Shale Support unsecured creditors committee objects to disclosure

By Caroline Salls

Pittsburgh, Sept. 17 – Shale Support Global Holdings, LLC’s official committee of unsecured creditors objected to the disclosure statement for the company’s plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The committee said the heart of the plan is a settlement between Shale Support, joint plan sponsor BSP Agency, LLC and the company’s pre-bankruptcy term loan lenders, which transfers all of the Shale Support debtors’ value to the term loan parties and leaves holders of general unsecured claims with an all likelihood single digit percentage recovery.

The committee said it was not involved in the plan negotiations, so it needs to rely on the disclosure statement to make an informed decision on the plan.

However, the creditor group said the disclosure statement does not provide enough information on formulation of the plan, the treatment of general unsecured claims, avoidance actions and other causes of action and third-party releases.

Houston-based Shale Support is a provider of logistical services and frac-sand. The company filed bankruptcy on July 11 under Chapter 11 case number 19-33884.

© 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.