The U.S. Bankruptcy Court approved GreenHunter Resources’ motion to compromise a controversy with Magnum Hunter Resources, Triad Hunter, Viking International Resources and Alpha Hunter Drilling; enter into an amended agreement and assign the amended agreement to the purchaser.
As previously reported, “The Debtors and the Magnum Parties entered into negotiations regarding a potential assumption of the Agreement in the Magnum Parties Bankruptcy Case. Following these negotiations, the Magnum Parties agreed to assume the Agreement as amended, with an agreed to cure amount of $355,500, which was reflected in Exhibit B to the third amended Magnum Parties Plan Supplement. The Debtors have filed seven different proofs of claim against the Magnum Parties in the aggregate amount of $886,237.02.”
Court-filed documents continue, “The Debtors request authorization to enter into the proposed contract restructuring agreement with Triad and Virco. Under the terms of the contract restructuring: a. The Magnum Parties will pay to the Debtors the aggregate sum of $355,500 in full and final satisfaction of all of the Debtors’ prepetition claims in the Magnum Parties Bankruptcy Case. The Agreement as amended allows a restructuring of the existing relationship between the parties which will (a) resolve the amounts owed by the Magnum Parties to the Debtors, (b) provide for a significant payment of $355,500 to the Debtors on its receivable from the Magnum Parties (which is a pre-petition claim in the Magnum Parties Bankruptcy Case that would otherwise be entitled to its pro rata share of a $23 million cash pool or equity in reorganized Magnum Parties) and (c) provide for an amendment to the existing service agreement between the parties which will allow the Debtors to retain its valuable customer relationship by providing water hauling and disposal services to Triad and Virco on a go forward basis.”
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