Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Energy

MACH Gen Chapter 11 Petition, Plan Filed

Privately-held MACH Gen and four affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case 14-10461. The Company, which generates electricity, is represented by Russell C. Silberglied of Richards Layton & Finger. The Company concurrently filed a Joint Prepackaged Chapter 11 Plan and related Disclosure Statement (dated January 21, 2014), under which the following will occur: “Allowed First Lien Revolver Claims, in the aggregate principal amount of approximately $119,395,609.52 (including issued letters of credit and subject to adjustment for any additional borrowings or repayments occurring after January 15, 2014 and up to the Petition Date) out of a total loan commitment of $200 million, will be exchanged for obligations under, or paid with the proceeds of, the New First Lien Revolver…, in an equal aggregate principal amount; the Allowed First Lien Term Loan Claims, in the aggregate principal amount of approximately $483,209,285.14, will be exchanged for obligations under, or paid with the proceeds of, the New First Lien Term Loan…, in an equal aggregate principal amount; the Allowed Second Lien Claims, in the aggregate principal amount of approximately $1 billion, will be exchanged on a Pro Rata basis for 93.5% of the New Common Units…; the Allowed Interests in MACH Gen, LLC will be exchanged on a Pro Rata basis for 6.5% of the New Common Units; and all other Claims, including all Allowed General Unsecured Claims, will be paid in full or otherwise rendered Unimpaired.” According to documents filed with the Court, “Mach Gen has faced significant interest expenses due to the leveraged nature of its balance sheet, which, in combination with declining revenues, has impacted Mach Gen’s ability to service its long-term debt.” The Company’s Chapter 11 petition indicates total assets in the range of $500 million to $1 billion.

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