Saratoga Resources’ Joint Chapter 11 Plan of Reorganization, as immaterially modified, became effective; and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on October 28, 2016.
The Plan provides for the distribution of Plan Related Funds to Allowed Claimants.
- First Lien Claims will receive a credit of $10.7 million on the outstanding obligations under the First Lien Indenture. The First Lien Noteholders will retain their Liens on the cash and receivables of the Debtors securing the obligations outstanding under the First Lien, for a 100% rate of recovery.
- Second Lien Claims are entitled to vote to accept or reject the Plan solely as holders of Class 4 General Unsecured Claims.
- General Unsecured Claims will be paid its pro rata share of any distributions from the Litigation Trust, for an unknown rate of recovery.
- Equity Interests in Saratoga will be retained, provided that Classes 1, 3 and 4 vote to accept the Plan, by the holders thereof and will automatically constitute Equity Interests in Reorganized Saratoga. In the event that Classes 1, 3 and/or 4 do not vote to accept the Plan, then Existing Equity Interests will be cancelled and extinguished and New Equity Interests in Reorganized Saratoga will be issued to the Litigation Trust.
The crude oil and natural gas company filed for Chapter 11 protection on June 18, 2015, listing $112 million in pre-petition assets. This was Saratoga Resources second bankruptcy.
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