Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Venoco Plan Filed, Disclosure Statement Approved

0
0

Venoco filed with the U.S. Bankruptcy Court a First Amended Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “The key element of the Plan is the conversion of the Debtors’ outstanding prepetition bond debt into equity in the Reorganized Debtors.”

The Disclosure Statement continues, “The Plan provides a framework for a comprehensive restructuring of the Debtors that includes (a) an exchange of the First Lien Notes Claims for 90% of the reorganized Debtors’ equity issued and outstanding as of the Effective Date; (b) an exchange of the Second Lien Notes Claims for warrants for 10% of the reorganized Debtors at a strike price equal to the First Lien Notes Claims; (c) an exchange of the 8.875% Senior Notes Claims for (i) a $6.5 million Cash payment, (ii) 2.6% of the reorganized Debtors’ equity issued and outstanding on the Effective Date of the Plan, which shall be effectuated by a transfer of the equity the Backstoppers of the DIP Facility are to receive as a backstop fee, and (iii) a sliding scale 1% to 5% overriding royalty interest to oil and gas produced from the LLA; and (d) an exchange of the Claims held by holders of the Senior PIK Toggle Notes for warrants for 2% of the equity of the reorganized Debtors at a strike price equal to the First Lien Notes Claims, the Second Lien Notes Claims and the 8.875% Senior Notes Claims if holders of Senior PIK Toggle Notes Claims vote as a Class to accept the Plan.”

The Court subsequently approved the Disclosure Statement and scheduled a July 13, 2016 hearing to consider the Plan, with objections due by June 24, 2016. Read more bankruptcy news.

The post Venoco Plan Filed, Disclosure Statement Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images