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Emerald Oil Bankruptcy Plan Filed, Confirmed

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Emerald Oil filed with the U.S. Bankruptcy Court an Amended Joint Plan of Liquidation [as Modified]. Documents filed with the Court explains, “Class 2 Claims shall be Allowed in the amount of $27,678,151….The Indenture Trustee shall have an Allowed General Unsecured Claim entitled to treatment as an Allowed Class 4 Claim in the amount of $149,919,000 for all of its Claims under the Convertible Notes and Convertible Notes Indenture, and all other Claims asserted by the Indenture Trustee shall be deemed disallowed.”

The Court subsequently confirmed the Plan, which notes, “Holders of Allowed Claims in Class 4 (General Unsecured Claims) that vote to accept the Plan (each, a Participating GUC Holder) will receive their Pro Rata share of the Cash held in the GUC Reserve, as set forth in Article VIII.F of the Plan, on account of such Claims. Holders in Class 4 that vote to reject the Plan or abstain from voting (each, a Non-Participating GUC Holder) will not receive any distribution on account of such Allowed Class 4 Claims….The Indenture Trustee shall have an Allowed General Unsecured Claim entitled to treatment as an Allowed Class 4 Claim in the amount of $149,919,000.00 for all of its Claims under the Convertible Notes and Convertible Notes Indenture, and all other Claims asserted by the Indenture Trustee shall be deemed disallowed.”

The confirmation order explains, “The court agrees with the debtors and the committee that what is necessary is that creditors in the same class have the same opportunity to receive equal treatment. It is acceptable to provide different recovery for creditors who settle than to creditors who don’t. What is important is that all members of Class 4 had the same opportunity to participate and it is that opportunity that compels me to overrule the trustee’s objection.”

This oil and gas explorer filed for Chapter 11 protection on March 22, 2016, listing $689 million in pre-petition assets.

Read more oil bankruptcy news.

The post Emerald Oil Bankruptcy Plan Filed, Confirmed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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