Ursa Piceance files Chapter 11 plan and related disclosure statement

By Sarah Lizee

Olympia, Wash., Sept. 21 – Ursa Piceance Holdings LLC filed a Chapter 11 plan and related disclosure statement on Sunday with the U.S. Bankruptcy Court for the District of Delaware.

The plan contemplates that if an equitization restructuring is ultimately pursued, it will involve the equitization of the RBL claims. Otherwise, the debtors will sell all, or substantially all, of their assets.

If the restructuring transactions are consummated through the equitization restructuring, the debtors’ corporate structure will be streamlined under a single holding company, New Piceance, owned by the current RBL lenders or their designee, which holding company, either directly or through one of its subsidiaries, will acquire all of the assets of the debtors.

Alternatively, the plan includes a sale “toggle” feature, allowing for an asset sale.

The plan provides for the full satisfaction or reinstatement of allowed administrative claims, priority tax claims, other secured claims and other priority claims.

If an equitization restructuring is pursued, the plan provides that on the effective date, the reorganized debtors will enter into a $30 million senior secured exit facility with Wells Fargo Bank, NA as administrative agent.

Interest will be Libor plus 350 basis points.

Ursa is a Denver-based private energy company engaged in the development and production of oil and gas in the Piceance Basin, principally in rural areas of Western Colorado. The Chapter 11 case number is 20-12065.

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