Copeland, Cook, Taylor & Bush attorneys have advised Tenrgys, LLC and thirty-three of its affiliates in their successful financial restructuring after the Ridgeland, Mississippi based oil-and-gas producer filed for chapter 11 protection in the United States Bankruptcy Court for the Southern District of Mississippi in September 2021. The companies officially emerged from bankruptcy on March 18, 2022.
The companies’ consensual chapter 11 plan, which the bankruptcy court confirmed on March 4, 2022, reduced the principal amount of the companies’ funded debt from $129 million to approximately $47.5 million at emergence, and provided funding for the companies’ immediate working capital needs and for exploration and development of their international prospects. Creditors under the companies’ prepetition revolving and term loans received combinations of cash, takeback debt, and equity interests in two of the reorganized companies, while trade-creditor claims were fully paid in cash at emergence. The plan was unanimously approved by all classes of creditors and equity holders.