Quicksilver Resources files amended plan of liquidation, disclosure

By Caroline Salls

Pittsburgh, July 18 – Quicksilver Resources Inc. filed an amended plan of liquidation and related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware, according to an 8-K filed Monday with the Securities and Exchange Commission.

As part of a global settlement resolving the claims of and against the holders of second-lien claims, the company said second-lien creditors agreed that they will not receive any distribution on account of their deficiency claims.

The initial liquidation plan said the plan may include a provision that such an agreement by the holders of second-lien claims would not apply to any unsecured claims held by an entity that challenged the terms of the global settlement.

However, Quicksilver said this provision ultimately was not included in the amended plan.

Treatment of creditors will include the following:

• Holders of priority claims and first-lien claims will be paid in full in cash;

• Holders of other secured claims will receive, as determined at the option of the company or a liquidation trustee, payment in full in cash including interest or the collateral securing the claim;

• Holders of second-lien secured claims will receive a share of second-lien plan consideration, which will include a share of specified cash on hand as of the plan effective date, 100% of the first $2.5 million of recoveries from Canadian sale proceeds, 50% of Canadian proceeds recoveries in excess of $2.5 million up to $17.5 million in total recoveries from the Canadian proceeds, 100% of Canadian proceeds in excess of $17.5 million and liquidation trust interests;

• Holders of general unsecured claims will receive a share of an unsecured plan consideration;

• Holders of subordinated note claims will receive a share of the unsecured plan consideration, provided that the distributions otherwise intended for these noteholders will instead be distributed to holders of claims entitled to the benefit of subordination under the indenture until they are paid in full; and

• Holders of 510 claims, intercompany interests and non-intercompany interests will receive no distribution.

As previously reported, the company’s disclosure statement was approved on June 29. The plan confirmation hearing is scheduled for Aug. 15.

Quicksilver, based in Fort Worth, is an independent oil and gas exploration and production company. The company filed for bankruptcy March 17, 2015, under Chapter 11 case number 15-10585.

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