Ultra Petroleum Chapter 11 exit plan approved by court

|About: Ultra Petroleum Corp. (UPL)|By:, SA News Editor

Ultra Petroleum (OTCPK:UPLMQ) wins approval of a bankruptcy exit plan that converts $1.3B in debt and common stock to equity in the reorganized business.

The plan provides for UPL to raise $580M in equity capital through a rights offering plus another $2.4B in exit financing.

Creditors of the UPL’s operating subsidiary, owed ~$2.5B, will receive new notes and cash under the plan, while existing shareholders will receive a 41% stake in the restructured company, subject to dilution.

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