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

Dune Energy Plan Filed

Dune Energy filed with the U.S. Bankruptcy Court a Chapter 11 Plan and related Disclosure Statement. According to the Disclosure Statement, "Except to the extent that the holder of a particular Administrative Claim has agreed to a different treatment of its Claim, the Plan provides that Administrative Claims shall be paid in full on the Effective Date;….With respect to holders of Priority Unsecured Non-Tax Claims, the Plan provides that, that absent agreement, holders of Allowed Priority Unsecured Non-Tax Claims shall receive Cash in the amount of their Priority Unsecured Non-Tax Claims....With respect to a Secured Claim (including a Claim that that would otherwise be a Priority Unsecured Tax Claim, but for the secured status of the claim), the holder of that Claim will receive on account of such Claim either…a Distribution equal to 100% of its claim in cash on the Effective Date....Confirmation of the Plan is not likely to be followed by the liquidation or the need for further financial reorganization of the Debtors or any successor to the Debtors under the Plan, unless such liquidation or reorganization is proposed in the Plan." The Disclosure Statement further notes, "Without the First Lien Lenders' agreement to allow the use of their Cash Collateral to fund the chapter 11 Bankruptcy Cases and the Plan, there is likely no source of funding to confirm the Plan, and the Debtors' Bankruptcy Cases might be converted to chapter 7 if no other funding sources are available. In such case, the Debtors believe it is highly unlikely that holders of General Unsecured Claims would receive any significant Distribution on their Claims because the First Lien Lenders and the Second Lien Noteholders hold claims totaling approximately $112.3 million and such Claimholders were granted security interests in and liens against substantially all of the Debtors' assets prepetition." The Court scheduled a September 17, 2015 to consider both the Disclosure Statement and Plan.

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