Maxus Energy amended plan of liquidation takes effect as of July 14

By Caroline Salls

Pittsburgh, July 17 – Maxus Energy Corp.’s amended plan of liquidation took effect on July 14, according to a notice filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on May 22.

Maxus said in March that the amended plan does not provide for implementation of a previously announced settlement reached with YPF Holdings, Inc. Instead of the YPF settlement, the amended plan calls for the creation of a liquidating trust and the transfer of some of the company’s assets, including all causes of action, into the trust.

Also under the amended plan, an environmental response trust will receive class B beneficial interests in the liquidating trust and will distribute amounts received to creditors.

A property trust will be created to receive, hold title to, ensure the security of and provide potentially responsible parties with access to the company’s owned real property until the properties are sold.

The environmental response and property trusts will be funded from the proceeds of a liquidating trust promissory note.

Under the plan, priority tax claims and other priority claims and general unsecured convenience claims will be paid in full in cash.

Holders of other secured claims will either have their claims reinstated, be paid in full in cash or receive the property securing the claim, with any deficiency treated as a general unsecured claim.

Holders of general unsecured claims will receive a share of class A interests in the liquidating trust and class C beneficial interests.

Holders of specified Diamond Alkali site environmental claims will receive a share of class B beneficial interests in an environmental response/restoration trust.

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

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 for bankruptcy on June 17, 2016 under Chapter 11 case number 16-11501.

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