Alpine Summit gets conditional approval of disclosure statement

By Sarah Lizee

Olympia, Wash., Jan. 11 – Alpine Summit Energy Partners, Inc. received conditional approval of the disclosure statement for its Chapter 11 plan of liquidation, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The combined hearing on final approval of the disclosure statement and confirmation of the Chapter 11 plan is scheduled for Feb. 5.

Under the plan, other priority claims, senior other secured claims and title/trust claims are expected to be paid in full.

Prepetition credit agreement claims are subject to a challenge. Following a resolution of the challenge by a final order, holders of these claims will receive, to the extent allowed and not subordinated under the challenge, cash from lienholder trust assets in line with a waterfall until the claims are paid in full. Any deficiency claim will be treated as a general unsecured claim.

Holders of statutory lien claims will receive cash from the lienholder trust assets in line with the waterfall until paid in full.

Holders of general unsecured claims will receive their pro rata share of GUC trust assets under a waterfall.

Section 510(b) claims, intercompany claims, intercompany interests and parent interests will be canceled with no recovery.

As previously reported, the official committee of unsecured creditors objected to the disclosure statement, saying it does not adequately describe the significant value associated with the claims against insiders that the debtors seek to extinguish, nor the effect of the two-trust scheme.

Nashville-based Alpine Summit Energy Partners develops, owns and operates oil and gas properties in several formations in Texas. The company filed bankruptcy on July 5, 2023 under Chapter 11 case number 23-90739.

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