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New Gulf Resources Plan Confirmed, Supplement Filed

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The U.S. Bankruptcy Court confirmed New Gulf Resources’ First Amended Chapter 11 Plan of Reorganization and related Disclosure Statement. As previously reported, “The Plan substantially deleverages the Debtors’ balance sheet by converting approximately $365 million of debt under the Second Lien Notes into either 87.5% or 95% of the equity in Reorganized NGR, depending on how the holders of Subordinated PIK Notes vote on the Plan. The key components of the Restructuring and Plan are as follows: DIP financing in the amount of $75 million, the proceeds of which will be used to repay the Debtors’ First Lien Credit Agreement, provide operational liquidity, and fund the administration of the Chapter 11 Cases….Holders of Allowed Second Lien Notes Claims will receive their Pro Rata share of (i) 87.5% of the New Equity Interests issued as of the Effective Date and (ii) if the class of Subordinated PIK Notes does not vote to accept the Plan, an additional 7.5% of the New Equity Interests…. Holders of Allowed Subordinated PIK Notes Claims will receive their Pro Rata share of (a) if the class of Subordinated PIK Notes votes in favor of the Plan, 12.5% of the New Equity Interests outstanding as of the Effective Date and (ii) if the class of Subordinated PIK Notes does not vote to accept the Plan, 5% of the New Equity Interests.” The Debtors also filed with the Court a fourth supplement to its First Amended Chapter 11 Plan of Reorganization. The supplement contains the following documents: Exhibit A: description of restructuring transactions; Exhibit B: form of new secured notes indenture; Exhibit C: form of reorganized NGR holding management incentive Plan; Exhibit D: managers/directors and officers of the reorganized Debtors.

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