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 / Bonds

LINN Energy Supplement Filed, Plans Effective

LINN Energy filed with the U.S. Bankruptcy Court a Supplement for its Amended Joint Chapter 11 Plan for LINN Acquisition & Berry Petroleum. The Supplement contains, among other things, Exhibit 1: Certificate of Incorporation for Berry Petroleum, Exhibit 2: Bylaws of Berry Petroleum and Exhibit 3: Stockholders Agreement of Berry Petroleum. LINN Energy's Amended Joint Chapter 11 Plan for LINN Acquisition & Berry Petroleum subsequently became effective, and Berry Petroleum emerged from Chapter 11 protection. The Court confirmed that Plan on January 27, 2017. On the same date, the Court also confirmed the Amended Joint Chapter 11 Plan of Reorganization for LINN Energy and its Debtor affiliates (other than Linn Acquisition and Berry Petroleum). According to a stipulation and agreed order regarding effective dates--filed by LINN Energy, Wells Fargo, the ad hoc group of Berry Petroleum's unsecured noteholders, the ad hoc Group of LINN Energy's second lien noteholders and the ad hoc group of LINN Energy's unsecured noteholders, the Amended Joint Chapter 11 Plan of Reorganization for LINN Energy and its Debtor affiliates (other than Linn Acquisition and Berry Petroleum) is also effective. That stipulation notes, "Subject to the satisfaction or waiver of the conditions precedent to the respective Effective Dates of each of the Plans other than, to the extent applicable, resolution of the Disputes, the Effective Dates of each of the Plans shall occur on February 28, 2017. Within seven (7) days of the Effective Date, the Parties shall agree on a scheduling order, which shall set forth deadlines for limited discovery and briefing with respect to the Disputes; it being understood that the Parties agree that time is of the essence and that the hearing on the merits of the Disputes should be scheduled for the hearing on April 27, 2017." According to a corporate release, "Financially restructured, Berry emerges as a stable, well capitalized stand-alone company. Berry was previously a wholly-owned subsidiary of LINN Energy LLC." Berry Petroleum's C.E.O., Trem Smith, comments, "Berry is stronger than ever. We remain committed to our current asset base and focused on growth opportunities in surrounding areas, particularly in California." Discussing the LINN Energy and its Debtor affiliates' Plan, BankruptcyData notes, "The Financial Projections assume that Reorganized LINN will obtain exit financing with initial commitments equal to $1,700 million, including $1,400 million of RBL commitments and $300 million of term loan commitments. Borrowings under the RBL facility are estimated at $622 million on the Effective Date, pro forma for the funding of the $530 million rights offering investment and cash distributions under the Plan. Management expects to have approximately $771 million of available liquidity under its RBL on the Effective Date." This independent oil and natural gas company filed for Chapter 11 protection in May 2016, listing $10 billion in pre-petition assets.

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