Ultrapetrol Bahamas filed with the U.S. Bankruptcy Court a motion authorizing the assumption of a restructuring support agreement related to the sale of its River Business (the River RSA) and authorizing payment of the termination fee to the extent it becomes payable.
The motion explains, “Under the Restructuring Support Agreement and the Debtors’ plan of reorganization, Sparrow will purchase the Debtors’ River Business for $73 million in cash, which cash will be used, along with certain other consideration, on a parripassu basis, to retire the debt held by the Supporting Creditors….Under the Parent-Included Plan, pursuant to the Investment Agreement, on the effective date of the Parent-Included Plan (i) Sparrow River Investments (‘New Holdco 1’), an affiliate of Sparrow Capital Investments and Sparrow C1 Sub (together, ‘Sparrow’), will acquire the River Business, including 100% of the new River Business holding company Common Stock to be issued pursuant to the Plan, in exchange for cash consideration in the amount of $73.0 million, which will be used to fund distributions to creditors and (ii) Sparrow Offshore Capital (‘New Holdco 2′), an affiliate of Sparrow, will acquire the Offshore Business, including 100% of the equity of the UP Offshore (Bahamas), a non-Debtor, in exchange for cash consideration in the amount of $2.5 million.”
Ultrapetrol Bahamas also filed a motion for approval of a separate RSA (related to its Offshore Supply Business) with UABL (the Offshore RSA). This motion explains, “The Offshore RSA is a critical component of the Debtors’ restructuring Plan, building on the foundation laid by the River RSA. The Offshore RSA, supported by 100% of the Offshore Lenders, effectuates and consummates the River RSA simultaneously with the sale of the Offshore Supply Business and consummation of the out-of-court restructuring of the Offshore Loans and the agreement to, among other things, release their guarantee claims against UBL and Cornamusa.”
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