Quicksilver Resources’ First Amended Joint Chapter 11 Plan of Liquidation became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on August 16, 2016.
As previously reported, “The Plan provides for a liquidation of the Debtors’ remaining assets and a distribution of the Cash proceeds to creditors in accordance with the priority scheme of the Bankruptcy Code and the terms of the Plan….In addition, because the Plan proposes a liquidation of all of the Debtors’ assets, for purposes of this test the Debtors have analyzed the ability of the Liquidation Trust to meet its obligations under the Plan. Based on the Debtors’ analysis, the Liquidation Trust will have sufficient assets to accomplish its tasks under the Plan.”
Court-filed documents continue, “To the extent not used in the transfer of Liquidation Trust Assets and not completed prior to the Effective Date, the Debtors (and their respective boards of directors) will dissolve as of the Effective Date, and are authorized to dissolve or terminate the existence of wholly owned non-Debtor subsidiaries following the Effective Date as well as any remaining health, welfare or benefit plans. For the avoidance of doubt, once all assets of a Debtor have been transferred to the Liquidation Trust, the applicable Debtor or the Liquidation Trustee, as applicable, will take all necessary steps to dissolve such Debtor.”
This onshore oil and natural gas provider filed for Chapter 11 protection on March 17, 2015, listing $1.2 billion in pre-petition assets. Read more Quicksilver bankruptcy news.
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