Maxus Energy files plan of liquidation to distribute estate property

By Caroline Salls

Pittsburgh, Dec. 30 – Maxus Energy Corp. filed its plan of liquidation and related disclosure statement Dec. 29 with the U.S. Bankruptcy Court for the District of Delaware.

The company said in the disclosure statement that the primary objective of the plan is to maximize the value of recoveries to all holders of allowed claims and to distribute all property of the estates that is or becomes available for distribution.

Holders of debtor-in-possession tranche A claims will be paid in full in cash if they file a support notice before the start of the disclosure statement hearing or will receive cash equal to the greater of the total amount of liquidated proceeds of the DIP collateral and $20 million, as well as an up to $8.75 million non-recourse promissory note, if they do not file a support notice.

Holders of DIP tranche B claims will receive no distribution until all other claims are paid in full.

Holders of other secured claims will receive either cash equal to the amount of the claim, the claim will be reinstated or the holders will receive the collateral securing the claims.

Unsecured convenience claims will be paid in full in cash.

Holders of general unsecured claims will receive a share of cash from liquidating trust distributable assets.

Holders of retiree claims will receive treatment as provided for in any applicable modification agreement or modification order.

If Maxus receives court approval of a YPF agreement before confirmation of the plan, an environmental response trust will be created in exchange for all government environmental claims. If the agreement is not approved, all government environmental claims will be classified as general unsecured claims.

Holders of equity interests and intercompany claims will receive no distribution.

Maxus is a Houston-based subsidiary of YPF, SA, a Buenos Aires petroleum and natural gas company. Maxus filed bankruptcy on June 17 under Chapter 11 case number 16-11501.

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