Attached files
file | filename |
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8-K - FORM 8-K - TRICO MARINE SERVICES INC | h83931be8vk.htm |
EX-2.1 - EX-2.1 - TRICO MARINE SERVICES INC | h83931bexv2w1.htm |
EX-99.2 - EX-99.2 - TRICO MARINE SERVICES INC | h83931bexv99w2.htm |
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
FOR THE DISTRICT OF DELAWARE
§ | Chapter 11 | |||
§ | ||||
In re:
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§ | |||
§ | Case No. 10-12653 | |||
TRICO MARINE SERVICES, INC., et al.,
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§ | |||
§ | ||||
Debtors.1
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§ | (Jointly Administered) | ||
ORDER CONFIRMING DEBTORS SECOND AMENDED JOINT PLAN
OF LIQUIDATION PURSUANT TO CHAPTER 11 OF
THE BANKRUPTCY CODE
OF LIQUIDATION PURSUANT TO CHAPTER 11 OF
THE BANKRUPTCY CODE
Trico Marine Services, Inc. and certain of its affiliates, as debtors and debtors in
possession (collectively, the Debtors) having:2
a. | on August 25, 2010 (the Petition Date), commenced chapter 11 cases (collectively, the Chapter 11 Cases) by filing voluntary petitions for relief under chapter 11 of title 11 of the United States Code, §§ 101 1532 (as amended, the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court); |
b. | continued to operate their businesses and manage their property as debtors in possession pursuant to §§ 1107(a) and 1108 of the Bankruptcy Code; |
c. | filed, on February 25, 2011, the Debtors Joint Plan of Liquidation and the Debtors Disclosure Statement for Debtors Joint Plan of Liquidation [Docket Nos. 975 and 976, respectively], which plan and related documents were subsequently amended from time to time; |
d. | filed, on May 25, 2011, the Debtors Second Amended Joint Plan of Liquidation [Docket No. 1183] (as the same may have been subsequently modified, supplemented and amended, the Plan) and the Debtors Disclosure Statement for Second Amended Joint Plan of Liquidation (the Disclosure Statement) [Docket No. 1297]; |
1 | For purposes of the Plan, the Debtors are: (1) Trico Marine Assets, Inc. (TMA), (2) Trico Marine Operators, Inc. (TMO), (3) Trico Marine International, Inc. (TMI), and (4) TMS. Trico Holdco, LLC (Trico Holdco) and Trico Marine Cayman, LP (TMC) also filed for chapter 11 protection concurrently with the Debtors. However, as described in further detail in Section 4.02 hereof, the Plan does not contemplate the liquidation of Trico Holdco or TMC under the Plan. | |
2 | Unless otherwise noted, capitalized terms not defined in the Order Confirming Debtors Second Amended Joint Plan of Liquidation (the Confirmation Order), shall have the meanings ascribed to them in the Plan (as the same may have been subsequently modified, supplemented and amended, the Plan). The rules of interpretation set forth in Section 1.01 of the Plan shall apply to the Confirmation Order. |
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e. | distributed solicitation materials beginning on or about June 2, 2011, consistent with the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules), and the Order Approving Debtors Motion For Order Motion to Approve Order Under Bankruptcy Code Sections 105, 502, 1125 and 1126, Bankruptcy Rules 2002, 3003, 3017, 3018, 3020 and 9007 and Local Bankruptcy Rule 3017-1 RE: (I) Disclosure Statement; (II) Voting Deadlines; (III) Confirmation Related Dates and Notices; and (IV) Solicitation Procedures [Docket No. 1286] (the Solicitation Procedures Order) entered on May 25, 2011, as evidenced by the Declaration of Mailing of Patrick J. Ryan of Solicitation Materials [Docket No. 1315] (the Epiq Affidavit); |
f. | filed, on June 24, 2011, the Debtors Memorandum In Support of Confirmation of the Debtors Second Amended Joint Plan of Liquidation Dated May 25, 2011 [Docket No. 1356] (the Plan Confirmation Brief); |
g. | filed the various exhibits to the Plan, with each exhibit having been filed as of July 8, 2011; |
h. | filed, on July 13, 2011, the Declaration of Stephenie Kjontvedt on Behalf of Epiq Bankruptcy Solutions, LLC, Regarding Voting and Tabulation of Ballots Accepting and Rejecting the Amended Plan of Liquidation [Docket No. 1420] (the Voting Certification) detailing the results of the Plan voting process; |
i. | filed, on July 16, 2011, the Debtors Omnibus Reply to Objections to Confirmation of the Debtors Second Amended Joint Plan of Liquidation [Docket No. 1434] (the Reply Brief); and |
j. | filed, on July 26, 2011, the Declaration of John R. Castellano in Support of Confirmation of the Debtors Second Amended Joint Plan of Liquidation [Docket No. 1477] (the Castellano Declaration). |
This Court having:
a. | entered the Solicitation Procedures Order on May 25, 2011; |
b. | set July 28, 2011 at 9:00 a.m., prevailing Eastern Time, as the date and time for the commencement of the hearing to consider confirmation of the Plan (the Confirmation Hearing) pursuant to Bankruptcy Rules 3017 and 3018 and §§ 1126, 1128 and 1129 of the Bankruptcy Code; |
c. | reviewed the Plan, Disclosure Statement, the Plan Confirmation Brief, the Reply Brief, the Voting Certification and all filed pleadings, exhibits, statements and comments regarding Confirmation, including all objections, statements and reservations of rights relating thereto; |
d. | heard the statements, arguments and objections made by counsel in respect of Confirmation; |
e. | considered all oral representations, testimony, documents, filings and other evidence regarding Confirmation; |
f. | overruled any and all objections to the Plan and Confirmation thereof and all statements and reservations of rights not consensually resolved or withdrawn, unless otherwise indicated; and |
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g. | taken judicial notice of the papers and pleadings filed in the Chapter 11 Cases. |
NOW, THEREFORE, it appearing to the Bankruptcy Court that notice of the Confirmation Hearing
and the opportunity for any party-in-interest to object to Confirmation have been adequate and
appropriate under the circumstances as to all parties affected or to be affected by the Plan and
the transactions contemplated thereby and no other or further notice is necessary or required, and
the legal and factual bases set forth in the documents filed in support of Confirmation and
presented at the Confirmation Hearing establish just cause for the relief granted herein; and after
due deliberation thereon and good cause appearing therefor, the Bankruptcy Court hereby makes and
issues the following Findings of Fact, Conclusions of Law and Orders:
FINDINGS OF FACT AND CONCLUSIONS OF LAW
A. Jurisdiction; Venue; Core Proceeding.
1. The Bankruptcy Court has jurisdiction over these Chapter 11 Cases pursuant to 28 U.S.C. §
1334. Venue in the Bankruptcy Court was and is proper under 28 U.S.C. §§ 1408 and 1409. Each of
the Debtors was and is an entity eligible for relief under Bankruptcy Code § 109. Confirmation of
the Plan constitutes a core proceeding under 28 U.S.C. § 157(b)(2), and the Bankruptcy Court has
exclusive jurisdiction to determine whether the Plan complies with the applicable provisions of the
Bankruptcy Code and should be confirmed.
B. Commencement and Joint Administration of the Chapter 11 Cases.
2. Beginning on the Petition Date, each of the above-captioned Debtors commenced a case under
chapter 11 of the Bankruptcy Code. By prior order of the Bankruptcy Court, the Chapter 11 Cases
have been consolidated for procedural purposes only and are being jointly administered pursuant to
Bankruptcy Rule 1015. The Debtors have operated their businesses and managed their properties as
debtors in possession pursuant to §§ 1107(a) and 1108 of the Bankruptcy Code. No trustee or
examiner has been appointed in the Chapter 11 Cases.
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C. Appointment of Creditors Committee.
3. On September 8, 2010, the Office of the United States Trustee for the District of Delaware
(the United States Trustee) appointed the Creditors Committee pursuant to § 1102 of the
Bankruptcy Code.
D. Judicial Notice.
4. The Bankruptcy Court takes judicial notice of (and deems admitted into evidence for
Confirmation) the docket of the Chapter 11 Cases and all related adversary proceedings and appeals
maintained by the clerk of the applicable court or its duly appointed agent, including all
pleadings and other documents on file, all orders entered, all hearing transcripts and all evidence
and arguments made, proffered or adduced at the hearings held before the applicable court during
the pendency of the Chapter 11 Cases. Any resolutions of objections to Confirmation explained on
the record at the Confirmation Hearing are hereby incorporated by reference. All unresolved
objections, statements and reservations of rights are expressly overruled on the merits.
E. Burden of Proof.
5. The Debtors, as proponents of the Plan, have met their burden of proving the elements of §§
1129(a) and 1129(b) of the Bankruptcy Code by a preponderance of the evidence, which is the
applicable evidentiary standard for Confirmation.
F. Notice, Solicitation and Acceptance.
6. Solicitation Procedures Order. On May 25, 2011, the Bankruptcy Court entered the
Solicitation Procedures Order, which, among other things: (a) approved the Disclosure Statement as
containing adequate information within the meaning of § 1125 of the Bankruptcy Code and Bankruptcy
Rule 3017, (b) fixed May 23, 2011 as the Voting Record Date (as defined in the Solicitation
Procedures Order), (c) fixed July 8, 2011 as the Voting Deadline for voting to accept or reject the
Plan, (d) fixed July 8, 2011, as the deadline for objecting to the Plan, (e) fixed July 28, 2011 at
9:00 a.m. prevailing Eastern Time as the date and time for the commencement of the Confirmation
Hearing and (f) approved the form and method of notice of the Confirmation Hearing set forth
therein. The Debtors made appropriate minor
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modifications to the Disclosure Statement on the eve of solicitation reflecting the assertion
of certain Claims by Tennenbaum Capital Partners LP. See Notice of Filing of Solicitation Version
of Debtors Second Amended Disclosure Statement [Docket No. 1297].
7. Service of Solicitation Materials and Notices. As evidenced by the Epiq Affidavit,
the record in the Chapter 11 Cases, and the certificates and affidavits of service filed with the
Bankruptcy Court, due, adequate and sufficient notice of the Disclosure Statement, Plan, Plan
Supplement and all exhibits thereto, together with all deadlines for voting on or objecting to the
Plan, has been given to: (a) all Holders of Claims entitled to vote on the Plan, (b) parties that
requested notice in accordance with Bankruptcy Rule 2002, (c) all counterparties to unexpired
leases and executory contracts with the Debtors and (d) all taxing authorities holding Claims
against the Debtors, each in substantial compliance with the Solicitation Procedures Order and
Bankruptcy Rules 2002(b), 3017 and 3020(b). No other or further notice is or shall be required
under the circumstances.
8. Adequate and Sufficient Notice of Confirmation Hearing. In accordance with
Bankruptcy Rules 2002, 3018, 3019, 6004, 6006, 9007 and 9014, and the Solicitation Procedures
Order, adequate and sufficient notice of (a) the time for filing objections to Confirmation of the
Plan and the settlements, compromises, releases, exculpations and other provisions contained
therein and contemplated thereby, (b) the Confirmation Hearing as it may be continued from time to
time and (c) the assumption of executory contracts and unexpired leases set forth in the Assumed
Contract Schedule (as may be supplemented, amended and modified in accordance with the Plan)
(collectively, the Assumed Contracts) and related Cure Amounts was provided to
all Holders of Claims and Interests, counterparties to the Assumed Contracts, counterparties to
contracts being rejected by the Plan, and other parties in interest entitled to receive such notice
under the Bankruptcy Code and the Bankruptcy Rules. No other or further notice of the Confirmation
Hearing or Confirmation of the Plan is necessary or required under the circumstances.
9. Bankruptcy Code § 1125(e) Good Faith Solicitation. Based on the record, the
Debtors, the Creditors Committee, the 8.125% Notes Indenture Trustee, the 3% Unsecured Debentures
Indenture
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Trustee and their respective directors, officers, employees, managers, members, attorneys,
affiliates, agents and professionals (including but not limited to their attorneys, financial
advisors, investment bankers, accountants, solicitation agents and other professionals that have
been retained by such parties) have acted in good faith within the meaning of Bankruptcy Code §
1125(e) and in compliance with the applicable provisions of the Bankruptcy Code, the Bankruptcy
Rules, the Solicitation Procedures Order and applicable non-bankruptcy law in connection with any
or all of their respective activities relating to (x) the tabulations and solicitation of
acceptances or rejections of the Plan and (y) their participation in the other activities described
in Bankruptcy Code § 1125, and thus are entitled to the protections afforded by Bankruptcy Code §
1125(e) and the exculpation, limitation of liability, injunction and release provisions as set
forth in Sections 12.06, 12.07, 12.08 and 12.09 of the Plan. The Debtors and their respective
present and former members, officers, directors, employees, advisors, attorneys, and agents did not
solicit the acceptance or rejection of the Plan by any Holders of Claims prior to the approval and
transmission of the Disclosure Statement. Votes to accept or reject the Plan were only solicited
by the Debtors and their agents, with the support of the Creditors Committee, the 8.125% Notes
Indenture Trustee and the 3% Unsecured Debentures Indenture Trustee, after disclosure to Holders of
Claims of adequate information as defined in § 1125(a) of the Bankruptcy Code as found in the
Disclosure Statement and the Solicitation Procedures Order. In addition, all procedures used to
distribute solicitation packages to Holders of Claims were fair, and conducted in accordance with
the Bankruptcy Code, the Bankruptcy Rules, the Local Bankruptcy Rules and all other applicable
rules, laws and regulations. Such transmittal and service were adequate and sufficient, and no
further notice is or shall be required under the circumstances. In addition, Holders of Claims or
Interests in Classes that were not entitled to vote to accept or reject the Plan were provided with
certain non-voting materials approved by the Bankruptcy Court in compliance with the Solicitation
Procedures Order. The Debtors were excused from mailing solicitation materials to those parties to
whom the Debtors mailed a notice regarding the hearing on the Disclosure Statement and received a
notice from the United States Postal Service or other carrier that such
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notice was undeliverable. If a party changed its mailing address after the Petition Date, the
burden was on such party, not the Debtors, to advise the Solicitation Agent of the new address.
10. In addition, the Debtors, the Creditors Committee, the 8.125% Notes Indenture Trustee,
the 3% Unsecured Debentures Indenture Trustee and their respective officers, directors, employees,
members, advisors, attorneys and agents have participated in good faith and in compliance with the
applicable provisions of the Bankruptcy Code with regard to the offering, issuance and Distribution
of recoveries under the Plan and, therefore, are not, and on account of such Distributions will not
be, liable at any time for the violation of any applicable law, rule or regulation governing the
solicitation of acceptances or rejections of the Plan or Distributions made consistent with and
pursuant to the Plan.
11. Based upon a review of the record, the Court finds that each of the 8.125% Notes Indenture
Trustee and the 3% Unsecured Debentures Indenture Trustee, diligently and in good faith, pursued
all claims, rights, and remedies that might be available, participated in negotiations, discharged
their duties and obligations pursuant to the 8.125% Notes Indenture and the 3% Unsecured Debentures
Indenture, respectively, and otherwise conducted themselves with respect to all matters in any way
related to (a) the 8.125% Notes and the 3% Unsecured Debentures, respectively, (b) the 8.125% Notes
Indenture and the 3% Unsecured Debentures Indenture, respectively, and (c) the Holders of the
8.125% Notes and the Holders of the 3% Unsecured Debentures, respectively, with the same degree of
care and skill that a prudent person would exercise or use under the circumstances in the conduct
of his or her own affairs. Accordingly, the Court finds that each of the 8.125% Notes Indenture
Trustee and the 3% Unsecured Debentures Indenture Trustee have discharged their duties fully in
accordance with the 8.125% Notes Indenture and the 3% Unsecured Debentures Indenture, respectively.
12. Voting Certification. Prior to the Confirmation Hearing, the Debtors filed the
Voting Certification. All procedures used to tabulate the Ballots were fair and conducted in
accordance with the Solicitation Procedures Order, the Bankruptcy Code, the Bankruptcy Rules, the
Local Bankruptcy Rules and all other applicable rules, laws and regulations.
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G. Bankruptcy Rule 3016.
13. The Plan is dated and identifies the parties submitting it, thereby satisfying Bankruptcy
Rule 3016(a). The filing of the Disclosure Statement with the clerk of the Bankruptcy Court
satisfied Bankruptcy Rule 3016(b).
H. Compliance with Bankruptcy Code § 1129.
14. Bankruptcy Code § 1129(a)(1) Compliance with Bankruptcy Code. As set forth in
further detail below, the Plan complies with all applicable provisions of the Bankruptcy Code,
including §§ 1122 and 1123, thereby satisfying Bankruptcy Code § 1129(a)(1).
15. Bankruptcy Code § 1122 Proper Classification. The Plan complies with the
classification requirements of Bankruptcy Code § 1122. All Claims and Interests within each Class
under the Plan are substantially similar and are afforded equal and reasonable treatment, unless
the Holder of a Claim or Interest agrees to less favorable treatment of its Claim or Interest. The
Plan designates seven Classes of Claims and two Classes of Interests. Valid business, legal and
factual reasons exist for the separate classification of each of the classes of Claims and
Interests based upon differences in the legal nature or priority of such Claims and Interests or to
further other legitimate and lawful objectives, the classifications were not done for any improper
purpose and the creation of such Classes does not unfairly discriminate or gerrymander between or
among Holders of Claims or Interests.
16. Bankruptcy Code § 1123(a) Contents of a Plan. In accordance with Bankruptcy
Code § 1123(a), the Plan:
(a) | designates Classes of Claims and Interests, other than Claims of a kind specified in Bankruptcy Code § 507(a)(2), § 507(a)(3) or § 507(a)(8); |
(b) | specifies Classes of Claims and Interests that are not Impaired under the Plan; |
(c) | specifies the treatment of Classes of Claims and Interests that are Impaired under the Plan; |
(d) | provides the same treatment for each Claim or Interest of a particular Class, unless the Holder of a particular Claim or Interest agrees to less favorable treatment of their respective Claim or Interest; |
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(e) | provides for adequate means for the Plans implementation, including (i) the substantive consolidation for voting and distribution purposes of the Estates, (ii) the continued corporate existence of the Debtors, (iii) the appointment of the Plan Administrator and the Plan Advisory Committee, (iv) the issuance of the New TMS Equity Interest to the Plan Administrator, and (v) the execution, delivery, filing and/or recording of all contracts, instruments, releases and other agreements and/or documents related to the foregoing; |
(f) | does not contemplate the issuance of any nonvoting equity securities in accordance with § 1123(a)(6); and |
(g) | contains only provisions that are consistent with the interests of Holders of Claims and Interests and with public policy with respect to the manner of selection of the Plan Administrator (who shall act as the sole officer and director of the Liquidating Debtors) and the Plan Advisory Committee on and after the Effective Date. |
Moreover, the Liquidating Debtors will have, immediately upon the Effective Date, sufficient
Cash to make all payments required to be made on the Effective Date pursuant to the terms of the
Plan. The relief provided in the Plan is fair and necessary for the orderly implementation of the
Plan and the administration of the Estates. Therefore, the Plan satisfies the requirements of
Bankruptcy Code § 1123(a).
17. Bankruptcy Code § 1123(b) Discretionary Contents. The Plan contains various
provisions that may be construed as discretionary, but are not required for Confirmation under the
Bankruptcy Code. As set forth below, such discretionary provisions comply with § 1123(b) of the
Bankruptcy Code and are not inconsistent in any way with the applicable provisions of the
Bankruptcy Code. Thus, § 1123(b) of the Bankruptcy Code is satisfied.
(a) Section 1123(b)(1)-(2)Claims and Executory Contracts.
18. Pursuant to §§ 1123(b)(1) and 1123(b)(2) of the Bankruptcy Code, respectively, Article III
of the Plan impairs or leaves unimpaired, as the case may be, each Class of Claims and Interests.
In addition, Article VI of the Plan provides for the assumption or rejection of executory contracts
and unexpired leases pursuant to § 365 of the Bankruptcy Code and appropriate authorizing orders of
the Bankruptcy Court; provided, however, that subject to the limitations set forth
in the Plan, the Debtors shall be authorized to amend, modify or supplement the Assumed Contract
Schedule at any time up to the Effective Date in accordance with Section 6.01 of the Plan. Subject
to the occurrence of the Effective
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Date, the assumption of the Assumed Contracts and rejection of other executory contracts and
unexpired leases pursuant to the Plan and this Confirmation Order are reasonable exercises of the
Debtors business judgment and are in the best interests of the Debtors, their Estates and
Creditors.
(b) | Section 1123(b)(3)Release, Exculpation, Injunction, Discharge, Settlement and Preservation of Claims Provisions |
19. Plan Premised Upon Global Settlement. The Plan is premised upon a global
settlement of numerous disputes and issues between and among the Debtors, the Creditors Committee,
the 8.125% Notes Indenture Trustee on behalf of its Holders and the 3% Unsecured Debentures
Indenture Trustee on behalf of its Holders, and is the result of extensive, good faith, arms
length negotiations among these parties, and further, reflects the culmination of the substantial
efforts and input of each representative group.
20. Pursuant to Bankruptcy Code § 363 and Bankruptcy Rule 9019, in consideration for, among
other things, the proposed classification of Claims and Interests under the Plan, the Distributions
to the Holders of 8.125% Notes Secured Claims, Qualified Investor Claims, General Unsecured Claims
and 8.125% Notes Deficiency Claims and other benefits provided under the Plan, including the
proportional Distributions of the remaining assets of the Liquidating Debtors as set forth in the
Plan, the creation and funding of the General Unsecured Claims Fund, the satisfaction of the
Administrative Claims of the 8.125% Notes Indenture Trustee and the 3% Unsecured Debentures
Indenture Trustee for fees and expenses, and the releases, injunctions and exculpatory provisions
set forth the Plan at Sections 12.06 through 12.09, the Plan constitutes a settlement of the
following disputes and controversies, among others: (a) the extent and validity of the 8.125% Notes
Secured Claims, (b) the extent and validity of the Liens, Claims and security interests, if any, of
the 8.125% Notes Indenture Trustee and the Holders of the 8.125% Notes on the EMSL Proceeds, (c)
the allocation of the proceeds of the Holdco / Opco Settlement among the chapter 5 claims and
Holdco / Opco Intercompany Claims that were compromised and settled in connection therewith, and
the resultant Liens, Claims and security interests of the 8.125% Notes Indenture Trustee and the
Holders of the 8.125% Notes, if any, that would attach thereto based on such
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allocation, (d) the breadth and comprehensiveness of the release and exculpatory provisions
contemplated by the Plan, (e) the appropriate classification of the various Claims and Interests
under the Plan, (f) the appropriate Distribution of the remaining assets of the Liquidating Debtors
to the various Holders of Claims and Interests, and (g) the timing and priority of such
Distributions under the Plan. The settlement embodied by the Plan is intended to effectuate the
waiver and release of any and all asserted and/or Allowed Superpriority Administrative Claims and
asserted and/or Allowed Secured Claims of the 8.125% Notes Indenture Trustee and the Holders of the
8.125% Notes on account of the 8.125% Notes in exchange for the treatment afforded to the Allowed
Claims of the 8.125% Notes Indenture Trustee and the Holders of the 8.125% Notes on account of the
8.125% Notes as set forth in the Plan. The settlement is intended to and does constitute a full,
final and complete good-faith compromise and settlement of all disputes and controversies between
the relevant parties to this matter including the Debtors, the Creditors Committee, the 8.125%
Notes Indenture Trustee on behalf of its Holders and the 3% Unsecured Debentures Indenture Trustee
on behalf of its Holders.
21. The Global Settlement, as an Integrated Whole, Reasonably Resolves Numerous, Complex
Disputes and Maximizes the Value of the Debtors Estates. After due investigation and
analysis, the Debtors concluded that, based upon the expense, delay, uncertainty, risk and
concomitant disruption to the Debtors ability to make Distributions to their Creditors associated
with litigating the various disputes between the parties, it is in the best interest of the
Debtors Creditors and Estates to resolve the disputes and related matters on the terms set forth
in the settlement that is outlined in the Plan. The settlement is made in exchange for
consideration, is within the range of possible litigation outcomes and is an integral element of
the Plan. For the reasons set forth on the record at the Confirmation Hearing and described
herein, this Bankruptcy Court agrees and so finds that, as demonstrated by the Castellano
Declaration, the memoranda submitted by the parties, the arguments of counsel, and the record
established at the Confirmation Hearing, each of the factors to be considered in determining
whether to approve a settlement pursuant to Bankruptcy Rule 9019 have been satisfiedprobability
of success, difficulties in collection (if applicable), the complexity, expense and delay of
continued litigation, and the
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paramount interests of Creditorsand weigh in favor of resolution of the parties disputes on
the terms set forth in the Plan. In addition, the evidence presented at the Confirmation Hearing
establishes that sound business justifications exist for the Debtors to consummate the settlement
and for the terms and conditions of the Plan to be binding on the Debtors and their Estates.
Specifically, as demonstrated by the Castellano Declaration, the memoranda submitted by the
parties, arguments of counsel and the record established at the Confirmation Hearing, the
settlement (a) represents a consensual, global and immediate resolution of the complex disputes
among the parties, and the value afforded by the global settlement far outweighs its cost, (b) is
an essential element and means of implementation of the Plan pursuant to § 1123(a)(5) of the
Bankruptcy Code, and (c) confers material benefit on, and is in the best interests of the Debtors,
their Estates and Creditors. The failure to approve the settlement would prevent or at least
seriously impair the Debtors ability to confirm the Plan. Accordingly, the Debtors have met their
burden of proving that the settlement is a sound exercise of the Debtors business judgment, is
fair, reasonable and in the best interests of the Debtors, their Estates and Creditors, and that
approval of the settlement is warranted.
22. In addition, the Plan shall constitute a good-faith compromise and settlement of all
Claims, Interests and controversies relating to the contractual, legal, and subordination rights
that a Holder of a Claim may have with respect to any Allowed Claim or Interest, or any
Distribution to be made on account of such Allowed Claim or Interest, and shall include a
settlement of all Claims arising prior to the Petition Date, whether known or unknown, foreseen or
unforeseen, asserted or unasserted, arising out of, relating to or in connection with the business
or affairs of, or transactions with, the Debtors.
23. Except as expressly provided in the Plan, Confirmation shall not in any manner alter or
amend any settlement and compromise between the Debtors and any Person that has been previously
approved by the Bankruptcy Court, including, without limitation, the Holdco / Opco Settlement.
Except as expressly provided in the Plan, to the extent of any conflict between the terms of the
Plan and the terms
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of any prior settlement, the terms of the prior settlement shall control and such prior
settlement shall be enforceable according to its terms.
24. Releases, Exculpation, and Injunction. The Bankruptcy Court has jurisdiction under
§§ 1334(a) and (b) of Title 28 of the United States Code and §§ 105, 524, and 1141 of the
Bankruptcy Code to approve the releases of the Protected Parties, which are set forth in Section
12.08 and 12.09 of the Plan, the exculpations contained in Section 12.06 of the Plan, and the
injunction set forth in Section 12.07 of the Plan. The releases and discharges of Causes of Action
by the Debtors described in Section 12.08 of the Plan pursuant to § 1123(b) of the Bankruptcy Code
constitute good faith compromises and settlements of the matters covered thereby, are an integral
part of the Plan and represent a valid exercise of the Debtors business judgment. Pursuing any
such claims against the Protected Parties who would likely have related Claims against the Debtors
is not in the best interests of the Debtors Estates and Creditors as the costs involved likely
would outweigh any potential benefit from pursuing such claims. Moreover, the Debtors believe that
no legitimate claims against the Protected Parties exist. The failure to obtain approval of and
effect the release, injunction, exculpation and discharge provisions of the Plan would seriously
impair the Debtors ability to confirm the Plan. The injunction provisions set forth in Section
12.07 of the Plan are necessary to preserve and enforce the releases granted by the Plan in Section
12.09 and are narrowly tailored to achieve that purpose. The exculpation provisions set forth in
Section 12.06 of the Plan are appropriately tailored to protect the parties identified in such
section from inappropriate litigation and do not relieve any party of liability for an act or
omission to the extent such act or omission is determined by a Final Order to have constituted
gross negligence or willful misconduct.
25. Thus, each of the release, injunction, exculpation and discharge provisions set forth in
the Plan: (a) is within the jurisdiction of the Bankruptcy Court under 28 U.S.C. §§ 1334(a),
1334(b) and 1334(d); (b) is an essential means of implementing the Plan pursuant to § 1123(a)(5) of
the Bankruptcy Code; (c) is an integral element of the settlements and transactions incorporated
into the Plan; (d) is fair, equitable and reasonable; (e) confer substantial benefits on, and are
in the best interests of, the Debtors Estates and Creditors by, among other things, avoiding the
cost, expense, and uncertainty of litigation
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over various claims asserted by parties in interest being resolved by the settlement; (f) is
important to the overall objectives of the Plan to finally resolve all Claims among or against the
parties-in-interest in the Chapter 11 Cases with respect to the Debtors and their organization,
capitalization, operation and liquidation; and (g) is consistent with §§ 105, 1123, 1129 and other
applicable provisions of the Bankruptcy Code. The record of the Confirmation Hearing and the
Chapter 11 Cases is sufficient to support the release, injunction, exculpation and discharge
provisions contained in Article XII of the Plan and demonstrate that they are consistent with the
Bankruptcy Code and applicable law. Each of the Protected Parties made a material contribution to
the Bankruptcy Proceedings by foregoing certain rights, or by negotiating, implementing, and in
some cases, contributing to the funding of the Plan and the Chapter 11 Cases.
26. Preservation of Causes of Action. Section 4.15 of the Plan appropriately provides
for the preservation by the Debtors, the Liquidating Debtors and the Plan Administrator, as
applicable, of the Causes of Action in accordance with § 1123(b) of the Bankruptcy Code. The
provisions regarding preservation of the Causes of Action in the Plan are specific and unequivocal,
appropriate and are in the best interests of the Debtors, their Estates and Creditors.
27. Transfers by Debtors; Vesting of Assets. Except as provided in the Plan, pursuant
to §§ 1141(b) and (c) of the Bankruptcy Code, as of the Effective Date, all property of the Debtors
being liquidated under the Plan shall vest in the applicable Liquidating Debtor free and clear of
all Claims, Liens, encumbrances and other Interests. From and after the Effective Date, the Plan
Administrator and the Liquidating Debtors, as applicable, may operate (or liquidate and wind up)
their businesses and use, acquire and dispose of property and assets of any nature and settle and
compromise claims or interests without supervision or approval by the Bankruptcy Court and free of
any restrictions of the Bankruptcy Code or Bankruptcy Rules, other than those restrictions
expressly imposed by the Plan and this Confirmation Order. Such vesting does not constitute a
voidable transfer under the Bankruptcy Code or applicable non-bankruptcy law. The vesting of the
property in the Liquidating Debtors, on the Effective
14
Date, in accordance with the Plan is reasonable and necessary and done in accordance with
applicable state law and applicable provisions of the Bankruptcy Code, including Bankruptcy Code §
1123(b).
28. Bankruptcy Code § 1129(a)(2). In accordance with Bankruptcy Code § 1129(a)(2),
the Debtors, as proponents of the Plan, have complied with the applicable provisions of the
Bankruptcy Code. The Debtors are proper debtors under Bankruptcy Code § 109. The Debtors have
complied with the applicable provisions of the Bankruptcy Code (including Bankruptcy Code §§ 1122,
1123, 1124, 1125, 1126 and 1128), the Bankruptcy Rules (including Bankruptcy Rules 3017 3018 and
3019), the Local Rules and the Solicitation Procedures Order in transmitting the Plan, the
Disclosure Statement, the Ballots and all related documents and notices, and in soliciting and
tabulating votes on the Plan.
29. Bankruptcy Code § 1129(a)(3) Proposal of Plan in Good Faith. In accordance
with Bankruptcy Code § 1129(a)(3), the Debtors have proposed the Plan in good faith and not by any
means forbidden by law. In determining that the Plan has been proposed in good faith, the
Bankruptcy Court has examined the totality of the circumstances surrounding the filing of the
Chapter 11 Cases, the Plan itself, and the process leading to its formulation. The Debtors good
faith is evident from the facts and records of the Chapter 11 Cases, the Disclosure Statement and
the hearing thereon, and the record of the Confirmation Hearing and other proceedings held in the
Chapter 11 Cases. The Plan is a product of extensive arms-length negotiations among the Debtors,
the Creditors Committee, the 8.125% Notes Indenture Trustee, the 3% Unsecured Debentures Indenture
Trustee and other parties in interest, as well as their respective legal and financial advisors,
without collusion, and reflects the best interests of the Debtors Estates. The Plan itself, and
the process leading to its formulation, provide independent evidence of the Debtors good faith,
serve the public interest and assure fair treatment of Holders of Claims and Interests. The Court
finds and concludes that the Plan was proposed for the legitimate and honest purpose of liquidating
the Debtors Estates and maximizing the recoveries available to Holders of Claims against the
Debtors.
30. Bankruptcy Code § 1129(a)(4) Payment for Services or Costs and Expenses. The
procedures set forth in the Plan for the Bankruptcy Courts review and ultimate determination of
the fees
15
and expenses to be paid by the Debtors to their professionals and other parties in connection
with the Chapter 11 Cases, or in connection with the Plan and incident to the Chapter 11 Cases,
satisfy the objectives of and are in compliance with § 1129(a)(4) of the Bankruptcy Code and other
relevant provisions of the Bankruptcy Code. Any payments made by the Debtors before Confirmation
are reasonable and have been adequately disclosed.
31. Bankruptcy Code § 1129(a)(5) Directors, Officers and Insiders. The Debtors
have complied with Bankruptcy Code § 1129(a)(5). The Persons that must be identified pursuant to
Bankruptcy Code § 1129(a)(5) have been identified in the Disclosure Statement, the Plan and
exhibits filed in connection therewith. The Plan Administrator shall serve as the sole officer and
director or manager, as applicable, of each of the Liquidating Debtors. The Plan Administrator has
been selected in accordance with the terms of the Plan, and is not an insider of the Debtors. The
selection of the Plan Administrator and the provisions of the Plan in connection therewith are
consistent with the interests of Claim and Interest Holders and with public policy, thereby
satisfying Bankruptcy Code § 1129(a)(5).
32. Bankruptcy Code § 1129(a)(6) No Rate Changes. The Plan does not contain any
rate changes subject to the jurisdiction of any governmental regulatory commission and will not
require governmental regulatory approval, therefore § 1129(a)(6) of the Bankruptcy Code is
satisfied.
33. Bankruptcy Code § 1129(a)(7) Best Interests of Creditors. The liquidation
analysis included within the Plan establishes that, with respect to each Impaired Class, each
Holder of an Allowed Claim or Interest in such Class has voted to accept the Plan or will receive
under the Plan on account of such Claim or Interest property of a value, as of the Effective Date,
that is not less than the amount such Holder would receive if the Debtors were liquidated on the
Effective Date under chapter 7 of the Bankruptcy Code. Thus, the Plan satisfies the best interests
of creditors test set forth in § 1129(a)(7) of the Bankruptcy Code.
34. Bankruptcy Code § 1129(a)(8) Acceptance or Rejection of Certain Classes.
Classes 2, 3 and 8 are not Impaired and thus are deemed to have accepted the Plan. Classes 1, 4,
and 6 are Impaired and those Classes have accepted the Plan in accordance with Bankruptcy Code §
1126(c). Class 5 is
16
Impaired and has voted to reject the Plan. Classes 7 and 9 (together with Class 5, the
Rejecting Classes) are Impaired, and the Holders of Claims and Interests are not entitled
to receive or retain any property under the Plan and thus are deemed to have rejected the Plan.
As discussed more fully below, the Debtors have met the cramdown requirement set forth in §
1129(b) of the Bankrutpcy Code with respect to the Rejecting Classes necessary to obtain
Confirmation of the Plan.
35. Bankruptcy Code § 1129(a)(9) Treatment of Administrative, Priority and Tax
Claims.The Plans treatment of Claims of a kind specified in Bankruptcy Code §§
507(a)(1) through (8) satisfies the requirements set forth in Bankruptcy Code § 1129(a)(9).
36. Bankruptcy Code § 1129(a)(10) Acceptance by Impaired Class. As indicated in
the Voting Certification, in accordance with Bankruptcy Code § 1129(a)(10), at least one Class of
Claims that is Impaired under the Plan has voted to accept the Plan, without including acceptances
of the Plan by any insider. Classes 1, 4 and 6 are each Impaired and have voted to accept the
Plan. The Plan therefore complies with Bankruptcy Code § 1129(a)(10).
37. Bankruptcy Code § 1129(a)(11) Feasibility of the Plan. The evidence proffered
or adduced at the Confirmation Hearing with respect to feasibility (a) is persuasive, credible and
accurate as of the dates such analysis was prepared, presented or proffered, (b) utilizes
reasonable and appropriate methodologies and assumptions, (c) has not been controverted by other
evidence, and (d) establishes that the Liquidating Debtors will have sufficient assets available to
meet their obligations under the Plan. Further, as the Plan and the Plan Administrator Agreement
contemplate the liquidation of all of the Debtors remaining assets, Confirmation cannot be
followed by any liquidation in addition to that prescribed by the Plan or the Plan Administrator
Agreement, nor would Confirmation be followed by the need for further financial reorganization.
Thus, the Plan satisfies the requirements of Bankruptcy Code § 1129(a)(11).
38. Bankruptcy Code § 1129(a)(12) Payment of Fees. In accordance with Bankruptcy
Code § 1129(a)(12), to the extent that fees payable to the United States Trustee under 28 U.S.C. §
1930(a)(6) as determined by the Bankruptcy Court at a hearing pursuant to § 1128 of the Bankruptcy
17
Code have not been paid, the Plan provides for the payment of all such fees on the Effective
Date of the Plan and as they come due after the Effective Date until the Chapter 11 Cases are
converted, dismissed or closed, whichever occurs first.
39. Inapplicability of Bankruptcy Code §§ 1129(a)(13) (16). Bankruptcy Code §
1129(a)(13) is not applicable because the Debtors do not have any retiree benefit plans, as that
term is defined in § 1114 of the Bankruptcy Code. Bankruptcy Code § 1129(a)(14) is not applicable
because the Debtors do not owe domestic support obligations. Bankruptcy Code § 1129(a)(15) is not
applicable because the Debtors are not an individual. Finally, Bankruptcy Code § 1129(a)(16) is
not applicable because the Debtors are not a nonprofit corporation or trust.
40. Bankruptcy Code § 1129(b) No Unfair Discrimination; Fair and Equitable.
Notwithstanding the fact that the Rejecting Classes have voted not to accept the Plan, the Plan may
be confirmed pursuant to § 1129(b)(1) of the Bankruptcy Code because: (a) the Impaired accepting
Classes have voted to accept the Plan; and (b) the Plan does not discriminate unfairly and is fair
and equitable with respect to the Rejecting Classes. Thus, the Plan may be confirmed
notwithstanding the Debtors failure to satisfy § 1129(a)(8) of the Bankruptcy Code. After entry
of the Confirmation Order and upon the occurrence of the Effective Date, the Plan shall be binding
upon the members of the Rejecting Classes.
41. The Plan does not unfairly discriminate because members within each Class are treated
similarly. Accordingly, the Plan does not discriminate unfairly in respect to the Rejecting Classes
or any other Class of Claims or Interests, as required by Bankruptcy Code § 1129(b)(1) and (2).
The Plan is also fair and equitable with respect to the Rejecting Classes. Any disparate treatment
between the Holders of Claims in different Classes is based on valid and legitimate differences in
the priority of each such Class in accordance with the applicable provisions of the Bankruptcy
Code. No Holders of Claims or Interests junior to the Claims and Interests in Classes 5, 7, and 9
will receive or retain any property on account of their Claims and Interests, and no Holders of
Claims or Interests senior to the Claims and Interests in Classes 5, 7 and 9 are receiving more
than full payment on account of the Claims and Interests in such
18
Classes. Therefore the Plan is fair and equitable, does not discriminate unfairly and
satisfies the requirements of § 1129(b).
42. Bankruptcy Code § 1129(c) Only One Plan. Other than the Plan (including
previous versions thereof), no other plan has been filed in the Chapter 11 Cases. Accordingly, the
requirements of § 1129(c) of the Bankruptcy Code have been satisfied.
43. Bankruptcy Code § 1129(d) Principal Purpose. No governmental unit has
requested that the Bankruptcy Court deny confirmation of the Plan on the grounds that the principal
purpose of the Plan is the avoidance of taxes or the avoidance of the application of § 5 of the
Securities Act. As evidenced by its terms, the principal purpose of the Plan is not such
avoidance. Accordingly, the Plan satisfies the requirements of § 1129(d) of the Bankruptcy
Code.
44. Bankruptcy Code § 1129(e) Not Small Business Cases. None of the Chapter 11
Cases are a small business case, as that term is defined the Bankruptcy Code, and accordingly, §
1129(e) of the Bankruptcy Code is inapplicable.
I. Satisfaction of Confirmation Requirements.
45. Based upon the foregoing, the Plan satisfies the requirements for confirmation set forth
in § 1129 of the Bankruptcy Code.
J. Plan Administrator Agreement.
46. The Plan Administrator Agreement is an essential element of the Plan and entry into the
Plan Administrator Agreement is in the best interests of the Debtors, their Estates and Creditors.
The Plan Administrator Agreement has been negotiated in good faith, at arms length, and the
Debtors have exercised reasonable business judgment in determining to enter into the Plan
Administrator Agreement. The Debtors have provided sufficient and adequate notice of the Plan
Administrator Agreement, including any material modifications to the Plan Administrator Agreement,
to all parties in interest. The Plan Administrator Agreement and all other documents associated
with the Plan Administrator Agreement shall, upon execution, be valid, binding, and enforceable,
and shall not be in conflict with any federal or state law.
19
K. | Consolidation. |
47. The Court finds that the consolidation of the Debtors Estates, other than Trico Holdco
and TMC, only for purposes of voting on the Plan and making Distributions to Holders of Claims
under the Plan will facilitate and maximize prompt Distributions to Holders of Claims and is in the
best interests of the Debtors, their Estates and Creditors.
L. Conditions to Confirmation.
48. Entry of the Confirmation Order, in a form and substance acceptable to the Debtors, the
Creditors Committee, the 8.125% Notes Indenture Trustee and the 3% Unsecured Debentures Indenture
Trustee, shall satisfy the conditions to Confirmation set forth in Section 8.01 of the Plan.
M. Agreements and Other Documents.
49. The Debtors have made adequate and sufficient disclosure under the circumstances of: (a)
the adoption of new or amended and restated certificate of incorporation and bylaws or similar
constituent documents for the Debtors or the Liquidating Debtors; (b) the Distributions to be made
pursuant to the Plan; (c) the adoption, execution, delivery and implementation of all contracts,
leases, instruments, releases and other agreements or documents related to any of the foregoing;
and (d) the other matters provided for under the Plan involving the corporate structure of the
Debtors or the Liquidating Debtors.
N. Preservation of Causes of Action.
50. It is in the best interests of the Debtors, their Estates and Creditors that all Causes of
Action except those specifically released pursuant to the terms of the Plan be retained by the
Liquidating Debtors pursuant to Section 4.15 of the Plan to maximize the value of the Debtors
Estates.
O. Election Pursuant to 11 U.S.C. § 1111(b).
51. No secured Creditor has elected the treatment provided by § 1111(b) of the Bankruptcy
Code.
20
P. Likelihood of Satisfaction of Conditions Precedent to Consummation.
52. Each of the conditions precedent to the Effective Date, as set forth in Section 8.02 of
the Plan, has been satisfied or waived in accordance with the provisions of the Plan, or is
reasonably likely to be satisfied.
Q. Modifications to the Plan.
53. Subsequent to solicitation, the Debtors made certain modifications to the Plan that did
not adversely change the treatment of the Claim of any Creditor. Disclosure of any such
modifications on the record at the Confirmation Hearing constitutes due and sufficient notice
thereof under the circumstances of these Chapter 11 Cases. All modifications to the Plan since the
entry of the Solicitation Procedures Order are consistent with all of the provisions of the
Bankruptcy Code, including, but not limited to, §§ 1122, 1123, 1125, and 1127 of the Bankruptcy
Code. Except as provided for by law, contract or prior order of the Bankruptcy Court, (a) none of
the modifications made since the commencement of solicitation, including, without limitation, the
agreements to provide the recoveries to the objecting parties as set forth in Paragraphs 131
through 134 of this Confirmation Order, adversely changes the treatment of the claim of any Holder
of a Claim or Interest under the Plan., (b) all such modifications are deemed accepted by all
creditors and equity security holders who have previously accepted the Plan, and (c) adequate
notice under the circumstances was provided to any Holder of a Claim or Interest under the plan,
all in accordance with Bankruptcy Rule 3019(a). Additionally, none of the modifications to the
Plan since the commencement of solicitation, including, without limitation, the agreements to allow
certain Claims and to provide the recoveries to the objecting parties set forth in Paragraphs 131
through 134 of this Confirmation Order, causes a material negative impact on the timing, and/or
amount of the consideration projected to be distributed to the various classes of creditors as set
forth and estimated in the Plan and Disclosure Statement or renders the Plan nonconfirmable
pursuant to the Final Order Authorizing Use of Cash Collateral and Granting Adequate Protection,
filed on June 10, 2011 (the Final Cash Collateral Order) [Docket No. 1306]. Accordingly,
pursuant to § 1127(a) of the Bankruptcy Code,
21
none of the modifications require additional disclosure under § 1125 of the Bankruptcy Code or
resolicitation of votes under § 1126 of the Bankruptcy Code.
ORDER
BASED ON THE FOREGOING FINDINGS OF FACT, IT IS THEREFORE ORDERED, ADJUDGED, AND DECREED THAT:
A. | Confirmation of Plan. |
54. The Plan is APPROVED and CONFIRMED under Bankruptcy Code § 1129. Except as otherwise set
forth in this Confirmation Order, the Plan is valid and enforceable pursuant to its terms and the
terms of the Plan are incorporated by reference into and are an integral part of this Confirmation
Order. The exhibits to the Plan, including all parts of the Plan Supplement (as may be modified
pursuant to the terms of the Plan or such exhibit, as applicable) are incorporated by reference
into and comprise and integral part of the Plan and this Confirmation Order. A copy of the Plan is
attached hereto as Exhibit A.
B. Objections.
55. To the extent that any objections, reservations of rights, statements or joinders to
Confirmation have not been withdrawn, waived or settled prior to entry of the Confirmation Order or
otherwise resolved as set forth herein, they are hereby expressly overruled on the merits.
C. Findings of Fact and Conclusions of Law.
56. The findings of fact and the conclusions of law stated in the Confirmation Order shall
constitute findings of fact and conclusions of law pursuant to Bankruptcy Rule 7052, made
applicable to the proceeding by Bankruptcy Rule 9014. All findings of fact and conclusions of law
announced by this Bankruptcy Court on the record in connection with Confirmation of the Plan or
otherwise at the Confirmation Hearing are incorporated herein by reference. To the extent any
finding of fact shall be determined to be a conclusion of law, it shall be so deemed, and to the
extent any conclusion of law shall be determined to be a finding of fact, it shall be so deemed.
To the extent that any of the findings of fact or conclusions of law constitutes an order of this
Court, they are adopted as such.
22
D. | Dismissal of Certain of the Chapter 11 Cases |
57. Immediately after the Effective Date, the Chapter 11 Cases of Trico Holdco and TMC shall
be deemed dismissed for all purposes pursuant to Bankruptcy Code § 1112.
E. | Approval of Plan Supplement. |
58. Upon the Effective Date, all actions contemplated by the Plan shall be deemed authorized
and approved in all respects. The terms of the Plan, the Plan Supplement and any other exhibits
thereto, as such documents have been and as may be amended, modified and supplemented, are
incorporated by reference into, and are an integral part of, the Confirmation Order. The form and
substance of the Plan, the Plan Supplement and all other exhibits thereto, and each of their
provisions are confirmed and approved in each and every respect pursuant to § 1129 of the
Bankruptcy Code. Except as may be set forth in the Plan, the Debtors, Liquidating Debtors or Plan
Administrator, as applicable, are authorized and empowered to make any and all modifications to any
and all documents included as part of the Plan that may be agreed to by the parties thereto and
that are consistent with the Plan and the terms of this Confirmation Order.
F. | Provisions Governing Distributions. |
59. The provisions in Article V and VII of the Plan governing Distributions contemplated in
the Plan are deemed incorporated in this Confirmation Order as if set forth in full herein and are
hereby approved in their entirety subject to any modifications otherwise provided for in this
Confirmation Order.
G. Plan Classification Controlling.
60. The terms of the Plan shall solely govern the classification of Claims and Interests for
purposes of the Distributions to be made thereunder. The classifications set forth on the Ballots
tendered to or returned by the Holders of Claims or Interests in connection with voting on the
Plan: (a) were set forth on the Ballots solely for purposes of voting to accept or reject the Plan,
(b) do not necessarily represent, and in no event shall be deemed to modify or otherwise affect,
the actual classification of such Claims and Interests under the Plan for Distribution purposes,
(c) may not be relied upon by any Holder of a Claim or Interest as representing the actual
classification of such Claim or Interest under the Plan for
23
Distribution purposes and (d) shall not be binding on the Debtors and Liquidating Debtors
except for voting purposes.
H. Substantive Consolidation.
61. The Plan contemplates and is predicated upon the consolidation of the Debtors Estates,
other than Trico Holdco and TMC, only for purposes of voting on the Plan and making Distributions
to Holders of Claims under the Plan. On the Effective Date, and other than with respect to Trico
Holdco and TMC, (a) all assets and liabilities of the Debtors will, for voting and Distribution
purposes only, be merged or treated as if they were merged, (b) each Claim against the Debtors will
be deemed a single Claim against and a single obligation of the Debtors, (c) all Intercompany
Claims by, between, and among the Debtors will be eliminated and (d) any obligation of the Debtors
and all guaranties thereof by one or more of the other Debtors, will be deemed to be one obligation
of all of the Debtors. Except as set forth in the Plan, such consolidation shall not (other than
for purposes related to the Plan) affect the legal and corporate structures of the Debtors or
Liquidating Debtors.
62. Consolidation of the Debtors for voting and making Distributions is in the best interests
of all Holders of Claims and Interests, is necessary for the implementation of the Plan and is
appropriate in the Chapter 11 Cases. Any alleged defaults under any applicable agreement with the
Debtors or the Liquidating Debtors arising from such consolidation under the Plan shall be deemed
cured as of the Effective Date.
I. Transactions Contemplated By the Plan.
63. Approval of Plan Administrator Agreement. The Plan Administrator Agreement
(together with all schedules, addendums, exhibits, annexes, and other attachments thereto and as
supplemented, amended and modified) is APPROVED, and the Debtors, the Liquidating Debtors, the Plan
Administrator and the Plan Advisory Committee are authorized to take all actions contemplated under
the Plan Administrator Agreement. The terms and provisions of the Plan Administrator Agreement
constitute legal, valid, binding and authorized obligations of the parties thereto, enforceable in
accordance with its terms.
24
64. Vesting of Assets. Except as otherwise set forth in the Plan or this Confirmation
Order or in any contract, instrument, release, other agreement or document entered into or
delivered in connection with the Plan, all property of the Debtors being liquidated thereunder
shall vest in the applicable Liquidating Debtor free and clear of all Claims, Liens, encumbrances
and other Interests. From and after the Effective Date, the Liquidating Debtors may liquidate and
wind up their businesses and use, acquire and dispose of property and assets of any nature and
settle and compromise Claims or Interests without supervision or approval by the Bankruptcy Court
and free of any restrictions of the Bankruptcy Code or Bankruptcy Rules, other than those
restrictions expressly imposed by the Plan and the Confirmation Order. The EMSL Proceeds and Opco
Equity and Warrants shall be held by the Plan Administrator in trust for the beneficiaries of the
Plan and may not be used for any purpose other than as provided for in the Plan. Without limiting
the generality of the foregoing and subject to the other provisions of the Plan, the Liquidating
Debtors may, without application to or approval by the Bankruptcy Court, pay fees that they incur
after the Effective Date for Professional fees and expenses.
65. Continued Existence. The Debtors shall continue to exist as the Liquidating
Debtors after the Effective Date in accordance with the laws of their respective states or
applicable jurisdiction of incorporation, formation, or organization and pursuant to their
respective certificates of incorporation, by-laws, articles of formation, operating agreements, and
other organizational documents in effect prior to the Effective Date, except to the extent such
certificate of incorporation and by-laws are amended under the Plan, or as deemed necessary or
appropriate by the Liquidating Debtors to effect the Plan, for the limited purposes of liquidating
all of the assets of the Estates and making Distributions in accordance with the Plan.
66. Transactions Regarding Non-Debtor Subsidiaries. On the Effective Date, or as soon
as reasonably practicable thereafter, the Plan Administrator may enter into transactions deemed
necessary or appropriate to effect the sale, liquidation, dissolution, winding-up or other
disposition of the Liquidating Debtors non-Debtor subsidiaries other than the Opco Entities (or
their assets), and may take any and all actions that may be necessary or appropriate to effect such
transactions including (a) the execution and
25
delivery of appropriate agreements or other documents of merger, consolidation, restructuring,
conversion, disposition, transfer, dissolution or liquidation containing terms that are consistent
with the terms of the Plan and that satisfy the applicable requirements of applicable
non-bankruptcy law and any other terms to which the Plan Administrator, on behalf of the applicable
Entities may agree; (b) the execution and delivery of appropriate instruments of transfer,
assignment, assumption or delegation of any asset, property, right, liability, debt or obligation
on terms consistent with the terms of the Plan and having other terms for which the applicable
parties agree; (c) the filing of appropriate certificates or articles of incorporation,
reincorporation, merger, consolidation, conversion or dissolution pursuant to applicable
non-bankruptcy law; (d) filing of bankruptcy and insolvency proceedings in accordance with the
provisions of applicable law; and (e) all other actions that the Plan Administrator, on behalf of
the applicable Entities determine to be necessary or appropriate, including making filings or
recordings that may be required by applicable law. All such actions are hereby authorized without
any further action by any former or current shareholders, members, officers, directors, owners or
other Persons.
67. Management of Liquidating Debtors; Authority. On the Effective Date, the existing
directors of the Debtors shall be deemed to have resigned. All duties and obligations of such
directors are deemed to have been discharged in full and terminated on and after the Effective
Date.
68. Pursuant to Section 4.08 of the Plan, the Plan Administrator shall serve as the sole
officer and director or manager, as applicable, of each of the Liquidating Debtors. This Court
approves the appointment of the Plan Administrator as disclosed in the Plan Supplement or as
otherwise announced at the Confirmation Hearing, as of and immediately following the Effective
Date. As set forth in Section 4.08 of the Plan, and subject to the rights of the Plan Advisory
Committee and the terms of the Plan Administrator Agreement, the Plan Administrator and its agents,
representatives and professionals are authorized and empowered to (a) issue, execute, deliver, file
and record, as appropriate, any contracts, instruments, releases, indentures, mortgages, deeds,
bills of sale, assignments, leases or other agreements or documents and (b) perform such other acts
and execute and deliver such other documents as are required by, consistent with and necessary or
appropriate to implement, effectuate or consummate the
26
Plan and this Confirmation Order and the transactions contemplated thereby and hereby, all
without the requirement of further application to, or order of, the Bankruptcy Court.
69. The Debtors and the Liquidating Debtors are further authorized and empowered to enter into
and, if applicable, cause to be filed with the Secretary of State or other applicable officials of
any applicable governmental unit any and all amended or restated certificates or articles of
incorporation, organization or formation or amendments to limited liability company agreements,
operating agreements or regulations and all such other actions, filings or recordings as may be
required under appropriate provisions of the applicable laws of all applicable governmental units
with respect to compliance with § 1123(a)(6) of the Bankruptcy Code.
70. No Action. Pursuant to § 1142(b) of the Bankruptcy Code, no action of the
directors or members of the Debtors will be required (a) to authorize the Debtors to effectuate and
carry out the Plan or any order of the Bankruptcy Court relating thereto, (b) to consummate the
transactions contemplated by the Plan or such orders, or (c) to take any other action or thing
contemplated by the Plan or such orders as may be entered in connection therewith, and all such
actions and things hereby are or will be deemed to have been taken or done with like effect as if
they had been authorized or approved by unanimous actions of the directors and the members of the
Debtors.
71. Preservation of Causes of Action. Except to the extent such rights, claims, Causes
of Action, defenses, and counterclaims are otherwise dealt with in the Plan or are expressly and
specifically released in connection with the Plan, the Confirmation Order or in any settlement
agreement approved during the Chapter 11 Cases, or otherwise provided in the Confirmation Order or
in any contract, instrument, release, indenture or other agreement entered into in connection with
the Plan, in accordance with Bankruptcy Code § 1123(b): (a) any and all rights, claims, Causes of
Action (including Avoidance Actions), defenses, and counterclaims of or accruing to the Debtors or
their Estates shall remain assets of and vest in the Liquidating Debtors, whether or not litigation
relating thereto is pending on the Effective Date, and whether or not any such rights, claims,
Causes of Action, defenses and counterclaims have been listed or referred to in the Plan, the
Bankruptcy Schedules, or any other document filed with the
27
Bankruptcy Court, and (b) the Liquidating Debtors shall in no manner waive, relinquish, or
abandon (nor shall they be estopped or otherwise precluded from asserting) any right, claim, Cause
of Action, defense, or counterclaim that constitutes property of the Estates: (i) whether or not
such right, claim, Cause of Action, defense, or counterclaim has been listed or referred to in the
Plan or the Bankruptcy Schedules, or any other document filed with the Bankruptcy Court, (ii)
whether or not such right, claim, Cause of Action, defense, or counterclaim is currently known to
the Debtors, and (iii) whether or not a defendant in any litigation relating to such right, claim,
Cause of Action, defense or counterclaim filed a proof of Claim in the Chapter 11 Cases, filed a
notice of appearance or any other pleading or notice in the Chapter 11 Cases, voted for or against
the Plan, or received or retained any consideration under the Plan. Without in any manner limiting
the generality of the foregoing, notwithstanding any otherwise applicable principal of law or
equity, without limitation, any principals of judicial estoppel, res judicata, collateral estoppel,
issue preclusion, or any similar doctrine, the failure to list, disclose, describe, identify, or
refer to a right, claim, Cause of Action, defense, or counterclaim, or potential right, claim,
Cause of Action, defense, or counterclaim, in the Plan, the Bankruptcy Schedules, or any other
document filed with the Bankruptcy Court shall in no manner waive, eliminate, modify, release, or
alter the Liquidating Debtors right to commence, prosecute, defend against, settle, and realize
upon any rights, claims, Causes of Action, defenses, or counterclaims that the Debtors or the
Liquidating Debtors have, or may have, as of the Effective Date. Subject to the express provisions
of the Plan, including Sections 4.07 and 4.08 thereof, the Liquidating Debtors may commence,
prosecute, defend against, settle, and realize upon any rights, claims, Causes of Action, defenses,
and counterclaims in their sole discretion, in accordance with what is in the best interests, and
for the benefit, of the Liquidating Debtors.
72. Additional Orders. After the Effective Date, the Liquidating Debtors may present
such Order(s) or assignment(s) to the Bankruptcy Court, for entry or approval and suitable for
filing in the records of every county or governmental unit where their property is or was located,
which provide that such property is conveyed to and vested in the Liquidating Debtors. Subject to
the occurrence of the Effective Date, and except as otherwise set forth in the Plan or the
Confirmation Order, (a) the Plan shall
28
be conclusively deemed to be adequate notice that such Lien, Claim, encumbrance or other
interest is being extinguished, and no notice, other than by the Plan, shall be given prior to the
presentation of such Order(s) or assignment(s) and (b) any Person having a Lien, Claim, encumbrance
or other interest against any Estate property shall be conclusively deemed to have consented to the
transfer, assignment and vesting of such Estate property free and clear of any such Liens, Claims
encumbrances or other interests to the Liquidating Debtors.
73. Wind-down Reserve Budget. Section 4.10 of the Plan is amended to provide as
follows: The Plan Administrator shall establish the Wind-down Reserve Budget (as defined in the
Plan Administrator Agreement) that is funded by the Wind-down Reserve and shall pay, among other
costs and expenses, wind-down costs and costs of holding and liquidating the Estates assets,
including, but not limited to, taxes, compensation of the Plan Administrator, and compensation of
any professionals retained by the Plan Administrator from the Wind-down Reserve; provided that the
Wind-down Reserve shall not be implemented without the prior unanimous consent of the Plan Advisory
Committee of the Wind-down Reserve Budget. The Plan Administrator or Plan Advisory Committee, as
applicable, must file a notice with the Bankruptcy Court detailing the identity of any attorneys
engaged for the purpose of representing the Liquidating Debtors in connection with any Cause of
Action, including the Opco Claims, the D&O Litigation and the Avoidance Actions, and the terms of
such engagement. To the extent that the Plan Administrator determines that funds so reserved are
insufficient, the proceeds of the continuing liquidation of assets, the EMSL Proceeds and any other
assets held by the Liquidating Debtors, to the extent necessary for such purposes, will be
allocated to the Wind-down Reserve. The Opco Equity and Warrants may only be monetized in
accordance with terms of Section 4.11 of the Plan and utilized for the purposes contemplated by
Section 4.10 of the Plan after notice to and an opportunity to object by the Plan Advisory
Committee. After all costs associated with a Wind-down Reserve have been paid, and/or upon the
reasonable determination by the Plan Administrator that the funds in the Wind-down Reserve exceed
the amounts necessary to pay the expenses for which such fund is established, the remaining or
excess funds (the Excess Funds) shall constitute either (i) to the extent neither the
Initial Cash Balance or the
29
Opco Equity and Warrants or any portion or combination thereof was utilized to satisfy the
costs associated with the Wind-Down Reserve, Residual Distribution Assets, or (ii) to the extent
either the Initial Cash Balance or the Opco Equity and Warrants or any portion or combination
thereof was utilized to satisfy the costs associated with the Wind-Down Reserve, Unsecured
Distribution Assets, and in either case, shall be distributed in accordance with the terms of the
Plan.
J. | Provisions Regarding the Plan Administrator and Plan Advisory Committee. |
74. Compensation of Plan Administrator. The Plan Administrator shall be compensated
from the Wind-down Reserve pursuant to the terms of the Plan Administrator Agreement. Any
professionals retained by the Plan Administrator, who were retained after obtaining the prior
written consent of a majority of the Plan Advisory Committee in accordance with the Plan
Administrator Agreement, shall be entitled to the compensation for services rendered, and
reimbursement of expenses incurred, set forth in the Wind-down Reserve Budget (as defined in the
Plan Administrator Agreement) and any such compensation shall be funded from the Wind-down Reserve.
The payment of the fees and expenses of the Plan Administrator and its retained professionals that
are made in accordance with the terms of the Plan Administrator Agreement shall be made in the
ordinary course of business and shall not be subject to approval of the Bankruptcy Court; provided,
however, that any disputes related to such fees and expenses shall be brought before the Bankruptcy
Court.
75. Wind-down of the Debtors Estates. Subject to the rights of the Plan Advisory
Committee as set forth in Section 4.08 of the Plan and the Plan Administrator Agreement, the Plan
Administrator shall oversee the liquidation of the Liquidating Debtors and the winding up of their
respective businesses and shall make Distributions to, and otherwise hold all property of the
Liquidating Debtors for the benefit of, Holders of Allowed Claims consistent and in accordance with
the Plan and the Confirmation Order. Neither the Liquidating Debtors nor the Plan Administrator
shall be required to post a bond in favor of the United States.
76. Duties of the Plan Administrator. Except as otherwise provided in the Plan or the
Plan Administrator Agreement, the Plan Administrator, subject to the rights of the Plan Advisory
Committee
30
as set forth in Section 4.08 of the Plan and the Plan Administrator Agreement, shall have the
power and authority to perform the following acts on behalf of the Liquidating Debtors, in addition
to any powers granted by applicable non-bankruptcy law or conferred by any other provision of the
Plan, or orders of the Bankruptcy Court: (a) take all steps and execute all instruments and
documents necessary to make Distributions to Holders of Allowed Claims; (b) object to Claims,
Administrative Expenses or Interests as provided in the Plan and prosecute such objections; (c)
resolve, compromise and/or settle any objections to the amount, validity, priority, treatment,
allowance or priority of Claims, including Administrative Claims, or Interests; (d) comply with the
Plan and the obligations thereunder; (e) if necessary, employ, retain or replace professionals to
represent it with respect to its responsibilities; (f) establish, replenish or release reserves as
provided in the Plan, as applicable; (g) take all actions necessary or appropriate to enforce the
Debtors or Liquidating Debtors rights under any order authorizing a sale of assets, and any
related document and to fulfill, comply with or otherwise satisfy the Debtors or Liquidating
Debtors covenants, agreement and obligations under any such sale and any related document; (h)
make all determinations on behalf of the Debtors or Liquidating Debtors under any sale; (i) prepare
and file applicable tax returns for any of the Debtors or Liquidating Debtors; (j) liquidate or
administer through sale, prosecution, compromise or release any of the assets; (k) deposit funds of
the Liquidating Debtors, draw checks and make disbursements consistent with the terms of the Plan;
(l) purchase or continue insurance protecting the Debtors, the Liquidating Debtors, the Plan
Administrator, their respective representatives, agents, employees or independent contractors, and
the property of the Liquidating Debtors; (m) seek entry of a final decree in any of the Chapter 11
Cases at the appropriate time; (n) prosecute, resolve, compromise and/or settle any litigation,
except the Avoidance Actions, the D&O Litigation and the Opco Claims (as hereinafter defined); (o)
seek tax liability pursuant to Bankruptcy Code § 505; (p) abandon in any commercially reasonable
manner, including abandonment or donation to a charitable organization (as such term is described
in the Internal Revenue Code § 501(c)(3) (whose contributions are deductible under Internal Revenue
Code § 170)) of the Plan Administrators choice, any assets that are of no material benefit,
including distributable Cash under the Plan; (q) take all actions
31
necessary or appropriate to pursue, defend, compromise, settle or otherwise resolve any and
all Causes of Action, except Avoidance Actions, the D&O Litigation and the Opco Claims; and (r)
take such other action as the Plan Administrator may determine to be, necessary, desirable or
appropriate to carry out the purpose of the Plan. The Plan Administrator shall have no duties,
obligations or authority with respect to the pursuit, defense, settlement or any other aspect of
the Avoidance Actions, the Opco Claims and the D&O Litigation, which litigation shall be entirely
managed and controlled by the Creditors Committee representative on the Plan Advisory Committee,
subject to the rights of the representative on the Plan Advisory Committee appointed by the 8.125%
Notes Indenture Trustee, as set forth in Section 4.08 of the Plan.
77. Plan Administrator as Fiduciary. The Plan Administrator shall be a fiduciary of
each of the Debtors and Beneficiaries (as defined in the Plan Administrator Agreement) and shall
perform its obligations consistent with the Plan, the Plan Administrator Agreement, this
Confirmation Order and other applicable orders. Without limiting the foregoing, and
notwithstanding anything to the contrary contained herein, the Plan Administrator has a fiduciary
duty to act in the best interest of the Beneficiaries, as a whole.
78. Preservation of Books and Records. After Confirmation but prior to the Effective
Date, the Debtors, and after the Effective Date, the Plan Administrator, may enter into such
agreements and arrangements as are commercially reasonable and in the best interests of the estates
for the preservation of the Debtors corporate books, records and intellectual property, and so
long as such agreements are consistent with the Plan Administrator Agreement and any orders of this
Court regarding use of cash collateral.
79. Appointment of Plan Advisory Committee. On the Effective Date, a Plan Advisory
Committee shall be appointed to oversee the implementation of the Plan by the Plan Administrator.
The members of the Plan Advisory Committee shall undertake their duties as specified in the Plan.
The Plan Advisory Committee shall initially be composed of three representatives, one each
appointed by (a) the 8.125% Notes Indenture Trustee; (b) the Creditors Committee; and (c)
collectively, the 8.125% Notes
32
Indenture Trustee and the Creditors Committee. If the 8.125% Notes Indenture Trustee and
the Creditors Committee cannot agree on a third representative before the Effective Date, the
representatives appointed by the 8.125% Notes Indenture Trustee and the Creditors Committee shall
together select and appoint the third representative on the Effective Date. Under no circumstances
shall any representative on the Plan Advisory Committee, or the representatives agent, designee or
person under control, be a person that the Liquidating Debtors Estates potentially have a Cause of
Action against or has been or may be named a defendant in any potential Cause of Action. In
addition, a Plan Advisory Committee representative may not be an employee, creditor, agent,
designee or person under the control of a party that voted against the Plan or otherwise acted to
impede Confirmation.
80. Rights, Duties and Obligations of the Plan Advisory Committee. The Plan Advisory
Committee shall: (a) have the right and obligation to review and provide advice with respect to the
Wind-down Reserve Budget (as defined in the Plan Administrator Agreement) established in connection
with the Plan Administrators proposed Wind-down Reserve, which shall not be implemented without
the prior written consent of a majority of the Plan Advisory Committee; provided that the Plan
Advisory Committee shall not approve a Wind-down Reserve Budget or the establishment of a Wind-down
Reserve that provides for the incurrence of costs and expenses that are likely to
disproportionately benefit any Beneficiary; (b) have the right and obligation to review and provide
advice with respect to the retention of professionals by the Plan Administrator in accordance with
Section 7.03 of the Plan Administrator Agreement and such professionals shall not be retained
without the prior written consent of a majority of the Plan Advisory Committee; (c) have the right
and obligation to review and provide advice with respect to any action proposed to be taken by the
Plan Administrator in accordance with Section 6.02 of the Plan Administrator Agreement, which
action shall not be undertaken without the prior written consent of a majority of the Plan Advisory
Committee; provided that the Plan Advisory Committee shall not approve any actions by the Plan
Administrator pursuant to Section 6.02 of the Plan Administrator Agreement that are likely to
disproportionately benefit any Beneficiary(as defined in the Plan Administrator Agreement); (d)
have the right and obligation to review and, if appropriate, object to settlements and proposed
releases
33
or abandonment of objections to Claims, Avoidance Actions or Causes of Action by the Plan
Administrator or Liquidating Debtors, as applicable, in accordance with the Plan, provided,
however, that such right and obligation to review and, if appropriate, object shall apply only to
Claims, Avoidance Actions or Causes of Action that were asserted in an amount in excess of
$250,000.00; (e) have the right to remove or replace the Plan Administrator, with or without cause,
upon the unanimous written consent of all Plan Advisory Committee members; and (f) perform such
additional functions and have such other rights, duties, powers and obligations as (i) may be
agreed to by the Plan Administrator and the Liquidating Debtors, (ii) are provided for in the
Confirmation Order, or (iii) are provided for by further order of the Bankruptcy Court entered
after the Effective Date.
81. In addition, the representative appointed by the Creditors Committee on the Plan Advisory
Committee shall have the exclusive power and authority to take all actions necessary or appropriate
to prosecute, pursue, defend, compromise, settle or otherwise resolve any Avoidance Actions, the
Opco Claims or the D&O Litigation; provided, however, that the Plan Advisory Committee
representative appointed by the Creditors Committee must obtain the consent of the Plan Advisory
Committee representative appointed by the 8.125% Notes Indenture Trustee on any decision to
commence or not commence or to compromise, settle or otherwise resolve an Avoidance Action, the
Opco Claims or the D&O Litigation. To the extent reasonably practicable, the Creditors Committee
representative will inform the other Plan Advisory Committee representatives prior to commencing
any Avoidance Actions, proceedings regarding the Opco Claims or the D&O Litigation and will provide
such other representatives periodic updates of the status of those proceedings.
82. In addition, each Plan Advisory Committee member shall have the power and authority to
take all actions necessary or appropriate to prosecute, pursue, defend, compromise, settle, object
to, or otherwise resolve any substantial contribution motion or other motion or application to
allow or compel payment of any asserted fee and expense claims (the Fee Claims). Each
Plan Advisory Committee member who undertakes any actions with respect to Fee Claims or otherwise
pursuant to the Plan
34
Administrator Agreement shall be entitled to receive reasonable fees and expenses for itself
and any professionals hired in accordance with Section 7.03 of the Plan Administrator Agreement.
83. In prosecuting, pursuing, defending, compromising, settling, objecting to, or otherwise
resolving Fee Claims (a) the representative of the Plan Advisory Committee appointed by the 8.125%
Notes Indenture Trustee shall be deemed to be a successor in interest to the 8.125% Notes Indenture
Trustee for standing purposes only, (b) the representative of the Plan Advisory Committee appointed
by the Creditors Committee shall be deemed to be a successor in interest to the Creditors
Committee for standing purposes only and (c) the representative of the Plan Advisory Committee
appointed collectively by the 8.125% Notes Indenture Trustee, the 3% Unsecured Debentures Indenture
Trustee and the Creditors Committee, or alternatively, the other two Plan Advisor Committee
members, if applicable, shall be deemed to be a successor in interest to the Debtors for standing
purposes only.
84. Plan Advisory Committee Members as Fiduciaries. Notwithstanding anything to the
contrary contained herein, each Plan Advisory Committee member has a fiduciary duty to act in the
best interests of the Beneficiaries (as defined in the Plan Administrator Agreement), as a whole.
85. Advice and Direction to Plan Administrator. The Plan Advisory Committee shall
provide advice, instruction and direction on matters arising in the administration and in the
disposition and distribution of Estate Assets (as defined in the Plan Administrator Agreement), and
in the pursuit of Causes of Action, as requested by the Plan Administrator, or as otherwise
specifically provided in the Plan Administrator Agreement.
86. Resolution of Disputes Between the Plan Advisory Committee and the Plan Administrator
and Between and Among Plan Advisory Committee Members. To the extent the Plan Administrator
and the Plan Advisory Committee cannot resolve any dispute that may arise between them, or that may
arise between and among the Plan Advisory Committee members, any party may file appropriate
pleadings with the Bankruptcy Court seeking resolution of the dispute by the Bankruptcy Court.
Without limiting the foregoing, any Plan Advisory Committee member may file appropriate pleadings
with the Bankruptcy Court to resolve any disputes arising from the incurrence of costs and
35
expenses that are likely to disproportionately benefit any Beneficiary in violation of the
fiduciary duties of the Plan Administrator set forth in Section 1.02 of the Plan Administrator
Agreement.
K. Injunctions, Exculpation, and Releases.3
87. Subject to the occurrence of the Effective Date and pursuant to applicable law, including
§§ 105(a) and 1123(b)(3) and (6) of the Bankruptcy Code, the discharge of the Debtors and any of
their assets or properties, the releases, the injunction provisions and the exculpation provisions
each as provided in Article XII of the Plan, are (a) deemed incorporated in this Confirmation Order
as if set forth in full herein, (b) hereby approved and authorized in their entirety as an integral
part of the Plan and (c) fair, equitable, reasonable and in the best interests of the Debtors,
their Estates and Creditors. Except as otherwise specifically provided in the Plan and except as
may be necessary to enforce the provisions of the Plan or remedy a breach of the Plan, the Debtors
and all Persons shall be precluded and permanently enjoined on and after the Effective Date from
(i) commencing or continuing in any manner any Claim, action, employment of process, or other
proceeding of any kind with respect to any Claim, Interest, Cause of Action or any other right or
Claim against the Liquidating Debtors, which they possessed or may possess prior to the Effective
Date, (ii) the enforcement, attachment, collection, offset, recoupment or recovery by any manner or
means of any judgment, award, decree, order or otherwise with respect to any Claim, Interest, Cause
of Action or any other right or Claim against the Liquidating Debtors, which they possessed or may
possess prior to the Effective Date, (iii) creating, perfecting or enforcing any encumbrance of any
kind with respect to any Claim, Interest, Cause of Action or any other right or Claim against the
Liquidating Debtors, which they possessed or may possess prior to the Effective Date and (iv)
asserting any Claims, Interests or Causes of Action that are satisfied, discharged, released or
subject to exculpation hereby or by the Plan.
3 | The provisions of this Section K (Injunctions, Exculpation, and Releases) and Paragraphs 87 through 91 of this Confirmation Order are expressly subject to the provisions of Paragraph 131 hereof (Resolution of Objection of Tennenbaum). |
36
88. Exculpation. Except as otherwise specifically provided in the Plan, none of (a)
the Debtors and the Liquidating Debtors; (b) the professionals, consultants and advisors of any of
the Debtors that were retained, employed or otherwise working with the Debtors on or after the
Petition Date; (c) the Creditors Committee and the Plan Advisory Committee and, solely in their
respective capacities as members or representatives of the Creditors Committee and the Plan
Advisory Committee, as applicable, each member thereof; (d) the Plan Administrator; (e) the 8.125%
Notes Indenture Trustee solely in its capacity as such; (f) the 3% Unsecured Debentures Indenture
Trustee solely in its capacity as such; and (g) each of such parties respective agents, directors,
officers, managers, members, employees, advisors, accountants, investment bankers, consultants,
attorneys and other representatives of any of the foregoing solely in their respective capacities
as such (collectively, the Protected Parties), shall have or incur, and each such party
is hereby exculpated from, any liability (whether arising under contract, tort, or federal or state
securities laws, whether known or unknown, foreseen or unforeseen, then existing or hereafter
arising, in law, equity, or otherwise) to, or be subject to any right of action by, any Holder of a
Claim or Interest or any other party in interest, or (with respect to such Claims or Interests) any
of their respective agents, affiliates, or any of their successors or assigns, for any prepetition
or postpetition act or omission taken or not taken (as the case may be) or any other transaction,
event, or occurrence in any way connected with, relating to, or arising out of, (i) the Debtors
Chapter 11 Cases and the commencement and administration thereof; (ii) the Disclosure Statement,
the Plan, any documents related thereto, and all transactions contemplated thereby; (iii) the
pursuit of Confirmation and the approval of the Disclosure Statement (including, without
limitation, the formulation, negotiation, preparation, dissemination, implementation, or
administration of any of the foregoing documents, or the solicitation of votes in connection
therewith), or any orders of the Bankruptcy Court related thereto; (iv) the administration and
Consummation of the Plan and the occurrence of the Effective Date; (v) the property to be
distributed under, or sold in the manner contemplated by, the Plan or any other Final Order; (vi)
any contract, instrument, release, or other agreement or document created or entered into in
connection
37
with the Plan or any Plan Document; (vii) the Holdco / Opco Settlement and the Opco
Restructuring; or (viii) any other act taken or omitted to be taken in connection with, or in
contemplation of, any of the restructuring or other transactions contemplated by the Plan or any
document related thereto, in each instance, except any act, omission, transaction, agreement, event
or other occurrence determined by a Final Order to constitute fraud, willful misconduct, or gross
negligence (the Precluded Claims).
89. Permanent Injunction. The Plan provides, among other things, that any Person
(other than the Debtors, the Liquidating Debtors, the Creditors Committee, the Estates or the Plan
Administrator) who has held, holds, or may hold a Claim against or Interest in the Debtors, the
Estates, or the Liquidating Debtors, or any Claim against or Interest in any Person (including any
Debtor) for which the Debtors or the Liquidating Debtors are or may be directly liable or
indirectly liable by way of contribution, indemnity (including an obligation to pay defense costs
under the Plan or otherwise) or otherwise is, with respect to any such Claim or Interest,
permanently enjoined from and after the Effective Date from taking any of the following actions (a)
asserting, commencing, conducting, or continuing in any manner, directly or indirectly, any suit,
action or other proceeding of any kind (including, without limitation, any proceeding in a
judicial, arbitral, administrative or other forum) against or affecting any of the Debtors, the
Estates, or the Liquidating Debtors on account of any Claim for which the Debtors or Liquidating
Debtors are directly or indirectly liable by way of contribution, indemnity or otherwise, (b)
enforcing, levying, attaching (including, without limitation, any prejudgment attachment),
collecting or otherwise recovering by any manner or means, whether directly or indirectly, any
judgment, award, decree or order against any of the Debtors, the Estates, or the Liquidating
Debtors; (c) creating, perfecting or otherwise enforcing in any manner, directly or indirectly, any
Lien of any kind against the Debtors, the Estates, or the Liquidating Debtors on account of any
Claim for which any of the Debtors or Liquidating Debtors are or may be directly or indirectly
liable by way of contribution, indemnity or otherwise; (d) asserting any right of setoff or
subrogation of any kind, directly or indirectly, against any obligation due to any of the Debtors,
the Estates, or the Liquidating Debtors, on account of any Claims for which any of the Debtors or
Liquidating Debtors
38
are or may be directly or indirectly liable by way of contribution, indemnity or otherwise;
(e) acting or proceeding in any manner, in any place whatsoever, that does not conform to or comply
with the provisions of the Plan; and (f) prosecuting, commencing, continuing or otherwise asserting
any right, Claim or cause of action released pursuant to the Plan or that is otherwise inconsistent
with the provisions of the Plan. Any Person injured by any willful violation of such injunction
shall recover actual damages, including costs and attorneys fees, and, in appropriate
circumstances, may recover punitive damages, from the willful violator(s). Notwithstanding the
foregoing, Holders of Disputed Claims are not enjoined from and shall retain all rights to defend
or prosecute such Disputed Claims in the Bankruptcy Court, including, without limitation, the right
to assert affirmative defenses, setoff, or recoupment, if applicable.
90. Releases by the Debtors and their Estates. Except as otherwise expressly provided
in the Plan and subject to the terms of any prior Bankruptcy Court orders, in consideration of,
among other things, the Distributions and the obligations of the Debtors contemplated hereby, and
the other contracts, instruments, releases, agreements, waivers, and documents to be executed and
delivered in connection with the Plan, and in consideration of the efforts of the following parties
to facilitate the implementation of the transactions contemplated by the Plan, each of the Debtors
and any Person or Entity seeking to exercise rights or claims on behalf of the Debtors and their
Estates shall be deemed to have conclusively, absolutely, unconditionally, irrevocably, and
forever, waived, released and discharged the Protected Parties from all claims, obligations, suits,
damages, demands, debts, rights, or Causes of Action the Debtors or the Liquidating Debtors may
have against the Protected Parties of whatever kind or nature, whether liquidated or unliquidated,
fixed or contingent, matured or unmatured, known or unknown, in law or equity, that are based in
whole or in part on any act, omission, transaction, event, or other occurrence taking place on or
prior to the Effective Date, relating to or in connection with the Debtors, the Chapter 11 Cases,
the Holdco / Opco Settlement and the Opco Restructuring, the conduct of the Debtors business, or
the Plan; provided, however, that the foregoing release (i) will have no effect on the liability of
any Protected Parties arising from an act,
39
omission, transaction, agreement, event or other occurrence determined by a Final Order to
constitute fraud, willful misconduct, or gross negligence; and (ii) will not constitute a release
or waiver of any defense available to the Debtors or the Liquidating Debtors in connection with any
Disputed Claim (including Administrative Claims) asserted against the Debtors, their Estates, or
the Liquidating Debtors by any Protected Party. The releases described herein shall be binding
upon all Persons. Accordingly, all Persons shall hereby be enjoined from commencing or continuing
any action, employment of process, or act to collect, offset, or recover any such claim that could
be brought on behalf of or in the name of the Debtors, the Liquidating Debtors or their Estates
including any derivative claims asserted or assertable on behalf of the Debtors, the Liquidating
Debtors or their Estates. Notwithstanding anything herein to the contrary, in any proceeding
brought by the Creditors Committee or any other person or entity on behalf of the Debtors or
Liquidating Debtors (an Estate Representative) against any individuals serving or having
served as directors, officers, employees, agents or representatives of the Debtors during the
pendency of the Chapter 11 Cases (the Present Management), the Estate Representative will
not seek any recovery in excess of the dollar amount of the policy limits, as such limits have been
actually reduced from time to time by defense costs or other claims made against such policies, of
any available directors and officers liability insurance; nothing contained herein shall relieve
the Present Management from any liability on a claim for any amount less than the policy limits of
any available directors and officers liability insurance. However, should there be no directors
and officers liability insurance (including without limitation any deductible or retention)
available with respect to a claim, the Estate Representative will not seek recovery on that claim
against the Present Management. If the Estate Representative obtains a judgment on a claim against
any of the Debtors former officers, directors, employees, agents or representatives and such
former officer, director, employee, agent or representative obtains a Final Order against any of
the Present Management by reason of contribution, indemnification or other claim related to such
claim (a D&O Contribution Claim), the Estate Representative will reduce its judgment
against such former officer, director, employee, agent or representative by the amount of such D&O
Contribution Claim.
40
91. Releases by Holders of Claims and Interests. Except as otherwise expressly
provided in the Plan, in consideration of, among other things, the Distributions and the
obligations of the Debtors contemplated hereby, and the other contracts, instruments, releases,
agreements, waivers, and documents to be executed and delivered in connection with the Plan, and in
consideration of the efforts of the following parties to facilitate the implementation of the
transactions contemplated by the Plan, all Holders of Claims and Interests who vote in favor of the
Plan, for themselves and on behalf of their respective successors and assigns, shall be deemed to
have conclusively, absolutely, unconditionally, irrevocably, and forever, released, and discharged
the Protected Parties from any and all claims, interests, obligations, rights, suits, damages,
losses, costs and expenses, actions, causes of action, remedies, and liabilities of any kind or
character whatsoever, including any derivative claims asserted or assertable on behalf of the
Debtors, the Liquidating Debtors or their Estates, or any claims arising out of, or relating to,
any alleged fiduciary or other duty, any alleged violation of any federal or state securities law
or any other law relating to creditors rights generally, whether known or unknown, foreseen or
unforeseen, liquidated or unliquidated, suspected or unsuspected, matured or unmatured, fixed or
contingent, existing or hereafter arising, in law, equity or otherwise, that such Entity ever had,
now has or hereafter can, shall or may have, or otherwise would have been entitled to assert
(whether individually or collectively or directly or derivatively), against any Protected Party
arising from or relating to, directly or indirectly, in whole or in part, the Debtors, the Debtors
restructuring, the operation of or administration of the Debtors business and assets, the Chapter
11 Cases, the purchase, sale or rescission of the purchase or sale of any security of the Debtors,
the subject matter of, or the transactions or events giving rise to, any Claim or Interest that is
treated in the Plan, the business or contractual arrangements among any two or more of any Debtor
or any Affiliate thereof, any Liquidating Debtor or any Protected Party (and the acts or omissions
of any other Protected Party in connection therewith), the restructuring of Claims and Interests
prior to or in the Chapter 11 Cases, the Holdco / Opco Settlement and the Opco Restructuring, the
negotiation, formulation, or preparation of the Plan, Disclosure Statement, or related agreements,
instruments, or other documents, or any
41
other act or omission, transaction, agreement, event, or other occurrence, including the
management and operation of the Debtors, taking place on or before the Effective Date.
Notwithstanding the foregoing, nothing in Section 12.09 of the Plan shall release any Protected
Party from liability for any act, omission, transaction, agreement, event or other occurrence
determined by a Final Order to constitute fraud, willful misconduct, or gross negligence. Further
notwithstanding the foregoing, nothing in Section 12.09 of the Plan shall be deemed to assert or
imply any admission of liability on the part of any of the parties released hereby.
L. Assumption and Rejection of Executory Contracts and Unexpired Leases.
92. On the Effective Date, and to the extent permitted by applicable law, all of the Debtors
executory contracts and unexpired leases will be rejected unless such executory contract or
unexpired lease: (a) is identified on the Assumed Contract Schedule, as may be amended from time to
time, as an executory contract or unexpired lease being assumed pursuant to the Plan; (b) is the
subject of a motion to assume or reject filed on or before the Confirmation Hearing; (c) has been
previously rejected or assumed; or (d) previously expired or terminated pursuant to its own terms
before the Effective Date.
93. This Confirmation Order will constitute an order of the Bankruptcy Court approving,
pursuant to Bankruptcy Code § 365, as applicable, (a) the rejection of each executory contract or
unexpired lease as set forth herein, as of the Confirmation Date; or (b) the assumption of each
executory contract or unexpired lease the Assumed Contract Schedule (as such may be amended prior
to the Effective Date), as of and conditioned on the occurrence of the Effective Date.
94. Except as otherwise provided under the Plan, any Cure Payment shall be effected or
otherwise satisfied by prompt payment of such monetary amount as contemplated by Bankruptcy Code §
365(b)(1)(A) or as otherwise agreed to by the parties. The Assumed Contract Schedule sets forth
the Cure Payment for each executory contract and unexpired lease to be assumed by the Debtors. If
the non-Debtor party to the executory contract or unexpired lease objects to the proposed Cure
Payment, such non-Debtor party must file an objection with the Bankruptcy Court to such Cure
Payment on or before the Plan Voting Deadline; failure to timely file such objection shall be
deemed acceptance by such non-
42
Debtor party of the Cure Payment for all purposes. If there is a dispute regarding (a) the
timing of any Cure Payment required in order to meet the promptness requirement of § 365(b)(1), (b)
the nature, extent or amount of any cure requirement, (c) the Liquidating Debtors ability or the
ability of the Debtors assignees to provide adequate assurance of future performance (within the
meaning of Bankruptcy Code § 365) under the contract or lease to be assumed, or (d) any other
matter pertaining to assumption, subject to the provisions of the Plan, Cure Payment will occur on
the next occurring Distribution Date following the entry of a Final Order resolving the dispute and
approving the assumption or assumption and assignment, as the case may be.
95. Unless otherwise provided by an order of the Bankruptcy Court approving the rejection of
an executory contract or unexpired lease, if the rejection of an executory contract or unexpired
lease gives rise to a Claim by the non-Debtor party to such executory contract or unexpired lease,
such Claim shall be forever barred and shall not be enforceable against the Debtors, their Estates,
the Liquidating Debtors, the Plan Administrator or any of their respective assets or property,
unless a proof of Claim is Filed and served on the Debtors or Plan Administrator, as applicable, no
later than thirty days after the later of the (i) filing of a notice of the occurrence of the
Effective Date or (ii) entry of an order authorizing the rejection of such executory contract or
unexpired lease. All Allowed Claims arising from the rejection of the Debtors executory contracts
and unexpired leases shall be classified as General Unsecured Claims or Qualified Investor Claims,
as applicable, and shall be treated in accordance with the provisions of the Plan; provided,
however, if the Holder of an Allowed Claim (other than Maritime Lien Claims) for rejection damages
has an unavoidable security interest in any Collateral other than the assets that are proposed to
be distributed to all other Holders of Claims under the Plan (the Other Collateral) to
secure obligations under such rejected executory contract or unexpired lease, the Allowed Claim for
rejection damages shall be treated as an Other Secured Claim to the extent of the value of such
Holders interest in such Other Collateral, with the deficiency, if any, treated as a General
Unsecured Claim or Qualified Investor Claim, as applicable.
43
M. Bar Dates for Certain Claims.
96. Administrative Claims; Substantial Contribution Claims; Superpriority Administrative
Claims. This Confirmation Order establishes a bar date for filing of all Administrative Claims,
including Substantial Contribution Claims and Superpriority Administrative Claims (but not
including Professional Fee Claims, Claims for the expenses of the members of the Creditors
Committee, Claims for United States Trustee fees under 28 U.S.C. § 1930, any applicable court fees,
Claims for the fees and expenses of the 8.125% Notes Indentures Trustee and the 3% Unsecured
Debentures Indenture Trustee, and Administrative Claims in section (b) or (c) below (the
Excluded Administrative Claims)), which date will be forty-five days after the Effective
Date (the Administrative Claims Bar Date). Holders of asserted Administrative Claims,
Substantial Contribution Claims and Superpriority Administrative Claims, other than Excluded
Administrative Claims, must submit proofs of such Claims on or before such Administrative Claims
Bar Date or forever be barred from doing so. For the avoidance of doubt, any claims for fees,
costs or expenses shall be treated as an asserted Substantial Contribution Claim and subject to
objection, a further order of this court prior to Allowance, and the applicable provisions
regarding Substantial Contribution Claims as set forth in this Order and the Plan. A notice
prepared by the Debtors or Liquidating Debtors will set forth such date and constitute notice of
this Administrative Claims Bar Date. The Liquidating Debtors or Plan Administrator, as applicable,
shall have forty-five days (or such longer period as may be allowed by order of the Bankruptcy
Court) following the Administrative Claims Bar Date to review and object to such Administrative
Claims before a hearing for determination of allowance of such Claims. Notwithstanding the
foregoing or any other provision of this Order, Tennenbaum (defined below) shall not be required to
file any request or application for payment of the Tennenbaum Administrative Claim (defined below);
provided, however, that Tennenbaum must provide a one-line, summary invoice to the Debtors for the
Debtors accounting purposes, with a copy to the 8.125% Notes Indenture Trustee and Creditors
Committee referencing its entitlement to be paid pursuant to the terms of this Confirmation Order
prior to the payment of any portion of the Tennenbaum Administrative Claim.
44
97. Professional Fee Claims. All final requests for Professional Fee Claims pursuant
to Bankruptcy Code §§ 327, 328, 330, 331, 363, 503(b) or 1103 for services rendered to or on behalf
of the applicable Debtors or the Creditors Committee prior to the Effective Date (other than
Substantial Contribution Claims under Bankruptcy Code § 503(b)(4)) must be filed and served on the
Debtors, Liquidating Debtors or Plan Administrator, as applicable, and their counsel no later than
thirty days after the Effective Date, unless otherwise ordered by the Bankruptcy Court. The Court
will schedule an omnibus hearing on the Professional Fee Claim applications described in this
Paragraph upon notice to parties-in-interest. Objections to applications of such Professionals or
other Entities for compensation or reimbursement of expenses must be filed and served on the
Debtors, Liquidating Debtors or Plan Administrator, as applicable, and their counsel and the
requesting Professional or other Entity no later than seven days prior to any hearing scheduled on
such Professional Fee Claim applications (or such longer period as may be allowed by order of the
Bankruptcy Court).
98. Trustee Claims. All requests for payment of the Administrative Claims of the
8.125% Notes Indenture Trustee and the 3% Unsecured Debentures Indenture Trustee shall be provided
in writing to the Debtors, the Creditors Committee, 8.125% Notes Indenture Trustee and the 3%
Unsecured Debentures Indenture Trustee prior to the Effective Date, and the Liquidating Debtors,
the Plan Administrator and the Plan Advisory Committee after the Effective Date, along with copies,
redacted for privilege, of all relevant invoices and other applicable documentation. If none of
the above parties lodges an objection to such payment request within 15 days of receipt of the
request, the Debtors or the Liquidating Debtors, as applicable, are authorized to pay the amounts
set forth in the payment request without further notice to any party or further order of the
Bankruptcy Court.
N. Post-Confirmation Notices and Bar Dates.
99. Notice of Entry of the Confirmation Order. In accordance with Bankruptcy Rules
2002 and 3020(c), within ten business days of the date of entry of the Confirmation Order, the
Debtors shall serve a notice of Confirmation by United States mail, first class postage prepaid, by
hand, or by overnight courier service to all parties having been served with the notice of
Confirmation Hearing; provided,
45
however, that no notice or service of any kind shall be required to be mailed or made
upon any party to whom the Debtors mailed a notice of Confirmation Hearing, but received such
notice returned marked undeliverable as addressed, moved, left no forwarding address or
forwarding order expired, or similar reason, unless the Debtors have been informed in writing by
such party. Mailing of the notice of Confirmation in the time and manner set forth in this
Paragraph shall be good and sufficient notice under the particular circumstances and in accordance
with the requirements of Bankruptcy Rules 2002 and 3020(c), and no other or further notice is
necessary.
100. The notice of Confirmation shall have the effect of an order of the Bankruptcy Court,
shall constitute sufficient notice of the entry of the Confirmation Order to such filing and
recording officers, and shall be a recordable instrument notwithstanding any contrary provision of
applicable non-bankruptcy law.
101. Notice of Effective Date. On or before ten (10) days after the occurrence of the
Effective Date, the Solicitation Agent shall mail or cause to be mailed to all Holders of Claims
and Interests via first class United States mail, postage prepaid, a notice that informs such
Holders of (a) the entry of the Confirmation Order, (b) the occurrence of the Effective Date, and
(c) such other matters as the Plan Administrator deems appropriate or as may be ordered by the
Bankruptcy Court.
102. Non-Occurrence of Effective Date. If Confirmation does not occur, or if the
Effective Date does not occur on or prior to August 31, 2011, unless such date is extended by the
Debtors with the consent of the 8.125% Notes Indenture Trustee and the Creditors Committee, which
consent shall not be unreasonably withheld, (a) the Plan shall be null and void in all respects,
(b) settlements or compromises embodied in the Plan (including the fixing or limiting to an amount
certain of any Claim or Class of Claims), assumptions or rejections of executory contracts or
unexpired leases affected by the Plan, and any documents or agreements executed pursuant to the
Plan shall be deemed null and void and (c) nothing contained in the Plan or the Disclosure
Statement shall (i) constitute a waiver or release of any Claims by or against, or any Interests
in, the Debtors or any other Person, (ii) prejudice in any manner the rights of
46
the Debtors or any other Person, (iii) constitute an admission of any sort by the Debtors or
any other Person or (iv) be construed as a finding of fact or conclusion of law with respect
thereto.
O. Exemption from Securities Laws.
103. Pursuant to § 1125(e) of the Bankruptcy Code, the Debtors transmittal of the Plan
solicitation materials as set forth herein, their solicitation of acceptances of the Plan and the
Liquidating Debtors issuance and Distribution of the New TMS Interest, to the extent they are
securities, pursuant to the Plan are not and will not be governed by or subject to any otherwise
applicable law, rule or regulation governing the solicitation or acceptance of a plan of
liquidation or the offer, issuance, sale or purchase of securities.
104. Pursuant to Bankruptcy Code § 1145, the issuance of the New TMS Interest(s) shall be
exempt from the registration requirements of the Securities Act, as amended, and any other
applicable law requiring registration prior to the offering, issuance, Distribution or sale of
securities; provided, however, that if the issuance of the New TMS Interest(s) do not qualify for
an exemption under Bankruptcy Code § 1145, the New TMS Interest(s) will be issued in reliance upon
another available exemption from the registration requirements of the Securities Act. All
securities issued pursuant to the Plan will be deemed issued as of the Effective Date regardless of
the date actually distributed.
P. | Exemptions from Taxation. |
105. Pursuant to § 1146(a) of the Bankruptcy Code, any transfer from a Debtor to a Liquidating
Debtor or to any Entity pursuant to, in contemplation of, or in connection with the Plan or
pursuant to: (a) the issuance, Distribution, transfer or exchange of any debt, equity security, or
other interest in the Debtors or the Liquidating Debtors, (b) the creation, modification,
consolidation or recording of any mortgage, deed of trust, or other security interest, or the
securing of additional indebtedness by such or other means, (c) the making, assignment or recording
of any lease or sublease or (d) the making, delivery or recording of any deed or other instrument
of transfer under, in furtherance of, or in connection with, the Plan, including any deeds, bills
of sale, assignments or other instrument of transfer executed in connection with any transaction
arising out of, contemplated by, or in any way related
47
to the Plan, shall not be subject to any document recording tax, stamp tax, conveyance fee,
intangibles or similar tax, mortgage tax, real estate transfer tax, mortgage recording tax, Uniform
Commercial Code filing or recording fee or other similar tax or governmental assessment, and the
appropriate state or local governmental officials or agents shall forego the collection of any such
tax or governmental assessment and to accept for filing and recordation any of the foregoing
instruments or other documents without the payment of any such tax or governmental assessment.
Q. | Miscellaneous Provisions. |
106. No Discharge of the Debtors. Pursuant to Bankruptcy Code § 1141(d)(3),
Confirmation will not discharge the Debtors under Bankruptcy Code § 1141 of any debts; provided,
however, upon Confirmation, the occurrence of the Effective Date and the Distributions contemplated
under the Plan, Holders of Claims and Interests may not seek any payment or recourse against the
Debtors, the Liquidating Debtors or the Estates, as applicable, or otherwise be entitled to any
Distribution except as expressly provided in the Plan. Further, the release, exculpation and
injunction provisions set forth in Sections 12.06, 12.07, 12.08 and 12.09 of the Plan shall be
fully enforceable.
107. Retention of Jurisdiction. The Bankruptcy Court shall retain jurisdiction, to the
maximum extent permitted by the Bankruptcy Code and other applicable law and notwithstanding the
prior closure of any of the Debtors Chapter 11 Cases, of all matters arising out of, and related
to, the Chapter 11 Cases and the Plan pursuant to, and for the purposes of, §§ 105(a) and 1142 of
the Bankruptcy Code as more fully outlined in Article X of the Plan.
108. Withholding and Reporting Requirements. In connection with the consummation of
the Plan and all instruments issued in connection herewith and distributed thereunder, any party
issuing any instrument or making any Distribution under the Plan shall comply with all applicable
withholding and reporting requirements imposed by any federal, state, or local taxing authority,
and all Distributions under the Plan shall be subject to any such withholding and reporting
requirements. Notwithstanding the above, each Holder of an Allowed Claim or Interest that is to
receive a Distribution under the Plan shall have the sole and exclusive responsibility for the
satisfaction and payment of any tax obligations imposed on such
48
Holder by any governmental unit, including income, withholding and other tax obligations, on
account of such Distribution. Any party issuing any instrument or making any Distribution under the
Plan has the right, but not the obligation, to not make a Distribution until such Holder has made
arrangements satisfactory to such issuing or disbursing party for payment of any such tax
obligations.
109. Payment of Fees to United States Trustee. On the Effective Date, all fees payable
to the United States Trustee shall be paid as and when due by the Debtors, the Liquidation Debtors
or the Plan Administrator, as applicable, and shall be considered a reasonable expense of the
Liquidating Debtors.
110. Binding Effect. Notwithstanding Bankruptcy Rules 3020(e), 6004(g), 7062 or
otherwise, upon the occurrence of the Effective Date, the terms of the Plan and the exhibits
thereto shall be immediately effective and enforceable and deemed binding upon the Debtors, the
Liquidating Debtors and any and all Holders of Claims or Interests (irrespective of whether such
Claims or Interests are deemed to have accepted the Plan), all parties subject to the settlements,
compromises, releases, discharges and injunctions described in the Plan or herein, each party
acquiring property under the Plan and any and all non-Debtor parties to executory contracts and
unexpired leases with the Debtors. The rights, benefits and obligations of any party named or
referred to in the Plan shall be binding on, and shall inure to the benefit of any heir, executor,
administrator, successor or assign, affiliate, officer, director, agent, representative, attorney,
beneficiaries or guardian, if any, of each such party.
111. Dissolution of Creditors Committee. Except as set forth below, on the Effective
Date, the Creditors Committee shall cease operating and dissolve, and other than with respect to
its duty to maintain the confidentiality of protected, confidential or commercially sensitive
information in accordance with any applicable agreements, orders of the Bankruptcy Court or the
Creditors Committee by-laws (which duty shall continue), the Creditors Committee members shall
have no further duties, responsibilities and obligations in connection with the Chapter 11 Cases;
provided, however, that the Creditors Committee shall exist and its Professionals
shall be retained and, to the extent Allowed by the Court, their Professional Fees shall be paid
with respect to (a) the preparation of their applications for Professional Claims, (b) responding
to any objections to such applications, whether formal or informal,
49
and attendance at any hearings with respect to such
applications, (c) reviewing, and if appropriate, preparing and prosecuting objections to
Professional Claims of other Professionals, whether formal or informal and attendance at any
hearings with respect to such objections; and (d) defending against or otherwise participating in
any challenge to the provisions of the Plan or the Confirmation Order, including appeals. Other
than as set forth herein and in the Plan, on the Effective Date, the retention and employment of
the Creditors Committees Professionals shall terminate without further order of the Bankruptcy
Court.
112. Reservation of Rights. Prior to the Effective Date, none of the filing of the
Plan, any statement or provision contained herein or the taking of any action by the Debtors, the
Creditors Committee, the 8.125% Notes Indenture Trustee or the 3% Unsecured Debentures Indenture
Trustee with respect to the Plan shall be or shall be deemed to be an admission or waiver of any
rights of the foregoing parties of any kind, including with respect to the Holders of Claims or
Interests or as to any treatment or classification of any executory contract or unexpired lease.
113. Terms of Injunctions or Stays. All temporary injunctions or stays provided for
in the Chapter 11 Cases under Bankruptcy Code §§ 105 or 362 or otherwise, and in existence on the
Confirmation Date (excluding any injunctions or stays contained in the Plan or Confirmation Order),
shall remain in full force and effect until all property of the Debtors and the Liquidating Debtors
has been distributed, the Liquidating Debtors have been dissolved, the Plan Administrator Agreement
has terminated and the Bankruptcy Court has entered an order closing the Chapter 11 Cases. All
injunctions or stays contained in the Plan or Confirmation Order shall remain in full force and
effect in accordance with their terms. All permanent injunctions in existence on the Effective
Date shall remain in full force and effect as provided in the order imposing such permanent
injunction.
114. Waiver or Estoppel. Subject to the occurrence of the Effective Date, each Holder
of a Claim or an Interest shall be deemed to have waived any right to assert any argument,
including the right to argue that its Claim or Interest should be Allowed in a certain amount, in a
certain priority, secured or not subordinated by virtue of an agreement made with the Debtors or
their counsel, or any other Person, if
50
such agreement was not disclosed in the Plan, the Disclosure Statement or papers filed with
the Bankruptcy Court prior to the Confirmation Date.
115. References to Plan Provisions. The failure specifically to include or reference
any particular provision of the Plan in this Confirmation Order shall not diminish or impair the
effectiveness of such provision, it being the intent of the Bankruptcy Court that the Plan be
confirmed in its entirety (except as otherwise modified in this Confirmation Order).
116. Reversal. If any or all of the provisions of this Confirmation Order are
hereafter reversed, modified or vacated by subsequent order of this Bankruptcy Court or any other
court, such reversal, modification or vacatur shall not affect the validity of the acts or
obligations incurred or undertaken under or in connection with the Plan prior to the Debtors, the
Creditors Committees, the 8.125% Notes Indenture Trustees or the 3% Unsecured Debentures
Indenture Trustees, as applicable, receipt of written notice of any such order. Notwithstanding
any such reversal, modification or vacatur of this Confirmation Order, any such act or obligation
incurred or undertaken pursuant to, and in reliance on, this Confirmation Order prior to the
effective date of such reversal, modification or vacatur shall be governed in all respects by the
provisions of this Confirmation Order and the Plan or any amendments or modifications thereto.
117. Applicable Non-Bankruptcy Law. Pursuant to Bankruptcy Code §§ 1123(a) and
1142(a), the provisions of this Confirmation Order, the Plan or any amendments or modifications
thereto shall apply and be enforceable notwithstanding any otherwise applicable non-bankruptcy law.
118. Governing Law. Unless a rule of law or procedure is supplied by federal law
(including the Bankruptcy Code and Bankruptcy Rules), the laws of the State of Delaware without
giving effect to the principles of conflicts of law thereof, shall govern the construction and
implementation of the Plan and any agreements, documents, and instruments executed in connection
with the Plan (except as otherwise set forth in those agreements, in which case the governing law
of such agreement shall control) as well as corporate governance matters with respect to the
Liquidating Debtors; provided, however, that corporate governance matters relating to the Debtors
or Liquidating Debtors, as applicable, not organized
51
under Delaware law shall be governed by the laws of the state of organization of such Debtor
or Liquidating Debtor.
119. Modification of the Plan Prior to Effective Date. Subject to certain
restrictions and requirements set forth in § 1127 of the Bankruptcy Code and Bankruptcy Rule 3019,
after the Confirmation Date and prior to the Effective Date, the Debtors may, in consultation with
the Creditors Committee, the 8.125% Notes Indenture Trustee and the 3% Unsecured Debentures
Indenture Trustee, (a) amend or modify the Plan one or more times as may be necessary to carry out
the purposes and effects of the Plan so long as such amendment(s) do not materially and adversely
affect the treatment of any Holder of a Claim or Interest under the Plan and (b) institute
proceedings in the Bankruptcy Court to remedy any defect or omission or reconcile any
inconsistencies in the Plan, the Disclosure Statement or this Confirmation Order. Any such
modification or supplement shall be considered a modification of the Plan and shall be made in
accordance with Article IX of the Plan. Entry of the Confirmation Order means that all
modifications or amendments to the Plan since the solicitation thereof are approved pursuant to §
1127(a) of the Bankruptcy Code and do not require additional disclosure or resolicitation under
Bankruptcy Rule 3019. Entry of the Confirmation Order means that (i) none of the modifications
made since the commencement of solicitation, including, without limitation, the agreements to
provide the recoveries to the objecting parties as set forth in Paragraphs 131 through 134 of this
Confirmation Order, adversely changes the treatment of the claim of any Holder of a Claim or
Interest under the Plan., (ii) all such modifications are deemed accepted by all creditors and
equity security holders who have previously accepted the Plan, and (iii) adequate notice under the
circumstances was provided to any Holder of a Claim or Interest under the plan, all in accordance
with Bankruptcy Rule 3019(a). Additionally, none of the modifications to the Plan since the
commencement of solicitation, including, without limitation, the agreements to allow certain Claims
and to provide the recoveries to the objecting parties set forth in Paragraphs 131 through 134 of
this Confirmation Order, causes a material negative impact on the timing, and/or amount of the
consideration projected to be distributed to the various classes of creditors as set
52
forth and estimated in the Plan and Disclosure Statement or renders the Plan nonconfirmable
pursuant to the Final Cash Collateral Order.
120. Effect of Conflict Between Plan and Confirmation Order. To the extent of any
inconsistency between the terms of the Plan and the terms of this Confirmation Order, the terms of
this Confirmation Order shall govern and control.
121. Authorization to Consummate. The Debtors are authorized to consummate the Plan
at any time after the entry of the Confirmation Order subject to satisfaction or waiver (by the
required parties) of the conditions precedent to the Effective Date set forth in Article VIII of
the Plan.
122. Final Confirmation Order. This Confirmation Order is a final order and the
period in which an appeal must be filed shall commence upon the entry hereof.
123. Severability of Plan Provisions. Each term and provision of the Plan, as it may
be altered or interpreted, is valid and enforceable pursuant to its terms.
124. Nonseverable and Mutually Dependent. The provisions of this Confirmation Order
are nonseverable and mutually dependent. This Confirmation Order constitutes a judicial
determination that each term and provision of the Plan, as it may have been altered, modified or
interpreted at the Confirmation Hearing, is valid and enforceable in accordance with its terms.
125. Recordable Form. This Confirmation Order shall be, and hereby is, declared to be
in recordable form and shall be accepted by any filing or recording officer or authority of any
applicable Governmental Unit for filing and recording purposes without further or additional
orders, certifications or other supporting documents. Further, the Bankruptcy Court authorizes the
Liquidating Debtors, the Trustee and the Plan Administrator to file a memorandum of this
Confirmation Order in any appropriate filing or recording office as evidence of the matters herein
contained.
126. Waiver of Stay. Notwithstanding Bankruptcy Rules 3020(e), 6004(h) and 6006(d),
the Debtors and all other parties to transactions contemplated by the Plan shall be authorized to
consummate the Plan and the transactions and transfers contemplated thereby immediately after entry
of this Confirmation Order.
53
127. Amendments to the Plan.
a. The definition of Secured and Administrative Claim Shortfall set forth in Section
1.02(129) shall be replaced with the following:
Secured and Administrative Claim Shortfall means any Allowed Priority Amount that must be paid in full under the Plan and is satisfied through monetization of the Opco Equity and Warrants in the event proceeds from other assets of the Liquidating Debtors are insufficient to fully satisfy such claims. |
b. The definition of Unsecured Distribution Assets set forth in Section 1.02(137)
shall be replaced with the following:
Unsecured Distribution Assets means (a) the Initial Cash Balance and (b) the Opco Equity and Warrants. |
128. Resolution of Objection of Harris County and Montgomery County, Texas [Docket No.
1401]. Any Allowed Other Secured Claims of Harris County, et al. and Montgomery County
(collectively, the Texas Taxing Authorities) that are due and owing as of the
Distribution Date shall be paid on, or as soon as reasonably practicable after, the Distribution
Date. Any liens securing the Allowed Other Secured Claims of the Texas Taxing Authorities shall
retain the same force and effect they have now and shall retain the priority they otherwise hold
under state law, until such Allowed Other Secured Claims are paid in full. Any taxes due to the
Texas Taxing Authorities for the 2011 tax year shall be paid in the ordinary course, prior to date
on which such payment would be delinquent under applicable law.
129. Resolution of Objection of Light 125 James West LLC. Notwithstanding the
definition of Claims Objection Deadline set forth in Section 1.02(32) of the Plan, the Debtors,
Liquidating Debtors and Plan Administrator, as applicable, shall have 60 days from the Effective
Date to object to any asserted Claims filed by Light 125 James West LLC.
130. Resolution of Objection of the Internal Revenue Service [Docket No. 1457].
Notwithstanding any provision to the contrary in the Plan, the Order confirming the Plan and any
implementing Plan documents, nothing shall: (a) affect the rights, if any, of the Internal Revenue
Service
54
(the IRS) and the Debtors to assert setoff and/or recoupment against the Debtors and
the IRS, respectively, and such rights are expressly preserved; (b) affect the ability of the IRS
to pursue any non-debtors to the extent allowed by non-bankruptcy law for any liabilities that may
be related to any federal tax liabilities owed by the Debtors or the Debtors estates; or (c)
require the IRS to file a claim for post-petition taxes pursuant to Bankruptcy Code § 503(b)(1)(B),
provided, however, the Debtors reserve all rights with respect to such claims, including under §
505(b) of the Bankruptcy Code. To the extent that the priority claims of the IRS (including any
penalties, interest or additions to tax entitled to priority under the Bankruptcy Code) are not
paid in full in cash on the Effective Date, interest shall accrue on such priority claims at the
rate and method set forth in 26 U.S.S. §§ 6621 and 6622. Moreover, Article X(M) of the Plan shall
confer jurisdiction, but not exclusive jurisdiction, of the Bankruptcy Court over IRS claims to the
extent allowed by applicable law.
131. Resolution of Objection of Tennenbaum.
a. Claim Allowance. In full and complete satisfaction of any and all Claims of any
kind held by Tennenbaum DIP Opportunity Fund, LLC, Tennenbaum Opportunities Partners V, LP, and
Special Value Continuation Partners, LP (collectively, Tennenbaum) against the Debtors,
TMC and Trico Holdco, including without limitation the guaranty Claims asserted by Tennenbaum
against certain of the Debtors, Tennenbaum shall receive (1) a $20 million Allowed unsecured Claim,
which shall be allocated 66.67% to Class 5 and 33.33% to Class 6 on the Initial Distribution Date
such that the economic equivalent of the entirety of the $20 million Claim shall be treated for
Distribution and recovery purposes as if the Claim was a Class 5 Claim under the Plan (the
Tennenbaum Unsecured Claim); and (2) an Allowed Claim entitled to administrative claim
priority pursuant to § 503(b) of the Bankruptcy Code, without the need to file any application or
other submission with the Bankruptcy Court or meet any other reasonableness standard, in the amount
of $250,000 (the Tennenbaum Administrative Claim); provided, however, that Tennenbaum
must provide a one-line, summary invoice to the Debtors for the Debtors accounting purposes, with
a copy to the 8.125% Notes Indenture Trustee and Creditors Committee referencing its entitlement
to be paid pursuant to the terms of this Confirmation Order prior to the
55
payment of any portion of the Tennenbaum Administrative Claim. The Tennenbaum Administrative
Claim shall be payable in full in cash on the Effective Date. Section 5.10 of the Plan shall not
apply to the Tennenbaum Unsecured Claim and the Tennenbaum Administrative Claim. The Tennenbaum
Unsecured Claim and the Tennenbaum Administrative Claim shall not be subject to any challenge,
counterclaim, defense, offset, set-off or reduction.
b. Exculpation. Notwithstanding anything contained in the Plan or this Confirmation
Order to the contrary, the exculpation provisions contained in Section 12.06 of the Plan shall not
apply to any right, Claim, cause of action, set off, offset, counterclaim, cross-claim or defense
asserted or held by any or all of Tennenbaum DIP Opportunity Fund, LLC, Tennenbaum Opportunities
Parties V, LP, and Special Value Continuation Partners, LP (including without limitation any claim
or cause of action that is or could be asserted in any complaint filed by Tennenbaum and pending
against Richard Bachmann, Geoff Jones, Michael Wallace, Rishi Varma, Brett Cenkus and Gerald Gray)
(collectively, the Tennenbaum Rights) to the extent the Tennenbaum Rights relate in any
way to an action or omission by any Protected Party that occurred prior to the Petition Date.
c. Waiver of Claims. Tennenbaum, which hereby warrants and represents that it has not
assigned or transferred any Claims it may hold against any of the Debtors, TMC or Trico Holdco, for
themselves and on behalf of their respective successors and assigns, shall be deemed to have
conclusively, absolutely, unconditionally, irrevocably, and forever released and discharged the
Debtors, TMC and Trico Holdco from any and all existing claims, interests, obligations, rights,
suits, damages, losses, costs and expenses, actions, causes of action, remedies, and liabilities of
any kind or character whatsoever, whether known or unknown, foreseen or unforeseen, liquidated or
unliquidated, suspected or unsuspected, matured or unmatured, fixed or contingent, in law, equity
or otherwise, that such party ever had, now has or hereafter can, shall or may have, or otherwise
would have been entitled to assert (whether individually or collectively or directly) prior to the
Effective Date; provided, however that nothing in this Paragraph 131(c) shall impact or modify any
of the Debtors, TMCs or Trico Holdcos obligations under the Plan or this Confirmation Order.
56
d. Reservation of Tennenbaum Rights Against Non-Debtor Parties. Except as set forth
in the exculpation provision set forth in Section 12.06 of the Plan as modified by Paragraph 131(b)
hereof, notwithstanding anything to the contrary contained in the Plan, this Confirmation Order, or
any document, motion or order filed or entered in connection with or related to the Plan, or any
other motion or order of the Court (including without limitation that certain Motion Pursuant to
Bankruptcy Code Sections 105 and 363 and Bankruptcy Rule 9019 for an Order Authorizing the Debtors
to Compromise Certain Intercompany Claims and Equity Interests [Docket No. 581], the Restructuring
Support Agreement and term sheets referenced in the 9019 Motion and any order entered in connection
with or related to the 9019 Motion) (collectively, the 9019 Documents) nothing in the
Plan, this Confirmation Order or any document, motion or order filed or entered in connection with
or related to the Plan shall (i) operate as or constitute a release, waiver, modification or
interference of any Tennenbaum Right that Tennenbaum holds or may hold against any party or entity
other than the Debtors, TMC and Trico Holdco, all of which Tennenbaum Rights are expressly
preserved or (ii) hinder, delay, affect, obfuscate, release, modify, interfere with or otherwise
impact in any way Tennenbaums ability to fully prosecute or assert the Tennenbaum Rights.
Without limiting the foregoing, and for illustrative purposes only: (i) the provisions of Section
12.07 of the Plan that seek or purport to enjoin any action against a person, party or entity other
than the Debtors, TMC or Trico Holdco, whether that action (a) renders a Debtor or Liquidating
Debtor directly or indirectly liable by way of contribution, indemnity or otherwise, (b) might or
actually indirectly result in a judgment, award, decree or order against a Debtor or Liquidating
Debtor, (c) creates, perfects or otherwise enforces in any manner indirectly any Lien of any kind
against any Debtor or Liquidating Debtor or the Estates on account any Claim for which any of the
Debtors or Liquidating Debtors are or may be directly or indirectly liable by way of contribution,
indemnity or otherwise, (d) involves the assertion of any right of setoff or subrogation of any
kind, directly or indirectly, against any obligation due to any of the Debtors, the Estates, or the
Liquidating Debtors, on account of any Claims for which any of the Debtors or Liquidating Debtors
are or may be directly or indirectly liable by way of contribution, indemnity or otherwise, (d)
involves an action or other
57
proceeding in any manner, in any place whatsoever, that does not conform to or comply with the
provisions of the Plan, or (e) involves the prosecution, commencement, continuation or any other
assertion of any right, Claim or cause of action released pursuant to the Plan; and (ii) except as
otherwise set forth herein, Sections 5.07, 12.07, 12.08, 12.09, 12.10 and 12.11 of the Plan shall
not impact, release, waive, modify or interfere in any way with any Tennenbaum Rights.
e. Jurisdiction. Notwithstanding anything contained to the contrary in the Plan
(including, without limitation, Article X) or this Confirmation Order (including, without
limitation, Paragraph 107), nothing in the Plan or this Confirmation Order shall act to expand or
enlarge the Bankruptcy Courts jurisdiction, if any, over any Tennenbaum Rights or any right,
Claim, cause of action, set off, offset, counterclaim, cross-claim or defense asserted against
Tennenbaum by any party. Tennenbaum reserves all rights to challenge the Bankruptcy Courts
jurisdiction with respect to any Tennenbaum Rights or any right, Claim, cause of action, set off,
offset, counterclaim, cross-claim or defense asserted against Tennenbaum by any party, and all
other parties rights are reserved to assert this Bankruptcy Courts jurisdiction over any such
matters.
132. Resolution of Objection of Arrowgrass Master Fund Limited [Docket No. 1402].
Consistent with the Order Approving Debtors Motion Pursuant to Bankruptcy Code §§ 105 and 363 and
Bankruptcy Rule 9019 for an Order Authorizing the Debtors to Compromise Certain Intercompany Claims
and Equity Interests [Docket No. 930], its exhibits and the Disclosure Statement, as part of the
global settlement of all the disputes of the parties, Arrowgrass Master Fund Limited
(Arrowgrass) shall receive an Allowed Claim entitled to administrative priority pursuant
to § 503(b) of the Bankruptcy Code, without the need to file any application or other submission
with the Bankruptcy Court, in the amount of $500,000 (the Arrowgrass Administrative
Claim); provided however, that Arrowgrass must provide an invoice to the Debtors, 8.125% Notes
Indenture Trustee and Creditors Committee prior to the payment of any portion of such
Administrative Claim. The Arrowgrass Administrative Claim shall not be subject to any challenge,
counterclaim, defense, offset, set-off or reduction. The Arrowgrass Administrative Claim shall be
treated in accordance with the terms of the Plan. Section 5.10 of the Plan shall not apply to the
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Arrowgrass Administrative Claim. In addition, if Arrowgrass submits a timely application to
the Bankruptcy Court for allowance of an additional Claim pursuant to § 503(b) of the Bankruptcy
Code and as a Substantial Contribution Claim prior to the Administrative Claims Bar Date pursuant
to the procedures set forth in the Plan, the Debtors, the Creditors Committee and the Plan
Advisory Committee members appointed by the Liquidating Debtors and the Creditors Committee agree
not to object to such application for any amounts requested up to $150,000. All other parties in
interest, including without limitation the Plan Advisory Committee member appointed by the 8.125%
Notes Indenture Trustee, reserve all of their respective rights to object to such application on
any basis, and the Debtors, the Liquidating Debtors, the Plan Administrator and the Creditors
Committee each reserve their respective rights to object to any amounts requested in excess of
$150,000. In exchange for the foregoing, Arrowgrass agrees and it is hereby ordered that,
notwithstanding the Ballots it previously submitted rejecting the Plan, its votes on the Plan shall
be deemed to be votes in acceptance of the Plan and all provisions of this Confirmation Order, the
Plan and all related documents that apply to creditors who vote to accept the Plan shall also apply
to Arrowgrass, including without limitation Paragraph 91 herein.
133. Opco Reservation. The Debtors and the Liquidating Debtors, as applicable,
reserve all of their rights to assert claims and causes of action against DeepOcean Group Holding
AS, the Ad Hoc Committee of High Yield Noteholders and any member thereof (the Opco
Parties), for alleged breaches of the RSA and the Revised Term Sheet (the Opco
Claims), and nothing contained in the Plan or this Confirmation Order, including the
settlements and compromises incorporated therein and notwithstanding the language in Paragraph 23
hereof, shall in any way prejudice or impact the Debtors or Liquidating Debtors ability to bring
or prosecute such claims, preclude any remedies the Debtors or Liquidating Debtors may seek or be
permitted to be used by any of the Opco Parties as a defense to the Opco Claims. The Plan
Administrator shall have no duties, obligations or authority with respect to the pursuit, defense,
settlement or any other aspect of the Opco Claims, which litigation shall be entirely managed and
controlled by the Creditors Committee representative on the Plan Advisory Committee as set forth
in this Paragraph. In addition, the representative appointed by the Creditors Committee on the
Plan Advisory
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Committee shall have the exclusive power and authority to take all actions necessary or
appropriate to prosecute, pursue, defend, compromise, settle or otherwise resolve any Opco Claims;
provided, however, that the Plan Advisory Committee representative appointed by the Creditors
Committee must obtain the consent of the Plan Advisory Committee representative appointed by the
8.125% Notes Indenture Trustee on any decision to commence or not commence or to compromise, settle
or otherwise resolve the Opco Claims. To the extent reasonably practicable, the Creditors
Committee representative will inform the other Plan Advisory Committee representatives prior to
commencing an action regarding the Opco Claims and will provide such other representatives periodic
updates of the status of those proceedings. Any costs incurred in connection with the
commencement, prosecution, pursuit, defense, compromise, settlement or resolution of the Opco
Claims shall be borne from Distributions that otherwise would have been made to Class 5 and Class 6
as follows: 66.67% from Distributions that otherwise would have been made to the Holders of Class
5 Claims and 33.33% from Distributions that otherwise would have been made to the Holders of Class
6 Claims. Any amounts recovered from the prosecution of the Opco Claims shall be distributed
66.67% to Class 5 and 33.33% to Class 6.
134. Resolution of Objection of the Office of the United States Trustee.
Notwithstanding anything contained in this Confirmation Order or the Plan to the contrary, pursuant
to Bankruptcy Code § 1141(d)(3), Confirmation will not discharge the Debtors under Bankruptcy Code
§ 1141 of any debts. Notwithstanding Article XI and Section 12.10 of the Plan, the releases
contained in Section 12.09 of the Plan shall only apply to Holders of Claims and Interests who
voted in favor of the Plan.
135. Kistefos Transaction. The Debtors have not and will not make the determination
to consummate the Kistefos Transaction. Accordingly, the Old TMS Equity Interests will not be
cancelled on the Effective Date, pending a decision by the Plan Administrator to consummate the
Kistefos Transaction. The Plan Administrator shall have 90 days from the Effective Date to
consummate the Kistefos Transaction with the advice and consent of the Plan Advisory Committee.
Such 90 day period may be extended by the Plan Administrator with the consent of the Plan Advisory
Committee. In accordance with Section 3.03(i) of the Plan, the treatment of Class 9 under the Plan
shall depend on
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whether the Kistefos Transaction is consummated. If the Plan Administrator opts not to elect
to implement the Kistefos Transaction, with the consent of the Plan Advisory Committee, the Old TMS
Equity Interests shall be cancelled.
Dated:
|
______________, 2011 | |
Wilmington, Delaware |
UNITED STATES BANKRUPTCY JUDGE
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