Cypress Environmental gets confirmation of pre-pack Chapter 11 plan

By Sarah Lizee

Olympia, Wash., June 22 – Cypress Environmental Partners, LP received confirmation of its amended pre-packaged Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, last month the company amended the plan so that general unsecured creditors will receive a pro rata share of cash from a $250,000 pool on the effective date of the plan. Previously, these creditors would not have received any recovery.

As before, the plan contemplates a debt-to-equity recapitalization transaction, whereby Argonaut Private Equity, a private equity firm and the sole senior secured lender of the company, will receive 100% of the new equity interests of the reorganized company in exchange for extinguishing the debt to Argonaut remaining under the company’s credit agreement.

Holders of other priority claims will receive payment in full in cash or other treatment leaving the claims unimpaired.

Holders of other secured claims will receive payment in full in cash, the collateral securing their claims or other treatment leaving the claims unimpaired.

Holders of trade claims will receive reinstatement of their claims or payment in full in cash.

Intercompany claims and intercompany interests will be reinstated or released with no distribution.

Interests will be canceled with no distribution.

Section 510(b) claims will be discharged with no distribution to holders.

Tulsa, Okla.-based Cypress Environmental Partners provides environmental services to the utility and energy industries. The company filed bankruptcy on May 8 under Chapter 11 case number 22-90039.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.