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Venoco RSA Approved

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The U.S. Bankruptcy Court approved Venoco’s amended and restated restructuring support agreement (RSA).

As previously reported, “Under the Plan attached to the RSA, in exchange for their claims, holders of the Debtors’ 8.875% senior unsecured notes due 2019 (the ‘Venoco 8.875% Senior Notes’) would receive warrants for 10% of the common stock in the reorganized Debtors at a strike price of approximately $325.35 million….On March 21, 2016, Candlewood Investment Group, on behalf of certain funds it manages or advises, agreed to join the RSA and support an amended Plan where holders of Venoco’s 8.875% Senior Notes would receive the following consideration in exchange for their claims: (a) a $6.5 million cash payment; (b) 2.6% of the common stock in the reorganized Debtors; and (c) a sliding scale 1% to 5% overriding royalty interest to oil and gas produced from the LLA. On April 8, 2016, the Debtors and the other parties to the RSA agreed to an amended and restated RSA….The RSA sets forth the following milestones, the failure of which may result in termination: Within 45 days of March 18, 2016, the Court must enter the final D.I.P. order; within 60 days of March 18, 2016, the Court must enter an order approving the RSA; within 90 days of March 18, 2016, the Court must enter an order approving the disclosure statement; within 150 days of March 18, 2016, the Court must enter an order confirming the plan and within 14 days following the date of the order confirming the plan, the effective date must have occurred.”

Read more on energy sector bankruptcies.

The post Venoco RSA Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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