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Green Field Energy Services Notice of Cancellation Filed
Green Field Energy Services filed with the U.S. Bankruptcy Court a notice stating that no other qualified bids were received by the March 5, 2014 bid deadline. As a result, and pursuant to the Court-approved bid procedures, the previously-scheduled auction for the sale of certain assets of the Debtors has been cancelled. The Company named Gordon Brothers Commercial and Industrial (GBCI) as successful stalking horse bidder. Pursuant to the bid procedures order, the Debtors intend to present GBCI's agency agreement as the successful bid at the sale hearing currently scheduled for March 11, 2014. As previously reported, "The guaranteed amount is $50 million, subject to certain adjustments; and bid protections include a breakup fee of $1 million and expense reimbursement which shall not exceed $250,000."
Cengage Learning Settlement Approval Sought
Cengage Learning filed with the U.S. Bankruptcy Court a motion for entry of an order, pursuant to Federal Rule of Bankruptcy Procedure 9019, approving a global settlement among the Debtors and supporting parties. The motion explains, "The Global Settlement provides for, among other things, distribution to unsecured creditors in an aggregate amount of $225 million in cash or new equity, of which the value will be based on a Total Enterprise Value of $3.6 billion - a notable increase from the Debtors' initial expected distribution to unsecured creditors of $72.5 million. Originally, the proposed distributions to the unsecured creditors in the November Plan were uncertain, contingent, and subject to the resolution of complex legal and factual disputes that would not have been considered resolved until after the effective date of the November Plan. Thus, the Global Settlement avoids significant risk, delay and uncertainty and provides the unsecured creditors with higher and better recoveries than those proposed under the November Plan. In addition, all pending adversary proceedings and related discovery were stayed upon the execution of the Plan Support Agreement and will be dismissed with prejudice upon the Effective Date of the Plan." The Court scheduled a March 13, 2014 hearing on the agreement with objections due by March 10, 2014.
Edison Mission Energy Board Notice, Plan Supplement Amendment Filed
Edison Mission Energy (EME) filed with the U.S. Bankruptcy Court a notice of filing of members of the Company's post-emergence board of directors, reorganization trust oversight board and Section 1129(a)(5) of the Bankruptcy Code disclosures. According to the notice, post-reorganization EME's directors will be Steven Eisenberg, Oded Rhone and Norm Geurts; and officers for post-reorganization EME will be president and treasurer Steven Eisenberg, chief financial officer, assistant treasurer and assistant secretary Oded Rhone and secretary and assistant treasurer Norm Geurts. The reorganization trust oversight board will consist of five members: three appointed by the supporting noteholders and committee and two appointed by EME's existing independent directors. The five members of the reorganization trust oversight board will be as follows: Frederic "Jake" Brace, Timothy J. Bernlohr, Kurt M. Cellar, Eugene Davis and Hugh Sawyer. The notice supplements EME's Third Amended Joint Chapter 11 Plan of Reorganization. The Company explains, "Amended Exhibit A to the Plan Supplement is integral to and part of the Plan and shall be approved if the Plan is confirmed."
USEC Chapter 11 Petition, Plan Filed
USEC filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 14-10475. The Company, which provides low-enriched uranium, is represented by D.J. Baker of Latham & Watkins and Mark D. Collins of Richards, Layton & Finger. According to documents filed with the Court, USEC commenced this bankruptcy with the support of holders of more than 65% in principal amount of its convertible note debt as well as two holders - Babcock and Wilcox Investment and Toshiba America Nuclear Energy - of its preferred stock interest. Concurrent with the petition, the Company also filed a Prepackaged Plan of Reorganization and related Disclosure Statement. USEC explains, "Through the Plan, the Debtor is attempting to implement a financial restructuring designed to reduce its outstanding indebtedness and strengthen its balance sheet, thereby enabling it to emerge from Chapter 11 on a financial footing that is expected to improve its prospects for later achieving certain strategic initiatives that are essential to its long-term viability. The proposed restructuring is focused on (a) convertible note debt maturing in October 2014, in the principal amount of $530 million, (b) preferred stock obligations of approximately $113.9 million, and (c) common stock holdings. The Debtor's priority, secured and general unsecured obligations are not impaired by the restructuring." Explaining the causes of this Chapter 11 filing, USEC states, "...the Company's business is in a state of significant transition as it moves from the gaseous diffusion technology employed for more than 60 years to a modern, cost-effective gas centrifuge technology. Managing this transition has been made more challenging by current enrichment market conditions." USEC's most recent Annual Report cites total assets of $2.27 billion; however, the Chapter 11 petition asset figure is just $70 million.
Sorenson Communications Hearing Dates Approved
The U.S. Bankruptcy Court issued an order scheduling a combined Disclosure Statement approval and Plan confirmation hearing, (B) establishing a Plan and Disclosure Statement objection deadline and related procedures, (c) approving solicitation procedures, (d) approving confirmation hearing notice and (e) directing that a 341-Meeting of Creditors not be convened. The Court scheduled an April 10, 2014 hearing to consider both the Plan and Disclosure Statement.