EXCO Resources (a/k/a TXOK Energy Resources Company) and 14 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 18-30155. The Company, which is engaged in the exploration, exploitation, acquisition, development and production of onshore U.S. oil and natural gas properties, is represented by Marcus Alan Helt of Gardere Wynne Sewell. EXCO Resources notes that the Company continues to engage in "constructive discussions" with its creditor constituencies regarding the terms of a financial restructuring plan. A corporate release notes, "In conjunction with this process, EXCO will explore potential strategic alternatives to maximize value for the benefit of its stakeholders, including the marketing of the Company's assets, which may result in a sale of certain or substantially all of its assets under Section 363 of the Bankruptcy Code or as part of the plan of reorganization." EXCO Resources has received a commitment of $250 million in debtor-in-possession financing from certain of its existing lenders including Fairfax Financial Holdings and its affiliates; Bluescape Resources Company and its affiliates, including Cove Key Management; and JPMorgan Chase Bank and certain of its affiliates. The financing, which is subject to Court approval, is expected to refinance the Company's existing reserve-based credit agreement and support the Company's day-to-day operations during the restructuring process. Harold L. Hickey, EXCO Resources' C.E.O. and president, notes, "Like many other companies in our industry, EXCO's financial position has been negatively impacted by the sustained downturn in commodity prices and uncertainty in the energy market. Despite having taken actions to mitigate the impact of these factors, including renegotiating certain commercial contracts, reducing costs, restructuring our balance sheet and divesting assets, we continue to face increasing liquidity pressures as we navigate the competitive environment. We believe that this financial restructuring process will enable us to strengthen our balance sheet as we continue to operate in the ordinary course of business. With our strong asset base and operational expertise, we remain confident in our ability to deliver value for the benefit of our stakeholders."
J.G. Wentworth filed with the U.S. Bankruptcy Court an Amended Joint Pre-Packaged Plan of Reorganization. According to documents filed with the Court, "Notwithstanding anything to the contrary in the Plan or the Plan Documents, (a) each Administrative Claim and any Claim arising prior to the Effective Date in Class 2 or 3 (including Claims for Cure and Claims arising from the rejection of any Executory Contract or Unexpired Lease, if any) of the Plan (each, an 'Unimpaired Claim') shall not be deemed settled, satisfied, resolved, released, discharged, barred or enjoined by any provision of the Plan or the Plan Documents, and (b) the property of the Debtors' Estates that vests in the Reorganized Debtors pursuant to Article V.I of the Plan shall not be free and clear of the right of the Holder of such Unimpaired Claim to enforce its contractual rights in respect of its Unimpaired Claim against the Reorganized Debtors, in each case, until such Claim has been (x) paid in full in accordance with applicable law, or on terms agreed to between the Holder of such Claim and the Debtors or Reorganized Debtors, or in accordance with the terms and conditions of the particular transaction giving rise to such Claim or (y) otherwise satisfied or disposed of as determined by a court of competent jurisdiction. The Debtors, the Reorganized Debtors and any other Entity shall retain all defenses, counterclaims, rights to setoff, and rights to recoupment, if any, as to Unimpaired Claims….Each holder of New Class A Common Stock and New Class B Common Stock shall be deemed to be a party to and bound to the terms of the Stockholders Agreement and each holder of the New Partnership Interests shall be deemed to be a party to and bound to the terms of the New Partnership Operating Agreement, as applicable, from and after the Effective Date even if not a signatory thereto."
Global A&T Electronics' Joint Chapter 11 Plan of Reorganization (with technical modifications), and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on December 22, 2017. BankruptcyData's detailed Plan Summary notes, "The Restructuring Support Agreement and Plan provide for a comprehensive restructuring of Claims against and Interests in the Debtors, preserve the going-concern value of the Debtors' businesses, maximize recoveries available to all constituents, and provides for an equitable distribution to the Debtors' stakeholders. More specifically, the Restructuring Support Agreement and Plan, provide, among other things, that on the Effective Date: the Debtors will issue $665 million in 8.5% New Secured Notes due 2022; will distribute approximately $517.64 million of the New Secured Notes to the Initial Noteholders and approximately $84.9 million of the New Secured Notes to the Additional Noteholders; distribute $8.89 million of cash to the Initial Noteholders; will distribute an additional $11.11 million of the New Secured Notes and $1.11 million of cash to the 2014 Plaintiff Initial Noteholders. UTAC, the Debtors' ultimate equity owner, will issue common equity to the Additional Noteholders in such amount as to constitute 31% of the outstanding common equity of UTAC on a post-emergence basis, subject to dilution by any post-emergence management incentive plan adopted by UTAC, with the Affinity Entities (other than the Affiliate Noteholder) and TPG collectively holding, directly or indirectly, the other 69% of the outstanding common equity of UTAC on a post-emergence basis." This semiconductor assembly and test services provider filed for Chapter 11 protection on December 17, 2017, listing $1.4 billion in pre-petition assets.
Rentech's official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors' disclosures in the Combined Plan and Disclosure Statement. The committee asserts, "The Combined Plan and Disclosure Statement is based on a flawed process that is designed to protect and benefit GSO and the Debtors' insiders, and leave general unsecured creditors - the fulcrum security in these cases - with only a hope and a prayer, and no control over the process or outcome. To the extent that the Combined Plan and Disclosure Statement move forward, it should not be on the lightning fast timeline that is proposed. Indeed, there is no good reason why these cases must move forward at the pace dictated by the Debtors and GSO. The Debtors are mere holding companies with no operations. Additional time will allow any proposed sales to finalize and for proceeds to flow, eventually, upstream to the Debtors for distribution….Additionally, more time will allow recoveries to unsecured creditors to be properly quantified in a disclosure statement prior to solicitation….Importantly, the proposed plan is premised on one voting class (Class 3 General Unsecured Claims), and thus, the Debtors will fail to achieve confirmation of the Combined Plan and Disclosure Statement if the general unsecured creditors class votes against the plan. If the unsecured creditors are compelled to vote against the plan due to the lack of adequate disclosures, then the accelerated process proposed by the Debtors will be for naught and a waste of time and money….Finally, given that unsecured creditors are the fulcrum in these cases, the Committee alone must have control over the selection of the liquidating trustee and the wind down post-confirmation." The committee also filed a separate objection to the Company's motion to sell the assets of non-debtor subsidiaries.
COPSync filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including March 28, 2018 and May 27, 2018, respectively. The motion explains, "The Debtor and Debtor's counsel are currently evaluating the proof of claims which have been filed and are continuing to be filed as the Bar Date is January 17, 2018 and for governmental units it is March 28, 2018. Debtor requests additional time to determine and analyze the amounts and documentation of the proof of claims that are filed prior to the January 17, and March 28, 2018 deadline in the order to properly reflect information in the preparation of the disclosure statement and plan of reorganization regarding classification of the claims and sufficient funding around which a plan would be based." The Company also seeks expedited consideration of the motion at a hearing to be held on January 24, 2018.