Tuscany International Drilling amended Chapter 11 plan to be confirmed

By Caroline Salls

Pittsburgh, May 19 - Tuscany International Drilling Inc.'s amended plan of reorganization will be confirmed, according to a minute entry filed May 19 with the U.S. Bankruptcy Court for the District of Delaware.

A revised confirmation order will be submitted to the court, the minute entry said.

The company filed the amended version of the plan on Monday, revising the proposed treatment for holders of general unsecured claims against the Tuscany holding company and old holding company interests in accordance with a settlement agreement.

Under the amended plan, holders of general unsecured claims against the holding company will receive a share of net cash proceeds related to settlement assets after payment in full of a debtor-in-possession facility claim and an adequate protection claim.

Meanwhile, holders of old holding company interests will receive a share of the net settlement cash proceeds after payment in full of the DIP facility claim, adequate protection claim, unsecured deficiency claims and general unsecured claims.

Both of these classes were slated to receive no recovery under the original plan.

Plan terms

The terms of the amended 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 intercompany claims will receive no recovery;

• Holders of general unsecured claims against the holding company will receive a share of net cash proceeds from the settlement after payment of DIP facility and adequate protection claims;

• 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

• Holders of old holding company interests will receive a share of net settlement cash after payment of DIP facility, adequate protection, unsecured deficiency and general unsecured claims.

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

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