Quicksilver submits plan of liquidation; disclosure hearing June 28

By Caroline Salls

Pittsburgh, May 19 – Quicksilver Resources Inc. filed its plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

According to an 8-K filed with the Securities and Exchange Commission, the plan calls for the appointment of a liquidation trustee and for the transfer of substantially all of the Quicksilver debtors’ remaining assets to a liquidating trust.

The trustee will administer the plan, and the trust and will serve as a representative of the Quicksilver estates for the purpose of liquidating causes of action.

Treatment of creditors will include the following:

• First-lien claims and other priority claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, including interest, or receive the collateral securing the claims;

• Holders of second-lien secured claims will receive a share of specified cash on hand as of the plan effective date, 100% of the first $2.5 million of recoveries from Canadian sale proceeds, 50% of Canadian proceeds recoveries in excess of $2.5 million up to $17.5 million in total recoveries from the Canadian proceeds and liquidation trust interests;

• Holders of general unsecured claims will receive a share of $17.5 million in cash, plus 50% of recoveries from the Canadian proceeds in excess of $2.5 million up to $17.5 million of those recoveries; and

• Holders of interests and 510 claims will receive no distribution.

The disclosure statement hearing is scheduled for June 28, and the plan confirmation will be held on Aug. 15.

Quicksilver, based in Fort Worth, is an independent oil and gas exploration and production company. The company filed for bankruptcy March 17, 2015 under Chapter 11 case number 15-10585.

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