Triangle USA Petroleum’s (TUSA) Third Amended Joint Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on March 10, 2017.
BankruptcyData’s Plan Summary notes, “The Plan provides for an equitable distribution of recoveries to the Debtors’ creditors, preserves the value of the Debtors’ business as a going concern, and preserves the jobs of employees. The Debtors believe that any alternative to confirmation of the Plan, such as liquidation or attempts by another party in interest to file a plan, could result in significant delays, litigation and costs, job loss, and/or lesser recoveries. The Plan provides for the Reorganized Debtors’ future operations, which will be funded in part by a new senior secured, reserve-based Exit Facility, with an anticipated initial borrowing base of $250 million and a new-money Rights Offering, through which Eligible Holders of TUSA General Unsecured Claims may subscribe for the purchase of up to approximately $180 Million of Rights Offering Securities. Certain members of the Ad Hoc Noteholder Group have agreed to backstop $150 million of the Rights Offering.”
BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for Reorganized Triangle USA Petroleum estimates the Net Liquidation Proceeds Available for Distribution to be between $341.9 million and $405.6 million. The recovery rate to the Class 2 – Other Secured Claims is estimated to be 100%, the Class 3 – RBL Claims is estimated to be between 99% and 100%, and the Class 5 – TUSA General Unsecured Claims is estimated to be between 1% and 17%.”
This unconventional shale oil and natural gas resources’ developer filed for Chapter 11 protection on June 29, 2016, listing $434 million in pre-petition assets.
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