Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Forbes Energy Services Bankruptcy Plan Summarized

0
0

BankruptcyData’s detailed analysis and summary of Forbes Energy Services’ Prepackaged Joint Plan of Reorganization, dated January 22, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on March 29, 2017; however, an effective date has not yet been issued.

BankruptcyData notes, “Upon emergence from chapter 11, the Reorganized Debtors expect to have outstanding debt primarily consisting of obligations under a contemplated $50 million term loan Exit Facility. The Exit Facility will have a four-year maturity date and will accrue interest at the rate of 5.00% per annum, which will be payable in cash, plus an additional 7.00% per annum, which will be payable in cash or in-kind at the election of the Reorganized Parent, provided, that the latter rate of interest will increase by 2% per annum every 12 months.  Accordingly, the Reorganized Debtors will have a significantly deleveraged and improved balance sheet and a more appropriate capital structure.”

The Plan Summary continues, “The Liquidation Analysis for Reorganized Forbes Energy estimates Gross Liquidation Proceeds Available for Distribution to be between $92.7 million and $119.1 million, representing a 63% – 71% discount to book value. The recovery rate to the Class 4 ‐ Senior Unsecured Note Claims and Class 5 – General Unsecured Claims is estimated to be between 16% and 26%.”

BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Forbes Energy Services’ January 22, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.

Read more Forbes Energy bankruptcy news.

The post Forbes Energy Services Bankruptcy Plan Summarized appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images