According to the U.S. Bankruptcy Court docket, American Eagle Energy and AMZG, U.S. Bank National Association, the ad hoc noteholders’ group, USG Properties Bakken I and NextEra Energy Gas Producing filed a joint motion for approval of a compromise and settlement.
The motion states, “The Settlement Agreement contemplates, that: a. The Debtors shall pay USG $3,200,000 from the Sale Proceeds (the ‘Settlement Payment’) in full satisfaction of all pre-petition claims that USG has against the Debtors; b. The Debtors shall distribute to the Trustee $19,840,749.54 from the Sale Proceeds (the ‘Trustee Distribution’), which shall be applied in accordance with the Indenture and reduce the Senior Secured Notes Claim; c. USG shall dismiss the Adversary Proceeding with prejudice and withdraw Claim No. 302; d. On the Effective Date of the Settlement Agreement, the Debtors shall assign to USG and USG shall acquire from the Debtors $476,295.13 of the account receivable, together with all attendant rights, claims and choses in action associated with such account, and proceeds thereof held by the Debtors for amounts owed by Power Energy Partners LP (‘PEP’) and its affiliates (the ‘Power Energy Receivable’) for, among other things, hydrocarbons received from the Debtors but not paid for by PEP and any immediate or subsequent transferees.”
The motion continues, “By entering into the Settlement Agreement, the Movants can avoid the cost, expense, and uncertainty of continued litigation and begin working together towards recovering amounts owed to the Debtors and USG by PEP and its affiliates.” Read more energy bankruptcy news.
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