American Eagle eyes cash collateral use, ‘deadlocked’ with creditors

By Kali Hays

New York, June 26 – American Eagle Energy Corp. is seeking final approval of an amended cash collateral agreement, according to a Thursday motion with the U.S. Bankruptcy Court for the District of Colorado.

Since being denied final approval of its cash collateral motion during a June 11 hearing, American Eagle has been working with its official committee of unsecured creditors and an informal group of noteholders towards an agreed upon motion.

Though the company said it has been able to incorporate changes into a proposed order and received support from the noteholder group, the company and the committee “remain deadlocked” on certain issues.

According to separate court filings, the committee is demanding a carve-out for its fees and expenses of $350,000 while American Eagle has requested a carve-out for the committee’s expenses of $200,000.

An additional point of contention is the language surrounding American Eagle’s secured parties’ claim entitlement and their right to credit bid the full amount of any pre-bankruptcy notes.

In order to proceed with access to cash collateral American Eagle has submitted two possible orders, one from the company and the other from the committee, and asked the court to approve the one best protecting all parties in interest.

As previously reported, the company received interim access to the cash collateral of the holders of its 11% senior secured notes due 2019 in early May in order to fund operations while in bankruptcy.

American Eagle is a Littleton, Colo.-based independent oil and gas acquisition, exploration and development company. The company filed for bankruptcy on May 8 under Chapter 11 case number 15-15073.

© 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.