BankruptcyData’s detailed analysis and summary of Ultra Petroleum’s Revised Second Amended Joint Chapter 11 Plan of Reorganization, dated March 10, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on March 14, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The formulation of the Plan Support Agreement and the Plan is a significant achievement for the Debtors in the face of historic commodity price declines and a depressed operating environment. The Debtors strongly believe that the Plan is in the best interests of the Estates, represents the best available alternative, and significantly deleverages the Debtors’ consolidated balance sheet at a critical time after the commodity cycle downturn has negatively affected many companies within the oil and natural gas industry. Given the Debtors’ core strengths, including their experienced management team and the strategic location of their assets, the Debtors are confident that they can implement the Plan’s balance sheet restructuring to ensure the long-term viability of their businesses.”
BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates the Total Enterprise Value of the Reorganized Debtors to be approximately $4.8 billion to $7.0 billion, with a midpoint of $5.9 billion as of an assumed Effective Date of March 31, 2017. Based on assumed pro forma net debt of $2.1 billion as of the assumed Effective Date, the Total Enterprise Value implies an Equity Value range of $2.7 billion to $4.9 billion, with a midpoint of $3.8 billion.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Ultra Petroleum’s April 29, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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