Ultra Petroleum Creditors Say Reorg Plan Undervalues Business

Creditors of Ultra Petroleum Corp. are opposing its plan to reorganize and slash $2 billion worth of debt, concerned that it undervalues the business by about $500 million.

The oil and natural gas driller’s Chapter 11 plan is predicated on a flawed enterprise value that reduces the value of returns for unsecured creditors in order to keep them “out of the money,” an unsecured creditors committee said in an Aug. 1 objection filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The creditors contend that the methodology used by Ultra Petroleum’s investment banker Centerview Partners LLC applies ...