Alpine Summit’s plan exculpation provisions too broad, trustee says

By Sarah Lizee

Olympia, Wash., Feb. 16 – Alpine Summit Energy Partners, Inc.’s Chapter 11 plan of liquidation drew an objection from Region 7 U.S. trustee Kevin M. Epstein, according to documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Epstein said he objects to the plan because it seeks broad exculpation coverage for the chief restructuring officer, the deputy chief restructuring officer, the debtor-in-possession lender, the prepetition lender, and other parties in direct violation of Fifth Circuit law.

The company also seeks to further exculpate a lienholder trustee who has not been identified or appointed yet, the U.S. trustee added.

Epstein said the plan also fails to address the payment of statutory fees and contains a gatekeeping provision that binds creditors who elect to opt out of the third-party releases.

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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