Green Field amended plan cuts litigation trust, amends claim treatment

By Caroline Salls

Pittsburgh, March 7 - Green Field Energy Services, Inc. filed an amended plan of liquidation and related disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The amended plan eliminates the creation of a litigation trust and amends the treatment of senior noteholder claims and general unsecured claims.

Under the amended plan, senior noteholders will receive a senior noteholder distribution until the allowed amount of the claim is paid in full, provided that the first $1 million of the distribution will be made directly to an acquisition entity and the remaining distribution will be made to each senior noteholder through the senior secured notes indenture trustee.

Under the original version of the plan, holders of senior noteholder claims were entitled to receive a share of 70% of the class A preferred equity of the new company, 50% of the class B preferred equity of the new company and 30% of the common equity of the new company, a specified interest was to be transferred to the new company, and the senior secured notes indenture trustee was to receive distributions of cash from the liquidation trust for the benefit of the noteholders until the total value contributed to the new company by the Green Field debtors and the liquidation trustee, plus the total value distributed to the indenture trustee was equal to the senior noteholder allowed claim amount.

Meanwhile, general unsecured creditors will be entitled to receive, beginning on the initial distribution date for third-tier claims, a share of the available cash remaining after the payment of, or establishment of adequate reserves for, all first-tier claims and the senior noteholder distribution.

These creditors were scheduled to receive a share of litigation trust interests under the original plan.

As previously reported, the plan provides for the liquidation of estate assets, including the investigation and prosecution of causes of action by a liquidation trust.

Creditor treatment

Treatment of creditors will include the following:

• Administrative claims, priority tax claims, priority non-tax claims, Shell secured claims and debtor-in-possession financing claims will be paid in full;

• Holders of other secured claims will either be paid in full in cash or will receive the collateral securing their claims to the extent that the collateral does not constitute collateral securing senior noteholder claims or, if it does secure the noteholder claims, to the extent that the lien securing the other secured claim is senior to that securing the senior noteholder claims;

• Holders of senior noteholder claims will receive a senior noteholder distribution until the allowed amount of the claim is paid in full, provided that the first $1 million of the distribution will be made directly to an acquisition entity and the remaining distribution will be made to each senior noteholder through the senior secured notes indenture trustee.

Senior noteholder claims are not expected to be paid in full;

• Shell will receive a release in exchange for the "Shell other claim";

• Holders of general unsecured claims will be entitled to receive, beginning on the initial distribution date for third-tier claims, a share of the available cash remaining after the payment of, or establishment of adequate reserves for, all first-tier claims and the senior noteholder distribution; and

• Holders of subordinated other claims, subordinated stock claims, Green Field Energy interests and subsidiary interests will receive no distribution.

Green Field is a Lafayette, La.-based energy services company that operates in the well services and hydraulic fracturing services lines. The company filed for bankruptcy on Oct. 27 under Chapter 11 case number 13-12783.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.