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

ATP Oil & Gas Plan Filed

ATP Oil & Gas filed with the U.S. Bankruptcy Court a Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, “The Debtor believes the terms of the Plan are fair to all Holders of Claims and Equity Interests taking into account the financial situation of the Debtor and the legal priority of such Claims and Equity Interests. The Debtor does not believe there is a viable alternative for emerging from Chapter 11 other than through confirmation of the Plan. If the Plan is not confirmed, it will be required to convert this Chapter 11 Case to Chapter 7. In this event, Holders of all Claims described in this Article (other than the DIP Superpriority Deficiency Claim) will likely receive no recovery on account of their Claims. The Plan is intended to maximize distributions payable to Holders of Allowed Unclassified Claims and potentially Holders of other Allowed Claims. The Plan provides for the liquidation of all of the Debtor’s property and for a distribution of the net proceeds consistent with Section 726 of the Bankruptcy Code (the general distribution section for liquidation cases). Upon the Effective Date, all of the Debtor’s property that is not sold or otherwise disposed of prior thereto, shall vest in the Liquidating Trust to be liquidated by the Liquidating Trustee under the supervision of an Oversight Committee (comprised of two members appointed by the DIP Lenders and one member appointed by the Creditors Committee), in accordance with the terms of the Plan, for the benefit of all Holders of Allowed Claims. The Plan provides for the dissolution of the Debtor following the conveyance of all of its remaining assets into After accounting for $250,000 to fund the administration of the Liquidating Trust….The Liquidating Trustee will be responsible for disputing, negotiating, litigating and settling claim objections and making all initial and final distributions to Holders of Allowed Claims. The Liquidating Trustee also will be responsible for prosecuting all Causes of Action of the Debtor’s estate that are transferred to the Liquidating Trust, including Chapter 5 Causes of Action, D&O Claims and the BP Claims.”

Read more Bankruptcy News