Energy & Exploration Partners (ENXP) filed with the U.S. Bankruptcy Court a motion to compromise a controversy with B. Hunt Pettit, the Company’s founder, chairman of the board, president and C.E.O. If approved, the settlement authorizes and approves entry into the voluntary settlement and release agreement between ENXP and Pettit.
The motion explains, “Notably, pursuant to the Plan, existing equity interests in ENXP will be cancelled as of the effective date of the Plan and the equity in the reorganized Debtors will be principally distributed to the Debtors’ lenders. Moreover, it is contemplated that upon emergence, the Debtors will have a reconstituted Board of Directors….As part of the Debtors’ restructuring, Mr. Pettit, the ENXP Board of Directors, and the Ad Hoc Group of Lenders have discussed and determined that Mr. Pettit will step down from his roles with the Debtors.”
The motion continues, “Accordingly, the parties engaged in extensive, good faith, arm’s length negotiations to reach consensual terms with Mr. Pettit to conclude his employment with the Debtors….Mr. Pettit shall receive a settlement payment of $1,000,000 payable in four monthly installments of $250,000, the first of which shall be paid on May 2, 2016, and the remaining three installments to be paid on the first day of each of the succeeding three calendar months…Concurrent with the payment of the first installment of the Settlement Payment, the Debtors shall pay Mr. Pettit an additional lump sum amount of $25,000 to cover future cost of health insurance coverage.”
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