer filed for Chapter 11 protection on October 2, 2015, listing $19 million in pre-petition assets.
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