Blue Earth and Jackson Investment Group (JIG) filed with the U.S. Bankruptcy Court Joint Chapter 11 Plan of Reorganization.
According to the Plan, “On the Effective Date, Blue Earth shall be reorganized and remain a Nevada corporation, existing equity interests in Debtor Blue Earth shall be cancelled, and 100% of the new equity interests in Reorganized Blue Earth shall be issued to JIG….In particular, it is the intent of the Plan Proponents to engage in the following Restructuring Transactions. Reorganized Blue Earth will assume $8 million of debt into the Exit Contingent Note, from a combination of the full amount of 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.”
Court-filed documents continue, “Reorganized Blue Earth will retain the operations of Sumter Heat and Power, LLC, as well as collect various other receivables. 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 the Reorganized Debtor. Shortly after the Effective Date, Brooks Heat & Power, Ltd. will be transferred to a separate newly formed entity owned by JIG, and upon such transfer, the Exit Contingent Note will be reduced by $2.4 million. The newly formed entity will provide management services to the Reorganized Debtors, and the Reorganized Debtors will have no direct employees.”
The Court subsequently confirmed the Plan. This renewable energy provider filed for Chapter 11 protection on March 21, 2016, listing $103 million in pre-petition assets. Read more bankruptcy news.
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