Tuscany International disclosure approved; plan hearing set for May 19

By Caroline Salls

Pittsburgh, April 9 - Tuscany International Drilling Inc. received court approval of the disclosure statement for its plan of reorganization, according to an April 9 filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for May 19. The deadline for submitting plan votes and objecting to the plan is 4 p.m. ET on May 12.

As previously reported, Tuscany entered into a restructuring support agreement with its pre-bankruptcy lenders and agent.

The terms of the plan include the following:

• A newly formed entity (NewCo) organized by some pre-bankruptcy lenders will credit bid a principal amount of their pre-bankruptcy credit facility claims or debtor-in-possession facility claims in exchange for substantially all of the holding company's assets;

• The DIP facility claims will be satisfied in cash equal to the amount of the claim;

• The holders of pre-bankruptcy credit agreement claims and/or DIP facility claims will have their claims partially satisfied through the credit bid. The remaining portion of their claims will be repaid in full and/or refinanced or replaced by obligations of NewCo under any exit facility;

• Holders of general unsecured claims against the holding company and intercompany claims will receive no recovery;

• Holders of general unsecured claims against an affiliate debtor will be paid in full in cash;

• All old affiliate interests in the company's affiliate debtor will remain effective and be transferred to the proposed purchaser; and

• All old holding company interests will be cancelled on the plan effective date.

Tuscany, a Calgary, Alta.-based oilfield services provider, filed bankruptcy on Feb. 2. The Chapter 11 case number is 14-10193.

© 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.