The U.S. Bankruptcy Court entered an order confirming Black Elk Energy Offshore Operations’ Third Amended Plan of Liquidation.
According to documents filed with the Court, “The purpose of the Plan is to provide for the orderly wind-down of the Debtor’s operations, the liquidation of the Debtor’s assets, the satisfaction of the Debtor’s environmental liabilities, and the orderly distribution of the Debtor’s remaining assets to creditors. The Plan contemplates the creation of two trusts, the Litigation Trust and the Liquidation Trust, into which all of the Debtor’s assets will be transferred. On the Effective Date, the Debtor will transfer the Litigation Trust Assets to the Litigation Trust, and transfer the Debtor’s remaining assets, defined in the Plan as the Liquidation Trust Assets, to the Liquidation Trust. In the event that the Debtor and Northstar reach an agreement on terms, and upon consent of various parties as set forth in Section VII(C) of the Plan, the Debtor will transfer the Northstar Assets to Northstar on or before the Effective Date, and in such event the Northstar Assets shall not become property of either the Litigation or Liquidation Trusts…The Debtor files this Third Amended Plan in order to disclose the proposed treatment of the claims of the Regulatory Agencies relating to the Debtor’s P&A Obligations except with respect to the Excluded P&A Claims….Since the filing of the Second Amended Plan, the Regulatory Agencies have filed an administrative expense claim against the Debtor for P&A Obligations in the amount of $714,244,578.” This oil and natural gas interest holder filed for Chapter 11 protection on September 10, 2015, listing $566 million in pre-petition assets.
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