Quicksilver Resources amended liquidation plan effective as of Aug. 31

By Caroline Salls

Pittsburgh, Sept. 1 – Quicksilver Resources Inc.’s first amended joint plan of liquidation took effect on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.

The plan was confirmed on Aug. 16 by the U.S. Bankruptcy Court for the District of Delaware.

The company said it will file a Form 15 with the SEC to terminate the registration of its common stock.

As previously reported, 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 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.

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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