Ultra Petroleum filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “Since executing the Plan Support Agreement, the Debtors have documented the terms of the restructuring contemplated thereby – including the Plan and this Disclosure Statement. The key terms are summarized as follows….Existing HoldCo Common Stock. Assuming a Settlement Plan Value of $6 billion, holders of Existing HoldCo Common Stock shall receive their Pro Rata share of 41 percent of the New Common Stock on the Effective Date, subject to adjustment as provided in the Plan if the Settlement Plan Value is $6.25 billion or $5.5 billion, and subject to dilution on account of the Management Incentive Plan, and rights to participate in the Rights Offering for 5.4 percent of the New Common Stock, exclusive of New Common Stock issued on account of the Commitment Premium and subject to dilution on account of the Management Incentive Plan.”
The Disclosure Statement continues, “HoldCo Note Claims. Assuming a Settlement Plan Value of $6 billion, holders of Allowed HoldCo Note Claims shall each receive their Pro Rata share of 36.2 percent of the New Common Stock on the Effective Date, subject to adjustment as provided in the Plan if the Settlement Plan Value is $6.25 billion or $5.5 billion, and subject to dilution on account of the Management Incentive Plan, and the right to participate in the Rights Offering for 16.1 percent of the New Common Stock, exclusive of New Common Stock issued on account of the Commitment Premium and subject to dilution on account of the Management Incentive Plan.”
In addition, “Holders of Allowed General Unsecured Claims shall, depending on the entity against which such General Unsecured Claim is Allowed and the nature of such General Unsecured Claim, be paid in full in Cash on, or in some circumstances within six (6) months of, the Effective Date, or in some circumstances shall receive such other treatment rendering certain claims Unimpaired.” The Court scheduled a January 19, 2017 hearing to consider the Disclosure Statement.
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