California Resources Settles Last Creditor Dispute in Bankruptcy

Oil and gas producer agreed to give unsecured creditors warrants for 5% of the new stock to be issued as part of California Resources’ proposed reorganization, in a deal that ends the last major obstacle to its bankruptcy exit plan.

• Before the deal, the official committee of unsecured creditors was preparing to oppose the reorganization proposal in court; the settlement means nearly all the company’s creditors now back the plan
• “There are fights worth having and fights not worth having, and this was one not worth having,” California Resources bankruptcy attorney Jim Bromley said in court
• After the deal ...