Venoco filed with the U.S. Bankruptcy Court a motion authorizing the Debtors to assume a restructuring support agreement (RSA). The Company notes, “The RSA provides a robust framework for a comprehensive restructuring of the Debtors that includes as a key feature a debt-to-equity conversion of the Debtors’ prepetition funded debt for substantially all of the equity of Reorganized Venoco.”
The motion continues, “The RSA commits each of the Restructuring Support Parties to support, and take all reasonable actions necessary (A) vote all of its claims against the Debtors to accept the Plan in accordance with the applicable procedures set forth in the Disclosure Statement and the Solicitation Materials, upon receipt of the Disclosure Statement and Solicitation Materials approved by the Bankruptcy Court; (B) timely return a duly-executed ballot in connection therewith; and (C) not ‘opt out’ of any releases under the Plan. In addition, each of the Restructuring Support Parties agrees to support the Plan and not object to the Plan or corresponding disclosure statement. The RSA sets forth the following milestones, the failure of which may result in the termination of the RSA: (a) no later than 7 days after the Petition Date, the Bankruptcy Court shall have entered the Interim DIP Order, in the form attached as Exhibit C to the RSA, with only such modifications as have been otherwise consented to in writing by the Debtors and the Restructuring Support Parties.”
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