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USEC Plan Effective
USEC's Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection under the name Centrus Energy. The Court confirmed the Plan on September 5, 2014. The Company's stock is expected to begin trading on the NYSE on September 30, 2014 under the ticker symbol LEU. USEC did not require external exit financing upon emergence. John Welch, president and chief executive officer of Centrus Energy, comments, "We have dramatically improved our capital structure by replacing $530 million in debt due this October and $114 million in preferred stock with new debt and new common stock. During this time, we met all of our customers' needs on schedule as we have always done and achieved important performance objectives with our advanced uranium enrichment technology." A new board of directors consisting of up to 11 directors will provide governance and strategic direction for Centrus Energy. Five members of the previous USEC board, including one member appointed by Toshiba America Nuclear Energy, and five newly-appointed directors under the confirmed and effective will comprise the new board. One seat on the board remains vacant, which may be filled by a person appointed by Babcock & Wilcox (B&W). Under the Plan, Centrus Energy will issue 9 million shares of new common stock on September 30, 2014 and will also issue new debt totaling $240.4 million that matures in five years. Subject to certain conditions, the debt can be extended an additional five years. Noteholders will receive $200 million of the new debt and approximately 79 % of the new common stock. The two preferred shareholder investors, Toshiba and B&W, will each receive $20.19 million of new debt and approximately 8% of the new common stock. Current common stockholders will receive approximately 5% of the new common stock in exchange for existing common stock. Distribution of the new common stock is subject to dilution on account of a new management incentive plan and will be made to holders of record as of September 29, 2014. Under the terms of the Plan, all previously-existing securities of USEC will be cancelled prior to the opening of trading on September 30, 2014. Current stockholders do not need to take any action to receive their shares of new common stock LEU as the new equity will be distributed electronically by Computershare, the Company's transfer agent, or through the Depository Trust Corp. The exchange ratio is approximately 0.0917, which means 1000 shares of USU will be exchanged for approximately 92 shares of LEU. This enriched uranium fuel supplier filed for Chapter 11 protection on March 5, 2014, listing $2.2 billion in pre-petition assets.
NII Holdings Committee Appointed
The U.S. Trustee assigned to the NII Holdings case appointed an official committee of unsecured creditors. The following members will serve on the committee: Peter Finkel of Wilmington Trust, National Association, David Daigle of Capital Research and Management, Dan Gropper of Aurelius Investment, Patrick Healy of Wilmington Savings Fund Society and Susanne M. Kandel of American Tower do Brasil-Cessao de Infraestructuras.
Triad Guaranty Extension Sought
Triad Guaranty filed with the U.S. Bankruptcy Court a third motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including December 3, 2014, and February 3, 2015, respectively. The motion explains, "The Debtor, is hopeful that the brief extensions requested herein - the final extensions available to the Debtor under Bankruptcy Code section 1121(d)(2) - will afford it an opportunity to develop a plan process following adjudication of the Adversary Proceeding, without the risk of the substantial additional costs and disruption that could follow an expiration of either of the Exclusive Periods at this critical point. Granting the relief requested will advance the estate's interest in working towards a successful resolution of this case....If the Exclusive Periods were to expire at this point, the risk is that the careful balancing fostered by exclusivity would vanish, potentially undercutting the Debtor's ability to lead an organized and cost-effective plan process....In this case, such an exercise would almost certainly compromise recoveries to the Debtor's creditors and stakeholders, and may significantly delay (if not altogether frustrate) the Debtor's ability to confirm any plan in this bankruptcy case....It is in the best interests of the Debtor, its estate, and all creditors and stakeholders to obtain an extension of the Exclusive Periods to ensure that the Debtor is afforded a reasonable and sufficient time to resolve the litigation regarding its rights with respect to the tax attributes and solicit, confirm, and consummate a plan without the costly and counter-productive prospect of a competing plan." The Court scheduled an October 23, 2014 hearing to consider the motion and interested parties must file objections by October 10, 2014.
Buccaneer Energy Limited Extension Sought
Buccaneer Energy Limited filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including October 28, 2014 and December 27, 2014, respectively. The motion explains, "The Debtors' 120-day exclusive period for filing a chapter 11 plan expires on September 28, 2014. As the Court is aware, for the last several months, the Settling Parties have engaged in extensive settlement discussions, which have recently resulted in the Court-approved settlement (the 'Settlement') - an accord that will ultimately assist in the resolution of these chapter 11 cases. As soon as the Settlement was reached in principle, the Debtors engaged in extensive discussions with the other Settling Parties with respect to formulating a modified plan that incorporates the terms of the Settlement. While significant progress has been made towards a consensual chapter 11 plan, the Debtors submit that a brief extension of the exclusivity period is necessary in order for them to broker a path to maximize value for all of their stakeholders without the disruption that is likely to be caused by the filing of competing plans by non-debtor parties." The Court scheduled an October 21, 2014 hearing to consider the motion.
Revel AC Ombudsman Replaced
The U.S. Trustee assigned to the Revel AC case filed with the U.S. Bankruptcy Court a notice of order vacating the previous appointment of a consumer privacy ombudsman. The notice states, "On this 23rd day of September, 2014 notice is hereby entered vacating the appointment of Luis Salazar, Esq., as the Consumer Privacy Ombudsman in the above-referenced matter based on his disclosure of a conflict and resulting resignation." The Trustee subsequently announced Salazar's replacement: "Roberta A. DeAngelis, United States Trustee...hereby appoints Bonnie Glantz Fatell...as the Successor Consumer Privacy Ombudsman in these cases as a result of the September 15, 2014, resignation of Luis Salazar, Esquire as the Consumer Privacy Ombudsman." The appointment is according to an Order directing the appointment of a consumer privacy ombudsman, entered on August 8, 2014, by the United States Trustee."