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Glacial Energy and creditor committee look to enter global settlement
By Kali Hays
New York, May 30 - Glacial Energy Holdings Inc. and its official committee of unsecured creditors are seeking court authorization to enter a global settlement with Vantage Commodities Financial Services I, LLC and EDF Trading North America LLC, according to a Friday motion with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, Vantage is the company's pre-bankruptcy lender, debtor-in-possession lender in the amount of $122 million and current stalking horse bidder for substantially all of the company's assets.
Under the settlement, a fund of $1.3 million to $1.5 million (possibly higher depending on a future sale of secondary assets) will be established for carveout fees and expenses incurred by the committee and for the settlement of "non-ordinary" administrative expense claims.
The settlement also requires the mutual release of all avoidance actions against unsecured creditors by Glacial, the secured parties and the committee, according to the motion.
Approval of the settlement will allow the "sale process to proceed without objection from the committee and in a more certain environment rather than in connection with a case this is burdened by expense, delay and uncertain litigation" and will allow the company to "effectuate an orderly wind-down following approval and consummation of one or more going concern sale transactions," according to the motion.
A hearing to approve Glacial's asset sale will be held June 16.
Glacial Energy, a Sandwich, Mass.-based electricity and natural gas company, filed bankruptcy on April 10. The Chapter 11 case number is 14-10833.
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