Chapter 11 debtor Furie Operating Alaska LLC has filed an amended bankruptcy plan which includes a $5 million sale of the equity in Furie and related companies - Cornucopia Oil & Gas Company LLC and Corsair Oil & Gas LLC - to Anchorage-based Hex LLC.
The plan - filed April 20 in the U.S. Bankruptcy Court for the District of Delaware - references a term sheet between the debtors, lenders and the acquirer dated April 14.
In addition to $5 million in cash, a $15 million debtor in possession refinancing loan will be issued, secured by a second priority lien behind ING Capital LLC on the State of Alaska tax credit priority collateral and a second priority lien on all of the assets or property of the reorganized debtors behind a first lien to Alaska Industrial Development and Export Authority debt not to exceed $7.5 million in principal amount plus an additional $5.0 million in additional advances.
The first source of repayment for the DIP loan is State of Alaska tax credits already earned but unpaid to date.
Prepetition term loan lenders will receive shares of a $21 million new term loan issued by reorganized Cornucopia secured by a third priority lien on the tax credit priority collateral.
Proceeds from the state tax credits are to be applied first to repay a new $60 million tax credit loan to ING until repaid in full; second, to repay the $15 million DIP replacement loan until repaid in full; third, to repay the $21 million new term loans, split 75% to the holders of the new term loans and 25% to the acquirer for every dollar; and fourth, the remainder, if any, to the acquirer.
An existing gas sales agreement with Alaska Pipeline Co. will be assumed by the "applicable reorganized debtor(s)."
- STEVE SUTHERLIN
See full story in April 26 issue, available online Friday, April 24 at www.PetroleumNews.com
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