BPZ Resources gets OK of disclosure statement, confirmation of plan

By Mark Reccek

Bethlehem, Pa., Nov. 12 – BPZ Resources, Inc. received court approval of its amended disclosure statement and confirmation of the Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, creditor treatment pursuant to the plan includes:

• Holders of priority non-tax claims will be paid in full in cash and voting rights are unimpaired by the plan;

• Holders of secured claims will receive cash in an amount equal to the value of the collateral and voting rights are unimpaired by the plan;

• Holders of general unsecured claims will receive a pro rata share of the liquidating trust interests. Also, each holder of a claim (other than a noteholder claim) will be permitted to make a convenience election to reduce its claim to $3,000 and receive, in lieu of its pro rata share of the liquidating trust interests, a one-time payment in cash of 20% of the allowed amount of such claim. Any such holder who makes the convenience election will not be entitled to receive any other recovery or distribution on account of such claim;

• Holders of general unsecured claims are entitled to vote to accept or reject the plan;

• Holders of subordinated claims will neither receive nor retain any property under the plan. On the effective date, all subordinated claims will be discharged;

• Holders of equity interests will neither receive nor retain any property under the plan. All equity interests will be canceled, and all claims filed on account of equity interests will be deemed disallowed by operation of the plan.

• Holders of intercompany claims will neither receive nor retain any property under the plan. All intercompany claims will be released.

In terms of voting, holders are impaired by the plan.

The plan will be implemented by establishment of the liquidating trust.

Houston-based BPZ Resources is an independent oil and gas exploration and production company with operations in Peru and Ecuador. The company filed for bankruptcy on March 9, 2015 under Chapter 11 case number 15-60016.

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