The U.S. Bankruptcy Court confirmed Midstates Petroleum Company’s First Amended Joint Chapter 11 Plan of Reorganization.
As previously reported, under the Plan holders of Class 4 – first lien claims shall receive its pro rata share of (a) approximately $82 million in cash or otherwise the amount necessary to reduce the outstanding obligations to the first lien lenders (including outstanding obligations with respect to existing letters of credit) to $170 million and (b)(i) if such holder is a first lien accepting lender, the new credit facility revolving loans, or (ii) if such holder is a first lien rejecting lender, the new credit facility term loans, in all events consistent with the terms of the new credit facility term sheet.
Holders of Class 7 – unsecured notes/general unsecured claims shall receive (i) 1.25% of the new common stock (which shall be subject to dilution under the management incentive plan, any other compensation arrangements under the management compensation term sheet, and new common stock issuable upon exercise of the new warrants) and (ii) the unsecured creditor warrants; provided that in the event of a settlement termination event the unencumbered distribution will be shared pro rata among all holders of unsecured notes claims and general unsecured claims, including the deficiency claims. This oil and gas producer filed for Chapter 11 protection on April 30, 2016, listing $679 million in pre-petition assets.
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