Bankruptcy News

Stone Energy Financials Announced

Stone Energy in its press release announced fourth quarter 2016 financials, reporting a net loss of $116.4 million, or $20.76 per share, on oil and gas revenue of $112.2 million, compared to a net loss of $318.7 million, or $57.63 per share, on oil and gas revenue of $106.2 million in the fourth quarter of 2015. The adjusted net loss for the fourth quarter of 2016, which excludes impairment charges of $73.1 million, was $27.3 million, or $4.88 per share. For full year 2016, Stone Energy reported a net loss of $590.6 million, or $105.63 per share, on oil and gas revenue of $374.7 million, compared to a net loss of $1.1 billion, or $197.45 per share, on oil and gas revenue of $532.3 million for full year 2015. The adjusted net loss for full year 2016, which excludes impairment charges of $357.4 million, was $154.5 million, or $27.63 per share. Restructuring expenses for the fourth quarter of 2016 were $13.4 million, and for full year 2016 were $29.6 million. Reorganization items for the fourth quarter and full year 2016 were $10.9 million, which represented an $8.3 million non-cash charge to write-off all deferred financing costs and associated unamortized discounts and premiums associated with the Company's 2017 convertible notes and 2022 notes and $2.6 million of expenses supporting its restructuring effort, including legal and financial advisory costs.

Violin Memory Plan Filed

Violin Memory filed with the U.S. Bankruptcy Court a First Amended Chapter 11 Plan of Reorganization and a related Disclosure Statement. Among other things, the Disclosure Statement adds the following text, "Under the Plan, prior to the Effective Date, the Debtor and Plan Sponsor shall use commercially reasonable efforts to consult in good faith and reach agreement with respect to Contingent Administrative claims, and shall fund the Incremental Reserve (which shall be transferred to the Distribution Trust on the Effective Date) or the satisfaction of such claims, subject to certain conditions as set forth in the Plan, with the remaining balance (if any) to be distributed to the Reorganized Debtor." The Disclosure Statement establishes April 10, 2017 as the final date by which interested parties must cast Plan ballots.

Azure Midstream Partners Expedited Consideration Approved

The U.S. Bankruptcy Court issued an order approving Azure Midstream Partners' motion for expedited consideration of its motion for the sale of substantially all of the Debtors' assets; approving the Debtors' selection of the stalking horse purchaser and the provision of bid protections to the stalking horse purchaser; establishing dates for (a) an auction if the Debtors receive one or more timely and acceptable qualified bids and (b) a final sale hearing to approve the sale of assets. As previously reported, "After extensive deliberations with their advisors and separate negotiations with the potential bidders that participated in the second stage of the process, the Debtors have elected to proceed with the bid submitted by M5 Midstream LLC (the 'Stalking Horse Purchaser') as the highest or otherwise best bid received for the Assets, subject to the Debtors' receipt of any higher or otherwise better bids at an Auction to be held on March 10, 2017….The total consideration to be realized by the Debtors is approximately $151,100,000, subject to certain adjustments, the 'Stalking Horse Bid.'…The Stalking Horse Purchaser shall be entitled to a Break-Up fee equal to 3% of the Purchase Price and an Expense Reimbursement of up to $1,000,000. Qualified bids must be submitted on or before March 6, 2017. An auction, if required, will be conducted on March 10, 2017; and the Court will conduct a sale hearing on March 15, 2017."

Republic Airways Holdings Objection Filed

Wells Fargo Bank Northwest and ALF VI (together, the "Residco Parties") filed with the U.S. Bankruptcy Court an objection to Republic Airways Holdings' Second Amended Joint Plan of Reorganization. The objection asserts, "The Residco Parties have interposed this Objection to address the uncertainty and extreme prejudice created by the proposed substantive consolidation provisions contained in the Proposed Plan. The Residco Parties object to the attempted substantive consolidation here because such the proposed consolidation may cause Residco's less risky (and hence potentially more valuable) guaranty claims to be expunged, while the riskier and potentially smaller lease claims survive, which result would cause material harm to the Residco Parties. Specifically, under New York law the standards for allowance of guaranty claims based upon liquidated damage provisions are different than the standards for allowing such lease rejection damage claims, which differences could lead to a claims differential of over $50 million. Accordingly, the Residco Parties hereby request that this Court resolve the unclear application of the substantive consolidation provisions where a primary claim and a guaranty claim are allowed in different amounts by treating the allowed amount of such claims as the average of such two claims. If this Court accepts such proposal, then the Residco Parties' objections to the Proposed Plan would be fully resolved."

CHC Group Term Sheets Approved

The U.S. Bankruptcy Court approved CHC Group's motion to (i) enter into and perform under a restructuring lease term sheet with Waypoint Leasing (Ireland) Limited and (ii) assume certain related unexpired leases and executory contracts. As previously reported, "These agreements will enable the Debtors to secure the necessary flexibility and cost savings to reach the goals set forth in the Debtors' restructured fleet plan, which was one of the primary objectives of these chapter 11 cases. Accordingly, the Debtors are now poised to emerge from chapter 11 in the near future with their fleet and balance sheet restructured and to continue to be a successful and profitable global helicopter services provider." The Court also approved CHC Group's motion to (i) enter into and perform under restructuring lease term sheets with Lombard North Central with respect to aircraft with manufacturer's serial numbers 31155, 920034 and 920127 and (ii) enter into and perform under settlement agreements with Lombard North Central with respect to aircraft with manufacturer's serial numbers 2707 and 760720. As previously reported, "With respect to MSN 31155, an Allowed Primary General Unsecured Claim classified in Heliworld Leasing Limited's Class 7 General Unsecured Claims class of $315,855.70; and an Allowed Secondary General Unsecured Claim classified in CHC Helicopter S.A.'s Class 7 General Unsecured Claims class of $315,855.70; With respect to MSN 920034, an Allowed Primary General Unsecured Claim classified in Heli-One Leasing ULC's Class 7 General Unsecured Claims class of $125,117.26; and an Allowed Secondary General Unsecured Claim classified in CHC Helicopter S.A.'s Class 7 General Unsecured Claims class of $125,117.26; With respect to MSN 920127, an Allowed Primary General Unsecured Claim classified in CHC Helicopters (Barbados)'s Class 7 General Unsecured Claims class of $852,253; and an Allowed Secondary General Unsecured Claim classified in CHC Helicopter S.A.'s Class 7 General Unsecured Claims class of $852,253….With respect to MSN 2707, an Allowed Primary General Unsecured Claim (as defined in the Settlement Agreements) classified in CHC Helicopters (Barbados) SRL's Class 7 General Unsecured Claims class of $4,120,724; and an Allowed Secondary General Unsecured Claim classified in CHC Helicopter S.A.'s Class 7 General Unsecured Claims class of $4,120,724. With respect to MSN 760720, an Allowed Primary General Unsecured Claim classified in Heli-One Leasing ULC's Class 7 General Unsecured Claims class of $2,549,250; and an Allowed Secondary General Unsecured Claim classified in CHC Helicopter S.A.'s Class 7 General Unsecured Claims class of $2,549,250."

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