The U.S. Bankruptcy Court approved Energy XXI’s Second Supplement to the Third Amended Disclosure Statement. The Supplement sets forth modifications to the Second Amended Joint Chapter 11 Plan.
According to documents filed with the Court, “The key modifications to the Plan include: An increase of the General Unsecured Claim Distribution from $850,000 to $1,470,000, resulting in an increase in the estimated percentage recoveries for holders of Class 11 General Unsecured Claims from approximately 4.3% to approximately 7.5%. The elimination of the EGC Intercompany Note Trust. All disputes that were formerly placed in the EGC Intercompany Note Trust, or the ‘EGC Intercompany Note Dispute,’ are now settled pursuant to the Plan….Each holder of an EGC Unsecured Notes Claim (other than EGC) shall receive under the Plan such holder’s pro ratashare of (a) 12% of the New Equity subject to dilution by the Management Incentive Plan and the New Warrant Package and (b) the EGC New Warrant Package. EGC shall receive no distribution on account of the EGC Repurchased Bonds.”
In addition, “Each holder of an EPL Unsecured Notes Claim (other than EGC) shall receive such holder’s pro rata share of (a) 4% of the New Equity under the Plan, subject to dilution by the Management Incentive Plan and the New Warrant Package and (b) the EPL New Warrant Package. EGC shall receive no distribution on account of the EPL Repurchased Bonds. The New Warrant Agreement that governs the New Warrant Package shall (i) provide for anti-dilution adjustments (in addition to those included in the definitions of EGC New Warrant Package and EPL New Warrant Package) solely for spin-offs and other asset distributions and extraordinary cash distributions, and (ii) provide that, in connection with a merger or similar sale of New Parent, each warrant will become exercisable for such cash, stock, securities or other assets or property as would have been payable in such sale transaction with respect to the New Parent securities issuable upon exercise of such warrant if such warrant had been exercised immediately prior to the occurrence of such transaction. A Cash distribution to holders of EXXI 3.0% Senior Convertible Notes Claims of $2,000,000, instead of equity in the Reorganized Debtors, and a corresponding increase in the estimated percentage recoveries for holders of Class 9 EXXI 3.0% Senior Convertible Notes Claims of approximately 0.5.”
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