Bankruptcy News

Rex Energy Corporation Chapter 11 Petition Filed

Rex Energy and three affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Western District of Pennsylvania, lead case number 18-22033. The Company, an independent natural gas, NGL and condensate company with operations currently focused in the Appalachian Basin, is represented by James D. Newell of Buchanan Ingersoll & Rooney. In a press release announcing the filing and an accompanying restructuring support agreement, Rex Energy advised that it has “decided to begin an orderly sale process for its remaining assets in order to maximize their long-term value and prospects. To facilitate the sale and address its debt obligations, the Company initiated voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code with support outlined in a Restructuring Support Agreement signed by 100% of its first lien lenders and approximately 72% of its second lien noteholders.” The press release further notes that the “Company has secured a financing commitment of $100 million from its existing first lien lenders, which, combined with its normal operating cash flow, will allow Rex Energy to maintain normal operations and meet ongoing financial commitments.” Rex Energy’s petition notes between 10,001 and 25,000 creditors; assets of $851,000,957 and liabilities of $984,529,090.

Cambridge Analytica Chapter 7 Petition Filed

Privately-held Cambridge Analytica and affiliated Debtors filed for Chapter 7 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 18-11500. The Company, which provides data analytics and behavioral communications, is represented by Adam C. Harris of Schulte Roth & Zabel. In a May 2, 2018 statement released in conjunction with the announcement of UK insolvency proceedings and specifically anticipating the parallel US proceedings announced today, the Company stated: “Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the Company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas…. Despite Cambridge Analytica’s unwavering confidence that its employees have acted ethically and lawfully … the siege of media coverage has driven away virtually all of the Company’s customers and suppliers. As a result, it has been determined that it is no longer viable to continue operating the business…” Cambridge Analytica’s petition, signed by Rebekah and Jennifer Mercer, notes between 1 and 49 creditors; estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million.

Lockwood International Seal Approved

The U.S. Bankruptcy Court issued an order approving Lockwood International’s motion to seal Exhibit B to Lockwood’s aircraft sale motion. As previously reported, "The APA includes sensitive confidential information, including the name of the Purchaser. The Purchaser has indicated to the Debtors that its willingness to proceed with the Aircraft Sale Transaction is contingent upon the name of the Purchaser being filed under seal. It is customary in similar aircraft sale transactions outside of bankruptcy to not disclose such information."

Harvey Gulf International Marine Seal Approval Sought

Bank of America filed with the U.S. Bankruptcy Court an emergency motion to file under seal exhibits to the omnibus response to objections to Harvey Gulf International Marine’s Plan Confirmation. The seal motion explains, “The Response attaches certain exhibits, which are confidential according to their own terms or reflect confidential negotiations among the parties. Accordingly, the Agent seeks to file these Exhibits under seal out of an abundance of caution. Pursuant to Bankruptcy Code Sections 105(a) and 107(b), Fed. R. Bankr. P. 9018 and BLR 9037-1, the Agent requests that the Court enter an Order permitting the Exhibits to be filed and maintained under seal….The Agent respectfully submits that it is appropriate for the Court to consider this Motion on an emergency basis in light of the imminent deadline to respond to the Objections and the upcoming confirmation hearing. Because the Exhibits are pertinent to the Court’s consideration of the Response to the Objections, the Agent respectfully requests that the Court consider this Motion in connection with the confirmation hearing scheduled to commence at 3:30 p.m. (Central Time) on May 22, 2018.”

Pacific Drilling LTIP Approved

The U.S. Bankruptcy Court issued an order approving Pacific Drilling’s (“PDSA”) motion for entry of an order approving its long term incentive plan (LTIP) and authorizing, but not directing, the Debtors to (a) award and pay certain earned ordinary course compensation under the 2018 LTIP and (b) otherwise continue the 2018 LTIP in the ordinary course of business on a post-petition basis. As previously reported, "PDSA's compensation philosophy consistently weights total target compensation opportunities...less heavily towards fixed salary and more heavily towards performance-based and longer-term compensation....The LTIP was designed to pay a meaningful portion of regular, targeted annual compensation in a form that would drive performance by Employees. Consistent with their historical practice, the proposed 2018 LTIP awards total $2,276,000. In that connection, only minor changes have been implemented to the 2018 LTIP in light of the Debtors' restructuring efforts and the Company's current stock price."

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