Extraction Oil disclosure statement draws objection from U.S. Trustee

By Sarah Lizee

Olympia, Wash., Sept. 23 – Extraction Oil & Gas, Inc.’s disclosure statement for its joint plan of reorganization drew an objection from the U.S. Trustee overseeing the Chapter 11 cases, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

“The debtors have proposed a plan whereby certain general unsecured creditors and the public common shareholders are slated to receive an indeterminate, speculative and perhaps negligible distribution under the plan,” Regions 3 and 9 trustee Andrew R. Vara said in his objection.

“On the other hand, other equity holders will receive nothing under the plan, are deemed to reject the plan and have no right to vote on the plan.

“Despite such treatment, the debtors seek approval to have these parties consent to providing third party releases to non-debtor parties unless such creditors and equity holders return a ballot or from opting out of such releases.”

The U.S. trustee further objected to the disclosure statement because it does not provide adequate information.

Extraction Oil & Gas is based in Denver. The company filed bankruptcy on June 14 under Chapter 11 case number 20-11548.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.