Black Elk Energy Offshore third amended plan of liquidation confirmed

By Caroline Salls

Pittsburgh, July 14 – Black Elk Energy Offshore Operations, LLC’s third amended plan of liquidation was confirmed Wednesday by the U.S. Bankruptcy Court for the Southern District of Texas.

Black Elk said the plan calls for the wind-down of its operations, the liquidation of its assets, the satisfaction of its environmental liabilities and the distribution of its remaining assets to creditors.

Two trusts will be created under the plan, a litigation trust and a liquidation trust.

Debtor-in-possession superpriority claims, administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash under the plan.

The plan trusts will enter into a DIP exit facility in full satisfaction of noteholder DIP secured claims and an Argonaut DIP secured claim.

Holders of senior notes claims will receive, to the extent not otherwise satisfied from collateral proceeds, senior litigation trust interests in the amount of adequate protection liens to the extent they attach to trust causes of action, as well as a senior liquidated trust interest.

Holders of general unsecured claims will receive a share of litigation trust beneficial interests and be entitled to receive distributions from the litigation trust.

Interest holders will receive no distribution.

Based in Houston, Black Elk Energy is an oil and gas company that filed for bankruptcy on Sept. 15, 2015 under the Chapter 11 case number 15-34287.

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