McMoRan Oil and Gas, Merit Energy Company and W&T Offshore filed with the U.S. Bankruptcy Court an objection to Black Elk Energy Offshore Operations’ Second Amended Plan of Liquidation.
The objection explains, “McMoRan, Merit, and W&T object to the Plan for the following reasons as set forth in more detail below: The Plan fails to satisfy administrative claims, and Black Elk cannot demonstrate feasibility for the obligations it plans to incur under the Plan. The Plan purports to abandon leases in violation of the Debtor’s statutory and regulatory decommissioning obligations.”
The objection continues, “The Plan’s structure – which involves two trusts incurring professional fees to administer separate assets for separate creditor constituencies – contains unnecessary costs that render the Plan less effective than a Chapter 7 case. The Plan fails to disclose all individuals and entities who will be involved as either trustee or committee members of the post-confirmation trusts. The Plan appears to violate the absolute priority rules.”
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