Oil and gas producer Midstates Petroleum Corp. received a bankruptcy judge’s permission Thursday to begin polling creditors on its bankruptcy-exit plan, a plan based on a support agreement negotiated prior to the company’s bankruptcy filing, the Wall Street Journal reported today. The permission from Bankruptcy Judge David Jones came over the objection of the committee of unsecured creditors, which argued that the plan is “patently unconfirmable” and shouldn’t go to a vote. Although Judge Jones overruled the objection, he made clear that the committee could make the arguments again when he considers whether to confirm the plan. The permission yesterday approves Midstates’ disclosure statement. The oil and gas producer filed for bankruptcy in May with a plan to reduce its debt by 90 percent by handing more than 96 percent ownership of the company to junior bondholders owed $625 million, in exchange for forgiveness of that debt. That group of junior bondholders will also be entitled to as much as $60 million in cash. Lenders of its $249.2 million senior revolving facility are being paid $82 million in cash and have agreed to provide a $170 million exit facility to Midstates. Read more. (Subscription required.)
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