Maxus Energy exclusive plan solicitation period extended to May 31

By Caroline Salls

Pittsburgh, April 6 – Maxus Energy Corp. obtained an extension of its exclusive period for soliciting votes on a Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Maxus’ exclusive solicitation period was extended through May 31.

As previously reported, the company filed a plan of liquidation in March that does not provide for implementation of a previously announced YPF, SA settlement.

Last week, YPF asked the court to deny the exclusivity extension.

“Allowing the debtors to extend their monopoly on the outcome of these cases will deprive creditors of the ability to decide between certain recovery under a settlement and protracted, risky litigation,” the YPF entities said.

Since Maxus’ bankruptcy filing, YPF said the company has been proceeding on a path that would have led to either approval of a settlement of the company’s claims against YPF or, if the settlement was not approved, litigation of those claims.

“But, now, in a stunning about-face, the independent directors have succumbed to pressure to abandon their own negotiated settlement agreement” and filed an amended Chapter 11 plan of liquidation, which was proposed by the company and its official committee of unsecured creditors.

YPF said the exclusivity extension should be denied to give it a chance to formulate and offer a settlement plan.

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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