Blue Earth filed with the U.S. Bankruptcy Court a Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan generally provides for a reorganization of the Debtors’ business through a debt-for equity swap whereby JIG, the Debtors’ Prepetition Secured Lender and DIP Lender, shall receive 100% of the Reorganized Blue Earth Equity Interests. Therefore, upon the Effective Date, JIG will become the 100% owner of Reorganized Blue Earth. Interests in Reorganized BE Tech will be Reinstated. More specifically, Reorganized Blue Earth will assume $8 million of debt into the Exit Contingent Note, from a combination of the full amount of the Plan Funding Amount, a substantial portion of the Allowed DIP Claim and a portion of the Allowed Prepetition Note Secured Claim, and convert $1 million from a combination of a portion of the Allowed DIP Claim and a portion of the Allowed Prepetition Note Secured Claim into Reorganized Blue Earth Equity Interests. Reorganized Blue Earth will retain the operations of Sumter Heat and Power as well as collect various other receivables.”
The Disclosure Statement continues, “The Exit Contingent Note will have a term of 5 years, deferred interest accruing at 1%, and after 5 years any remaining amount of the Exit Contingent Note will be satisfied in full from the assets of Reorganized Blue Earth. Shortly after the Effective Date, Brooks Heat & Power will be transferred to a separate newly formed entity owned by JIG, and upon such transfer, the Exit Contingent Note will be reduced by $2,400,000. The newly formed entity will provide management services to the Reorganized Debtors, and the Reorganized Debtors will have no direct employees. It is anticipated that EnSite Power will be able to raise capital from third parties after the Effective Date.”
The Court subsequently approved the Disclosure Statement and scheduled a July 19, 2016 hearing to consider the Plan. Read more Blue Earth bankruptcy news.
The post Blue Earth Plan Filed, Disclosure Statement Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.