Confirmation hearing set for sale of Furie Cook Inlet assets
A confirmation hearing for the Furie Alaska Operating LLC second amended joint plan of reorganization in its Chapter 11 bankruptcy case has been set for June 11 at 11 a.m. prevailing Eastern Time, before Judge Laurie Selber Silverstein in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The notice of the hearing was filed with the court on May 12.
The amended reorganization plan - filed April 20 - references a term sheet dated April 14 between the debtors, lenders and the acquirer for a sale of the equity in the debtor companies. The assets include the offshore Cook Inlet Kitchen Lights unit, an offshore natural gas production platform, pipelines and facilities.
The deadline for voting on the plan, by eligible holders of claims, is June 5 at 4 p.m. prevailing Eastern Time. The holders of prepetition tax credit claims and prepetition term loan claims are eligible to vote, according to the notice.
The deadline for filing objections to the plan is June 5, 2020, at 4 p.m. prevailing Eastern Time.
The debtors must file the plan supplement, other than the contract assumption schedule, no later than seven days prior to the voting deadline.
Selber Silverstein signed an order May 8 approving the disclosure statement; establishing the voting record date, voting deadline and other related dates; approving procedures for soliciting, receiving, and tabulating votes on the plan and for filing objections to the plan and the rejection or assumption, as applicable, of executory contracts and unexpired leases under the plan; approving the manner and forms of notice and other related documents; and granting related relief.
Furie plans sale to Alaska-based company
Chapter 11 debtor Furie Operating Alaska LLC and related debtor companies — Cornucopia Oil & Gas Company LLC and Corsair Oil & Gas LLC — have agreed to a plan for an asset sale to Anchorage-based Hex LLC under the amended bankruptcy plan.
Hex is to pay $5 million in cash. A $15 million debtor in possession, or DIP, refinancing loan will be issued, secured by a second priority lien behind ING Capital LLC on the state of Alaska tax credit priority collateral, also secured by 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 million in 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 the reorganized Cornucopia Oil and Gas, 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.