BankruptcyData's detailed analysis and summary of Unilife's First Amended Combined Disclosure Statement and Chapter 11 Plan of Liquidation, dated October 24, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on December 13, 2017; however, an effective date has not yet been issued. BankruptcyData notes, "The Bankruptcy filing and Plan of Liquidation attempt to implement a process to market and sell the Debtors’ assets so that the Debtors can maximize the value of their Estates and preserve the Debtors ongoing business. On July 21, 2017 the Bankruptcy Court approved a licensing agreement sale between the Debtors and Amgen Inc. in which Amgen agreed to pay $10 million for the Company's intellectual property and inventory; a intellectual property sale between the Debtors and Hikma Pharmaceuticals in which Hikma Pharmaceuticals agreed to pay $7.5 million; and a collateral agreement between the Debtors and ROS Acquisition Offshore LP, which lent the Debtors at least $70 million since 2014, in which ROS Acquisition Offshore LP retained its collateral for $25 million." BankruptcyData premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to Unilife's April 12, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
BankruptcyData's detailed analysis and summary of GenOn Energy's Third Amended Joint Chapter 11 Plan of Reorganization, dated December 10, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on December 12, 2017; however, an effective date has not yet been issued. BankruptcyData notes, "The Plan and RSA contemplates the Debtors’ restructuring through, among other things, cash payments in full satisfaction of the Revolving Credit Facility Claims, the equitization of all GenOn Notes Claims into the New Common Stock, payment in cash at an approximately 94% recovery on account of the GAG Notes Claims, the reinstatement or unimpairment of all General Unsecured Claims, and the issuance of the New Senior Secured Notes and/or New Exit Credit Facility Term Loans to fund distributions under the Plan. This structure will allow the Debtors to reduce its funded debt by at least $1.75 billion." BankruptcyData's Plan Summary continues, "The Valuation Analysis estimates the Total Enterprise Value of the Reorganized Debtors to be approximately $1,380 million to $1,680 million, with a midpoint of $1,530 million as of an assumed Effective Date of December 31, 2017." BankruptcyData premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to GenOn Energy's June 14, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
Global A&T Electronics (GATE) and 12 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-23931. The Company, which provides semiconductor assembly and test services, is represented by Marc Kieselstein of Kirkland & Ellis. GATE is a wholly-owned subsidiary of UTAC Holdings, which is not included in the bankruptcy proceedings. Concurrent with its Chapter 11 petition, Global A&T Electronics also filed with the Court a Joint Chapter 11 Plan of Reorganization (with Technical Modifications) and related Disclosure Statement. A corporate release notes that the Plan has already obtained acceptances from more than 99% of holders of the Company's 10% Senior Secured Notes due in 2019 issued in February 2013 and more than 99% of holders of the Company's 10% Senior Secured Notes due in 2019 issued in November 2013. According to the Disclosure Statement, "The Plan provides for a comprehensive restructuring of the Debtors' obligations, preserves the going-concern value of the Debtors' business, maximizes recoveries available to all constituents, provides for an equitable distribution to the Debtors' stakeholders, and protects the jobs of more than 10,000 employees. More specifically, and as described in greater detail in the Disclosure Statement, the Plan provides for, among other things, the issuance of approximately $665 million in new 8.5% secured notes due 2022 to holders of GATE's Initial Notes (i.e., 'Old' Notes) and Additional Notes (i.e., "New" Notes), the guarantee by the "UMS" business held by GATE's equity owner, UTAC Holdings Ltd., of such new secured notes, the issuance of approximately 31 percent of the common equity in UTAC Holdings Ltd. to GATE's "New" bondholders, the settlement of long-standing litigation against the Debtors and their equity sponsors, and, following the effective date, UMS and GATE will be operated by a single management team and owned by UTAC Holdings Ltd."
Elliott Associates, Elliott International, The Liverpool Limited Partnership, Paloma Partners Management Company and Sunrise Partners Limited Partnership filed with the U.S. Bankruptcy Court a motion seeking entry of an appended order of appointment, pursuant to 11 U.S.C. Section 105(a), appointing a representative to the fee committee in place of the seat currently occupied by a representative of the official committee of unsecured creditors (UCC). The motion explains, "The Majority Creditors seek the Court's approval of their substitution onto the Fee Committee for the existing seat held by the UCC, which endorses that appointment. The Majority Creditors hold approximately 75% of the remaining unsecured E-Side debt. Every dollar spent (or saved) by the estate at this juncture directly affects approximately 75 cents of their recovery. They are uniquely motivated to contribute to the Committee's work and to provide perspective as those most affected by its success (or failure). Obtaining information about the Committee's process, work product and results has proven difficult. The Committee has been reluctant to disclose any of its means or methods, and has refused to state whether specific types of work product exist or might be disclosed. The Majority Creditors have not been given access to raw data, such as the Committee's fee database, or to any analysis or compilation of budgets, anticipated advisor spend or involvement through case closure….The Committee's charter envisions participation and voting rights of the estate's major constituencies: the debtor, its creditors, the UCC and an independent member to oversee the process. Ostensibly this was to ensure both transparency and implied governance over the expenditure of estate resources. This structure began to fall apart in late 2016 when the original T-Side unsecured creditors' committee effectively went dormant following confirmation of the TXU plan. The E-Side UCC nominally stepped into those shoes, perhaps informally as there was never any order of transition (which the Committee appears to have resisted for reasons unknown)." The Court scheduled a January 8, 2018 hearing to consider the motion, with objections due by December 29, 2017.
Armstrong Energy filed with the U.S. Bankruptcy Court a Disclosure Statement for the Company's First Amended Joint Chapter 11 Plan of Reorganization. The Disclosure Statement notes, "Pursuant to the Plan, the Debtors, Post-Effective Date Debtor, or Plan Administrator shall pay or provide for payments of Claims as follows: The Plan Administrator shall establish each of the Distribution Reserve Accounts, which shall be used to make distributions in Cash to Holders of Allowed Claims pursuant to the terms of the Plan….Holders of Senior Notes Secured Claims will receive equity interests in HoldCo in satisfaction of $90 million of their Secured Claims and will receive their pro rata share of the remaining collateral securing their claims, which the Debtors anticipate will primarily be Cash on hand….MAEVA believes the value achieved by the successful consummation of the Sale Transaction and as provided under the Plan is a reasonable measure of the Debtors' value in light of, among other things, (1) the robust and exhaustive nature of the marketing process, both pre and postpetition, and (2) the active bidding that took place during the marketing process."