Aegean Marine Petroleum Network Inc. (Aegean) and Mercuria Energy Group Limited (Mercuria) have reached an agreement with the committee of creditors to implement a revised Restructuring Support Agreement (RSA), show legal documents submitted on 15 December, 2018.
Mercuria’s initial DIP financing scheme submitted on 6 November was bettered by an alternative proposal from Oaktree Capital Management, L.P. and Hartree Partners, L.P. which gained more than 50% support from Aegean’s stakeholders on 13 December.
“Meanwhile, [on 14 December] Mercuria submitted an improved proposal that delivers even greater value than the Initial Mercuria Proposal and the Oaktree / Hartree Proposal,” said Aegean legal documents.
“The Debtors and the Committee further engaged Mercuria in connection therewith.
“These negotiations culminated in the overnight negotiation and documentation of the RSA, which the Debtors believe to the best available option for providing their estates with the necessary liquidity to fund these chapter 11 cases, maximizing creditor recoveries, and positioning the Debtors for long-term success.”
The principal terms of the new RSA can be summarised as follows:
“In short, the RSA enables the parties to avoid months of highly contentious, potentially value destructive litigation in favor of global peace,” explains Aegean.
“The RSA contemplates mutual releases and exculpations with appropriate carve outs for the Litigation Claims to be transferred to the Litigation Trust.
“The Debtors believe that the RSA and related DIP financing provide the best available path forward for these chapter 11 cases and to maximize the value of their estates.
“For these reasons, the Debtors respectfully submit that entry into, and performance under, the RSA reflects a sound exercise of business judgment and should be approved.”
The Mercuria RSA is scheduled for approval by the United States Bankruptcy Court for the Southern District of New York on 14 January 2019.
A timeline organised list of events preceding the current development have been recorded by Manifold Times below:
Related: Aegean Chapter 11: NYSE delisting scheduled for December 3
Related: Aegean Chapter 11: U.S. Bankruptcy Court grants first day motions
Related: Aegean Chapter 11: Official committee of unsecured creditors appointed
Related: Aegean Chapter 11: Plan for 120-day sale process submitted to court
Related: Aegean Chapter 11: Bondholders object Mercuria’s $532 million DIP Facility
Related: Aegean Chapter 11: Creditor list shows exposure of 30 parties
Related: Aegean files for Chapter 11, Mercuria to be ‘stalking horse bidder’
Related: Aegean auditors alleges up to $300 million ‘misappropriated’
Related: Aegean: Forensic auditors target investigations on four companies
Related: President of Aegean to leave, effective November 15
Related: Rumours: Alleged changes at Aegean’s management
Related: Mercuria starts ‘sole lender’ arrangement with Aegean
Related: Aegean establishes new management committee
Related: Mercuria bails Aegean out with $1 billion credit
Related: Ocean Intelligence comments on Aegean credit downgrade
Related: Aegean shares down 71%, to face legal investigations
Related: Aegean audit uncovers $200 million account discrepancy
Related: Aegean unfolds several business developments
Related: Aegean drops founder, elects new board members
Related: Aegean requests for ‘additional time’ to file annual report
Related: Aegean welcomes new Chief Financial Officer
Related: Lawsuit filed against Aegean’s H.E.C. acquisition
Related: Aegean to offer ‘one-stop-shop solution’ with H.E.C. acquisition
Related: Aegean in $367 million acquisition of port reception facilities services group
Related: Aegean shareholders ‘gravely concerned’ over board’s silence
Related: Shareholders nominate ‘highly qualified’ candidates to Aegean board
Related: Aegean Marine Petroleum Network under shareholder pressure
Published: 17 December, 2018
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