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Ultra Petroleum says bankruptcy court denied make-whole claims objection

Published 09/22/2017, 03:32 PM
© Reuters.  Ultra Petroleum says bankruptcy court denied make-whole claims objection
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  • Ultra Petroleum (UPL +0.2%) plunges as much as 9% before bouncing to breakeven after saying the bankruptcy court presiding over its Chapter 11 reorganization rejected the company's bid to throw out "make-whole" claims by some of its existing bondholders.
  • Some UPL noteholders filed suit late last year claiming provisions in their debt agreement require the company to fully reimburse the amounts they are owed regardless of any writedown of UPL's liabilities through bankruptcy proceedings; the bondholders were joined by other bondholders as plaintiffs in January, and UPL eventually set up a $400M reserve fund to cover the potential claims while they worked their way through the courts.
  • UPL says it may appeal but also says the ruling should not cause financial or liquidity impact to the company since the amounts are fully covered by the reserve fund.
  • Now read: A 'For Sale' Sign At Ultra Petroleum


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