Ultra Petroleum Corp. Announces Favorable Opinion for Company on Make-Whole Litigation Appeal
“We are very pleased with the Fifth Circuit’s decisive opinion reversing and remanding the prior judgment against
After the Company and its subsidiaries petitioned for reorganization under Chapter 11 in 2016, certain creditors asserted that they were entitled not just to principal and pre-petition interest on certain debt instruments, but also to a contractual “make-whole” premium and post-petition interest at a contractually defined rate. On appeal, the Fifth Circuit reversed the bankruptcy court’s decision and remanded for further proceedings. The Fifth Circuit rejected the bankruptcy court’s determination that the creditors had been impaired merely by operation of the Bankruptcy Code, holding instead that creditors are impaired only if a reorganization plan itself alters legal, equitable, or contractual rights. The Fifth Circuit expressed “doubt” that the creditors are entitled to payment of the make-whole and indicated that the creditors’ claim for the make-whole premium would be disallowed under the Bankruptcy Code. Finally, the Fifth Circuit indicated that post-petition interest should be determined according to the statutory federal judgment rate, rather than at a higher contractual rate.
Additional information on the Company is available at www.ultrapetroleum.com. In addition, our filings with the
This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements relating to the make-whole premium, post-petition interest claims, and the ultimate outcome of the make-whole litigation on remand to the bankruptcy court. Any statement, including any opinions, forecasts, projections or other statements, other than statements of historical fact, are or may be forward-looking statements. Although the Company believes the expectations reflected in any forward-looking statements herein are reasonable, we can give no assurance that such expectations will prove to have been correct and actual results may differ materially from those projected or reflected in such statements. In addition, certain risks and uncertainties inherent in our business as well as risks and uncertainties related to our operational and financial results are set forth in our filings with the
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303-708-9740, ext. 9898