Paragon Offshore announced that the High Court of Justice, Chancery Division, Companies Court of England and Wales granted an order appointing two partners of Deloitte LLP as administrators of the Company ("Joint Administrators"). As previously disclosed by the Company, the appointment of the Joint Administrators is a necessary component of its Chapter 11 Plan filed with the U.S. Bankruptcy Court, under which Paragon Offshore's existing equity is deemed worthless and the Company's secured creditors and unsecured bondholders will receive equity in a new reorganized parent company. Assuming the Court confirms the Plan in June 2017, Paragon Offshore anticipates July 2017 emergence; however, this timing is subject to the completion of certain conditions precedent to emergence including, among other things, the reorganization of the corporate structure of Paragon Offshore and its subsidiaries. As previously disclosed, under administration, Paragon Offshore will continue to conduct business in its normal course. The Joint Administrators will assume all powers to manage the affairs of the Company; however, Paragon Offshore's existing board has agreed to remain involved in an advisory capacity to the Joint Administrators until the Company emerges from Chapter 11 protection.
China Fishery Group's Chapter 11 trustee filed with the U.S. Bankruptcy Court a motion for an order authorizing the Company to obtain inter-company post-petition financing on a super-priority administrative claim basis. The motion explains, "The Trustee determined that certain of the non-Debtor affiliates in which CFG Peru Singapore has a direct or indirect interest, the CFG Peru Singapore Subsidiaries, would be a logical source of such funding. Third party lenders other than the CFG Peru Singapore Subsidiaries have been unwilling to lend to CFG Peru Singapore on its own given that CFG Peru Singapore has no operations of its own or assets other than its interest in the CFG Peru Singapore Subsidiaries and its other subsidiaries. Moreover, the CFG Peru Singapore Subsidiaries are currently in possession of funds generated from their operations and from the sale of non-core assets and expect to sell more non-core assets. As such, the CFG Peru Singapore Subsidiaries were a logical source for this short term financing….Lender is CFG Investment S.A.C. ('CFGI); borrower is CFG Peru Investments ('CFG Peru Singapore') and the commitment is $20,000,000. The interest rate is 8% and the default rate is 10%." The Court scheduled a June 6, 2017 hearing to consider the motion, with objections due by May 30, 2017.
Vanguard Natural Resources' ad hoc equity creditors' committee filed with the U.S. Bankruptcy Court an emergency motion to set a status conference on the Debtor's Disclosure Statement and to continue the May 30, 2017 Disclosure Statement hearing. The motion explains, "As of the filing of this Motion, the Debtors still have not filed an amendment to the fatally flawed Disclosure Statement or an amended plan. The Debtors continuously have informed this Court and other parties-in-interest that an amended disclosure statement and amended plan will be filed. The Equity Committee has heard this same refrain for weeks. Yet, to date, nothing has been filed. If the Debtors file their amended disclosure statement sometime today (which is unlikely), the Equity Committee will have less than 48 hours to digest what is expected to be a significant re-write of the document, communicate with its members, and file its objection, while at the same time preparing for the hearing on May 30, 2017 - one week away and over a holiday weekend….The Equity Committee requests that the Court set a status conference and continue the hearing on the Disclosure Statement and the Solicitation Procedures Motion to a date that is at least 28 days after the Debtors actually file their amended disclosure statement and plan."
When oil prices started collapsing in mid-2014 from over $100/barrel to under $27/barrel, most oil and natural gas exploration and production companies (E&Ps) were caught over-extended. Debt that previously was easily serviceable, especially with new drilling technologies opening up vast new oil and gas fields in North Dakota, Texas and Appalachia, quickly became unsupportable. Some companies, particularly the larger ones with less leverage, were able to adjust and regain their footing. Others struggled, with over 100 filing for U.S. Bankruptcy Court protection. When companies utilize the Chapter 11 process properly, they can emerge as lean and strong competitors; but many investors shy away from these companies coming out of bankruptcy for a variety of reasons: Since the start of 2016, over a dozen energy companies have emerged from bankruptcy as public companies. Knowledgeable distressed investors have not been able to soak up this large supply of new post-bankruptcy stocks, leading to their stock prices being even softer than usual. George Putnam's Turnaround Letter thinks many of these post-reorganization oil and gas stocks look like good bargains right now. http://www.turnaroundletter.com/publications/2
Oakridge Holdings and one affiliated Debtor filed for Chapter 11 protection with the U.S. bankruptcy Court in the District of Minnesota, lead case number 17-31669. The Company, which designs, engineers and manufactures aviation ground support equipment, is represented by Kenneth C. Edstrom of Sapientia Law Group. The U.S. Trustee assigned to the case scheduled a June 28, 2017 341-Meeting of Creditors.