On January 12, 2021, firm client Ursa Piceance Holdings, and certain subsidiaries, went effective with its confirmed Chapter 11 plan in Delaware bankruptcy court. Ursa’s plan included the ability to both equitize debt and sell assets and, after a litany of favorable rulings and a robust marketing process, Ursa elected to sell its Colorado oil and gas properties to Terra Energy Partners. Meanwhile, Ursa’s lender group committed to convert the group’s debt to equity as a backstop to the sale. After a prompt closing and court approvals, Ursa successfully confirmed its Chapter 11 plan on a cramdown basis over objections by the unsecured creditors of three of Ursa’s debtor affiliates. Along the way, Ursa consensually rejected certain contracts and resolved issues surrounding its long-term inter-state pipeline agreements.
The Sidley team included Duston McFaul, Maegan Quejada, Jim Rice, Dan Allison, Hannah Rozow, Quan Lu, and Zack Pullin (Houston); David Kronenberg (Washington, D.C.); Tom Labuda, Allison Stromberg, and William Bruce (Chicago); Rob Velevis, Juliana Hoffman, Jeri Miller, and John Brannan (Dallas); and Anna Gumport and paralegal D.J. Lutes (Los Angeles).
