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Warren Resources Plan Filed

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Warren Resources filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “The primary purpose of the Plan is to effectuate the restructuring of the Debtors’ capital structure by, reducing their overall indebtedness and improving free cash flow. Presently, the Debtors have a substantial amount of indebtedness outstanding under various secured and unsecured debt issuances in an amount of approximately $486.3 million, and other obligations to various third parties. If the Debtors are not able to consummate the Restructuring, the Debtors will likely have to formulate an alternative plan or liquidate, and the Debtors’ financial condition will likely be further materially adversely affected.”

The Disclosure Statement continues, “Pursuant to the Restructuring: – Allowed Administrative Expenses, Professional Fee Claims, Priority Tax Claims, Other Priority Claims and Other Secured Claims shall be paid in full or reinstated on the later of the Effective Date and the date of their allowance. – Class 1A claims of the First Lien Lenders will be converted into 82.5% of the equity (subject to dilution by the Management Incentive Plan) in the Reorganized Debtors and the New First Lien Facility. Additionally, at the Plan Sponsor’s option, the amount outstanding under the DIP Credit Agreement may be rolled into the New First Lien Facility. – Class 2A claims of the Second Lien Lenders, the Senior Notes Claims, and the claim of Citrus Energy (if allowed as a general unsecured claim, and if so allowed in an amount less than $8.5 million) into the remaining 17.5% of the equity (subject to dilution by the Management Incentive Plan) in the Reorganized Debtors, pro rata based on the amount of their respective claims. – Unsecured Claims in Class 2B will receive cash or an unsecured note (in each case without interest) in an amount equal to the same economic recovery provided to the holders of allowed Class 2A claims.”

The Court scheduled a July 25, 2016 hearing to consider the Disclosure Statement. Read more Warren Resources bankruptcy news.

The post Warren Resources Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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