Shale Support statement approved; plan confirmation hearing Oct. 29

By Caroline Salls

Pittsburgh, Sept. 18 – Shale Support Global Holdings, LLC obtained court approval of the disclosure statement for its plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan confirmation hearing is scheduled for Oct. 29.

An $80 million exit facility will be provided by Shale Support’s term loan lenders to fund plan payments and the reorganized debtors’ post-emergence operations.

According to the disclosure statement, the plan calls for payment in full of all administrative claims and priority claims in cash.

Holders of debtor-in-possession facility claims will receive distributions of a principal portion of an exit facility.

Holders of secured term loan claims will receive a share of new membership interests and a portion of the exit facility.

Holders of convenience class claims will receive a share of $250,000 in cash.

Holders of general unsecured claims will receive a share the greater of $1 million in cash or 50% of the net proceeds of the company’s Cudd litigation.

Interests in Shale Support will be cancelled and extinguished.

Interests in subsidiary debtors will be reinstated or cancelled and released without distribution.

Shale Support said the plan constitutes a settlement under which the term lenders will convert roughly $80 million of funded debt into the new membership interests and a portion of the exit facility, provide funding for the payment of priority and administrative claims and cure costs, provide funding for the general unsecured and convenience class recovery pool, forgo any claim for the decrease in value of their pre-bankruptcy collateral, forgo their right to receive a share of the general unsecured claims recovery and provide the exit facility.

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.

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