American Standard Energy filed with the U.S. Bankruptcy Court a Second Amended Chapter 11 Plan and related Disclosure Statement.
According to the Disclosure Statement, “The Plan of Reorganization is premised upon the Debtors paying their Priority Non-Tax Claims and Other Secured Claims in full, paying the Prepetition Lender Secured Claims through a combination of New Common Stock and a promissory note issued by the Reorganized Debtors in the amount of $5,000,000, paying Unsecured Claims their pro rata share of $250,000, granting holders of Interests the right to purchase equity in the Reorganized Debtors (in the event the $100,000 floor is met) and cancelling or reinstating any Intercompany Claims….Confirmation of the Plan will discharge the Debtors from all pre-petition debts and contractual obligations of the Debtors, except as expressly provided in the Plan, the Order of Confirmation or other Bankruptcy Court Order.”
The Disclosure Statement continues, “As is evident from Exhibits C, D, E, and F, the Schedules filed in this case, and certain Proofs of Claims filed in this case, the aggregate secured claims against the Debtors exceed $50.2 million and the aggregate liquidation value of the Debtors’ assets is approximately between $10 million and $13 million, less an additional approximately $1 million in Chapter 7 Trustee fees and counsel fees. Accordingly, there would be no monies available for unsecured creditors in the event the Debtors’ assets were liquidated through or outside the bankruptcy process. Therefore, Creditors would receive substantially less in Chapter 7 than they will through the Debtors’ Plan of Reorganization.”
A confirmation hearing will be held on June 27, 2016, with objections due by June 20, 2016. Read more energy bankruptcy news.
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