Tuscany International gets court confirmation on reorganization plan

By Kali Hays

New York, May 22 - Tuscany International Drilling, Inc. received confirmation of its amended plan of reorganization, according to a Wednesday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Tuscany 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.

Both holding parties will receive recovery under the amended plan, whereas under the original plan, they were slated to receive none.

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 the 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 the 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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