Penn Virginia’s ad hoc committee of equity security holders and Republic Midstream and Republic Midstream Marketing filed with the U.S. Bankruptcy Court separate objections to the Company’s Disclosure Statement.
The ad hoc committee asserts, “In contrast to the approximately $3 billion of value recognized by Debtors in the February 2015 press release, Debtors now assert that the total enterprise value of the Reorganized Debtors under the proposed Plan would be in the range of $192 million to $290 million, with a mid-point of $241 million (see, the Valuation Analysis prepared by Jefferies, Exhibit H to the Disclosure Statement….The fact that certain of the Noteholders are willing to backstop an additional $50 million investment strongly suggests that value over and above Debtors’ outstanding liabilities exists.”
The objection continues. “Debtors’ total enterprise valuation of between $192 million and $290 million with a midpoint of $241 million is deficient given that it fails to explain the loss in value of approximately $2.7 billion and the assumptions underlying the valuations…Nothing in the Disclosure Statement identifies the composition of Reorganized Debtors’ board of directors that will assist Debtors in a successful emergence from chapter 11.”
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