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Global Geophysical Services LLC won court approval for its reorganization plan less than two months after the company filed for bankruptcy protection, the Wall Street Journal reported today. Bankruptcy Judge David R. Jones signed off on the plan on Monday. Global Geophysical, a seismic-data provider for the oil industry, sought chapter 11 protection on Aug. 3, blaming the stubbornly low oil prices that affected many of its peers. As part of the bankruptcy plan, Global Geophysical will be split into two entities — the most valuable assets, including a seismic data library and real property, will be controlled by the first-lien lenders and turned into a new company. The remaining assets will be liquidated, and about 33 percent of the proceeds will be used to pay unsecured creditors and junior lenders. Court papers show the liquidation will yield up to $3.75 million.

Tucson, Ariz.-based artificial heart maker SynCardia Systems will seek final approval of a bankruptcy sale of its assets to a proposed buyer on Friday, after no competing bids emerged, the Arizona Daily Star reported today. Approval of the asset sale would pave the way for SynCardia’s emergence from chapter 11 reorganization. SynCardia filed for chapter 11 on July 1 in Delaware, proposing to sell all of its assets to its senior secured creditor in an effort to save the company. Sindex SSI Lending LLC, an affiliate of Philadelphia-based Versa Capital, purchased about $22 million worth of SynCardia’s senior debt at a steep discount in June. Sindex bid $19 million of that debt in a credit bid for SynCardia, plus $150,000 in cash, to buy the company. U.S. Bankruptcy Judge Mary F. Walrath will now consider final approval of the sale to Sindex on Friday.

U.S. coal miner Arch Coal has agreed to set aside collateral to cover future mine cleanup costs as part of its bankruptcy reorganization plan, according to a court filing, ending its controversial use of "self-bonds,” Reuters reported yesterday. For decades the largest U.S. coal companies have used a federal subsidy known as "self-bonding," which exempts companies from posting bonds or other securities to cover the cost of returning mined land to its natural state, as required by law. Arch had $485.5 million in self-bonds in Wyoming when it filed for bankruptcy protection in January, saddled with $6 billion of debt and a deep slump in the coal sector. Under a reorganization plan set for a confirmation trial today in U.S. Bankruptcy Court in St. Louis, Arch must replace all of its self-bonds within 15 days of its bankruptcy exit plan becoming effective, a court filing by the company showed on Sunday.

SandRidge Energy Inc. won court approval for a plan to exit bankruptcy on Friday, overcoming opposition from shareholders who had accused the oil and gas producer of misrepresenting its value, Reuters reported. Bankruptcy Judge David Jones said that he read every letter he received from individual shareholders, some of whom lost their entire savings, when SandRidge filed a prepackaged bankruptcy in May with $4.4 billion of debt. Judge Jones said he understood the pain that comes with losing an investment but was also aware that the reorganization plan was not to blame for the lost equity. "Equity was lost long ago," he said. Even though it is normal for shareholders to lose their investment during a bankruptcy, SandRidge's shareholders were hoping to prove its assets were valuable enough so they would recoup some money after repaying creditors. SandRidge said that it hoped to emerge from bankruptcy within the next month, eliminating $3.7 billion in pre-petition debt. Read more.

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Chief Bankruptcy Judge Jeffery Deller yesterday approved a reorganization plan that will allow the amusement park Conneaut Lake Park to continue operating while it pays nearly $3.5 million in debts, GoErie.com reported yesterday. The mediated plan filed jointly by park trustees and creditors in July will allow the park to sell property and make quarterly payments from operating revenues to pay debts. A majority of park creditors approved the plan in August balloting. Conneaut School District, Crawford County and Sadsbury and Summit (Pa.) townships each voted to accept the repayment plan. The local taxing authorities are owed more than $1.3 million in delinquent park property taxes. Approval by a majority of creditors and repayment plan feasibility were factors in the plan's confirmation, said Judge Deller.

Pacific Sunwear of California Inc. won court approval to exit bankruptcy after cutting debt, closing some stores and pressuring landlords to reduce rent at the malls where the teen-clothing chain does business, Bloomberg News reported yesterday. Under the reorganization plan approved yesterday by Bankruptcy Judge Laurie Selber Silverstein, PacSun will give all its stock to affiliates of private equity firm Golden Gate Capital, its senior lender. In exchange, Golden Gate will reduce the amount it’s owed by PacSun to about $30 million initially from $88 million, Gary Schoenfeld, the retailer’s chief executive officer, said in an interview. Golden Gate has also agreed to invest $20 million in the company, most likely in form of new debt, he said. Read more. 

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