Ultra Petroleum’s ad hoc committee of unsecured creditors, ad hoc committee of Holdco noteholders and ad hoc equity committee filed with the U.S. Bankruptcy Court separate objections to Ultra Petroleum’s motion for an order (i) appointing a Chapter 11 trustee or (ii) in the alternative, appointing independent directors to the Company’s board.
The ad hoc unsecured creditors’ committee asserts, “This Court should deny the Motion because there is no “cause” for appointment of a chapter 11 trustee, and a trustee manifestly is not in the best interests of any estate. The Motion acknowledges that there is no fraud, dishonesty, incompetence, or mismanagement here.…The Motion was filed for one reason: the distressed investors in the OpCo Group do not like the proposed Plan, which proposes to pay them in full plus applicable postpetition interest, in the form of a mix of cash and take-back debt; instead the OpCo Group would like a plan which forces the Debtors to raise billions of dollars of third-party financing to pay the OpCo Group in full in cash.”
In addition, “As a result, the OpCo Group has flatly refused – despite multiple entreaties by the Debtors – to engage in any negotiations or even discussions about plan treatment, and instead is doing everything possible to avoid a confirmation hearing where the Court will decide whether or not the cash and take-back debt constitutes payment in full. But rather than simply raise their objections at a confirmation hearing, the OpCo Group, under the guise of a trustee motion, tries to litigate those plan objections now.”
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