Miller Energy disclosure statement gains court’s approval

By Mark Reccek

Bethlehem, Pa., Dec. 18 – Miller Energy Resources, Inc.’s disclosure statement was approved, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Alaska.

Creditor treatment pursuant to the plan includes:

• Holders of priority claims will be paid in full;

• Holders of lender secured claims will receive a pro-rata distribution of 100% and their pro rata share of the new notes in the amount of $60 million, or in such other amount disclosed in the plan supplement;

• Holder of other secured claims will have their claims reinstated, paid in full, collateral surrendered or offset against the claims of debtors;

• Holders of general unsecured claims will receive a pro-rata distribution of trust interests with an unsecured cash distribution of $3.5 million subject to the terms of the trust if the class votes to accept the plan, and for lender deficiency claims holders of general unsecured claims will receive a pro-rata share of the unsecured cash distribution of $1 million and no creditor trust will be established if the class votes to reject the plan;

• Holders of allowed administrative expenses, professional fee claims, priority tax claims, other priority claims and other secured claims will be paid in full;

• Holders of Miller equity interests will receive no distribution and are deemed to reject the plan; and

• Holders of Miller subsidiary debtor interests will be reinstated and vested in the reorganized company.

As previously reported, the company’s Chapter 11 plan term sheet “provides a baseline recovery for all stakeholders, with the debtors retaining the ability to seek and pursue other transactions that could potentially increase recovery to all stakeholders.

Miller Energy chief executive officer Carl F. Giesler Jr. previously said the plan term sheet provides the framework for a consensual restructuring with Miller’s second-lien lenders through a debt-to-equity swap under which those lenders would convert their outstanding claims into new first-lien secured notes and 100% of the equity in the reorganized company.

The plan term sheet also provides unsecured creditors with a guaranteed minimum cash recovery and warrants to purchase equity in the new company and provides existing preferred and common shareholders with warrants to purchase equity in the new company, assuming their respective classes vote in favor of the plan.

The plan confirmation hearing is scheduled for Jan. 27.

Miller Energy is a Houston-based oil and natural gas production company focused on Alaska. The company filed for bankruptcy on Oct. 1 under Chapter 11 case number 15-00236.

© 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.